Gas for Climate: new gas for climate policy paper

• Gas for Climate advocates in new policy paper, that by 2030, 11% of all gas consumed in the EU should be renewable gas,
• The envisioned binding target is supported by two sub-targets for 8% sustainable biomethane and 3% renewable hydrogen. The target should be introduced in the EU Renewable Energy Directive,
• Gas for Climate continues to support EU policy making in 2021 by providing new analysis on hydrogen and biomethane.

Today, the Gas for Climate consortium published a policy paper which provides an analysis-based rationale on why an 11% renewable gas target is needed to meet the EU's climate ambition to cut GHG emissions by 55% in 2030. The policy paper follows last year’s Gas for Climate Gas Decarbonisation Pathways 2020-2050¹ report, which showed how additional policy measures are needed to scale-up biomethane, green and blue hydrogen which are all needed to meet the EU’s climate targets. This policy paper focuses on biomethane and green hydrogen, acknowledging they require additional incentives compared to the incentives required to scale-up blue hydrogen.

To ensure an accelerated and consistent market ramp-up of green hydrogen and biomethane across the EU, the envisioned 11% target is supported by two binding sub-targets for green hydrogen and biomethane. At least 8% of the gas consumed in the EU by 2030 should be biomethane, and at least 3% should be green hydrogen. The sub-targets reflect that biomethane is commercially available today and scalable in a sustainable manner, while green hydrogen should ramp up during the 2020s too. The 3% green hydrogen target aligns with the European Commission target for at least 40GW of electrolyser capacity in the EU. A binding target for renewable gas will help to reduce production costs of biomethane and green hydrogen during the 2020s, while in the long-term help to achieve the European decarbonisation targets at the lowest societal costs. Gas for Climate foresees that an EU-wide target of renewable gas would be translated into differentiated national targets.

The policy paper on renewable gas is the first in a series of policy papers to be launched in 2021. Gas for Climate is currently undertaking new activities including setting up a European Biomethane Alliance, and a new hydrogen demand analysis.

Supporting the vision of Gas for Climate and its ambition for 2021, DESFA, the Hellenic gas TSO, joined the consortium. Gas for Climate now has members from 9 EU member states. The new chair of Gas for Climate, Marie-Claire Aoun, head of Institutional Relations of Teréga, emphasises: "I am grateful that DESFA joins Gas for Climate at the start of a crucial year for renewable and low-carbon gases in the EU. In this dynamic period, I am honoured to chair the Gas for Climate initiative. We will continue to provide proposals and analyses to reach carbon neutrality in the EU in 2050 at the lowest costs for society".