A group of 170 companies investing across Europe’s energy sector has called on the European Commission to maintain binding targets and mandates for renewable hydrogen and Renewable Fuels of Non-Biological Origin (RFNBOs) beyond 2030 under the Renewable Energy Directive (RED III).

The request was made in a letter addressed to European Commission President Ursula von der Leyen, Executive Vice-President Teresa Ribera and Commissioner for Energy and Housing Dan Jørgensen.

The companies argue that removing the RFNBO targets would not constitute regulatory simplification. Instead, they warn that it could undermine six years of work, penalise companies that invested early and weaken confidence in the stability of EU climate and energy policy.

The appeal comes as Europe considers its post-2030 energy framework and Member States continue implementing RED III requirements.

More than €15 billion already committed

The signatories argue that the existing transport targets are already helping to mobilise investment in renewable hydrogen.

According to industry figures, more than €15 billion has been committed in Europe to date, giving the region the largest volume of investment in end-use hydrogen applications globally.

Investment in Europe has also increased by 35% over the past year, while more than 4 GW of electrolysis capacity is currently under construction.

The companies attribute much of this growth to the transposition of RED III transport targets and argue that maintaining a stable regulatory demand signal will be critical for projects currently under development.

Up to €60 billion in additional investment

Meeting the existing RED III targets by 2030 could represent a further investment opportunity of between €50 billion and €60 billion, according to the industry.

The deployment associated with these targets could also deliver potential emissions savings of approximately 30 million tonnes of CO2 per year.

However, the companies acknowledge that improvements to the existing framework are needed. The industry has called for changes to RED III and is asking the European Commission to continue working with hydrogen companies and Member States to remove barriers and ensure that the industrial targets are achievable.

The signatories argue that these changes should focus on better implementation, stronger support mechanisms and effective enforcement rather than removing the targets and mandates altogether.

Industry calls for long-term investment certainty

One of the main arguments put forward by the companies is the need to provide long-term regulatory predictability for investors.

The signatories warn that weakening the demand signal established over the past several years could affect investment decisions made under the current European framework, particularly in a sector characterised by capital-intensive projects and long development timelines.

The industry also highlights the role renewable hydrogen could play beyond replacing fossil-based hydrogen in industrial applications. Hydrogen and its derivatives can support seasonal energy storage, grid flexibility and the use of surplus renewable electricity, while providing clean molecules for sectors that are difficult to electrify directly.

“This is a test of Europe’s credibility”

Hydrogen Europe CEO Jorgo Chatzimarkakis warned that weakening the targets now would effectively change the conditions under which European and international companies have made investment decisions.

“This is a test of Europe’s credibility,” Chatzimarkakis said, arguing that reversing course could stall clean-tech innovation and Europe’s refinery transformation just as the first large-scale projects begin to take off.

François Paquet, Managing Director of the Renewable Hydrogen Coalition, argued that the problem is not the existence of the targets but the challenges associated with delivering them.

“Europe needs investment. Investment needs certainty. Certainty needs binding RFNBO targets,” Paquet said, calling for better implementation, stronger support mechanisms and effective enforcement.

Hydrogen Council CEO Ivana Jemelkova also stressed the importance of maintaining a stable long-term policy direction to attract international capital. According to Jemelkova, keeping binding RFNBO targets and mandates beyond 2030 would signal that Europe can provide the certainty required by global investors.

The 170 companies are therefore calling for any post-2030 revision of the European framework to preserve the demand signal created by RED III while addressing the barriers currently slowing project development and the scale-up of Europe’s renewable hydrogen market.