Gas grid regulation in the context of net zero transitions: A review of seven European countries

Abstract

This paper addresses the urgent need for reforming gas infrastructure planning in Europe to align with climate targets. Currently, gas grid development is reactive, driven by distribution system operators (DSOs), rather than proactively adapting to declining demand for fossil gas which is required in order to meet climate goals. Drawing on case studies from seven European countries, this paper explores gas grid regulation in the context of net zero. We find that current regulatory frameworks across many countries show a disconnect between infrastructure planning and the necessity to phase out fossil gas. There are, however, first steps being taken now to deal with the challenge of falling gas demand. We draw on those examples and develop policy recommendations for managing the transition away from fossil gas in a more coordinated and fairer way.