The European Union Council has adopted new regulations aimed at reforming the bloc's gas market and promoting the development of renewable and low-carbon gases, particularly hydrogen.

According to EU Council’s announcement on May 21, 2024, the package establishes a framework for a future hydrogen market, including dedicated infrastructure, and sets rules for the transport, supply, and storage of both natural gas and hydrogen.

The new rules emphasize integrated and transparent network planning across the EU, prioritizing energy efficiency and taking a long-term perspective, with gas and hydrogen network operators expected to collaborate on a 10-year development plan.

To support the transition away from fossil fuels, the legislation discourages new long-term contracts for natural gas after 2049. The legislation encourages member states to promote renewable and low-carbon gases, with specific support for hydrogen integration in coal and carbon-intensive regions. Key measures include tariff discounts and incentives to facilitate market entry for hydrogen.

The package also strengthens protections for vulnerable customers and those facing energy poverty, with a focus on remote areas. Member states will implement safeguards like disconnection protections and designate suppliers of last resort to ensure continued energy access.

The regulation will enter force six months after its publication in the EU Official Journal and requires member states to adapt their national legislation within two years.

This package is part of the EU's Fit for 55 legislative drive to update regulations and achieve its climate goals. The Commission proposed the reforms in December 2021, and negotiations with the European Parliament concluded in late 2023.