Recast EU Regulation on Gas and Hydrogen Networks

Briefing 01-02-2024

On 15 December 2021, the European Commission adopted a legislative proposal to recast the 2009 EU Gas Regulation as part of the hydrogen and decarbonised gas markets package. This reflects the EU's growing climate ambitions, as outlined in the European Green Deal and its 'fit for 55' package. The proposal seeks to support the decarbonisation of the energy sector by increasing the production of renewable gases and hydrogen across the EU, and facilitating their integration in existing or new gas networks. It would create an EU legislative framework for hydrogen networks. In the European Parliament, the file was referred to the Committee on Industry, Research and Energy (ITRE), which adopted its report on 9 February 2023. The report was endorsed at the plenary session of 15 March 2023. The Council adopted its general approach on 28 March 2023. The Parliament and the Council reached a provisional agreement on 8 December 2023. Among other provisions, the agreement enshrines in legislation the voluntary demand aggregation mechanism for gas, as proposed by Parliament. The regulation includes the possibility for Member States to restrict imports of gas from Russia and Belarus, whether via pipeline or LNG. The Parliament and the Council now need to approve the provisional agreement. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure. The first edition was drafted by Alex Wilson.