Recast EU Directive on gas and hydrogen markets

Briefing 24-07-2024

On 15 December 2021, the Commission adopted a legislative proposal to recast the 2009 EU Gas Directive as part of the proposed hydrogen and decarbonised gas markets package. In the European Parliament, the file was referred to the Committee on Industry, Research and Energy (ITRE) in 2022. Parliament and Council reached a provisional agreement on 28 November 2023. ITRE approved the provisional agreement on 23 January 2024 and the plenary did so on 11 April 2024. The Council approved the agreement on 25 May 2024 and the revised Gas Directive was published in the Official Journal of the EU on 15 July 2024 and entered into force on 4 August 2024. The directive lays down common rules for the internal market in renewable and natural gases, as well as in hydrogen, including their transmission, distribution, supply, and storage. It covers market access, authorisation procedures and system operations. It also outlines plans for an EU-wide hydrogen network and for separating gas and hydrogen supply and generation from the operation of transmission networks, thus retaining both the horizontal and the vertical unbundling regimes. In alignment with the Commission's proposal, it envisages phasing out long-term contracts for fossil gas by 2049. Fourth edition of a briefing originally written by Alex Wilson. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.