Changes from report parliamentary committee draft to plenary report

Added(3a) Internal market rules for gaseous fuels need to be aligned with the Union’s climate and energy law, in particular, Regulation (EU) 2021/1119 of the European Parliament and of the Council. The legal framework set out by this Directive is therefore amended accordingly.

RemovedRecital 70: (70) In order to ensure transparency with regard to the costs and financing of regulated activities, activities of hydrogen network operation should be separated from other network operation activities for other energy carriers at least in relation to the accounts of network operators.

Added(3b) In response to the hardships and global energy market disruption caused by Russia’s unprovoked and unjustified military aggression against Ukraine, and in line with the communication of the Commission of 18 May 2022 ‘REPowerEU Plan’ (the ‘REPowerEU Plan’), the Union and the Member States should phase out its dependency on Russian energy imports as soon as possible and well before 2030, because those imports are detrimental to the objectives of the Energy Union, including energy solidarity, to effective functioning of and competition in the internal energy market, as well as to security of energy supply and the essential security interests of the Union and of the Member States.

RemovedRecital 72: (72) The availability of large-scale underground hydrogen storage facilities is limited and distributed unevenly across Member States. In view of the potentially beneficial role for the functioning of hydrogen transport and markets, the access to such large-scale underground storages should be subject to regulated third party access in order to ensure a level playing field for market participants. The access to smaller hydrogen storage facilities should be subject to regulated or negotiated third-party access, taking into account the competition in the hydrogen storage market.

Added(3c) The REPowerEU Plan pledge to phase out Russian gas imports as soon as possible, equalling 155bcm in 2019 and representing 40 % of final fossil gas demand, translates into a higher ambition for the gas savings and the acceleration of the uptake of renewable alternatives, including biomethane, electricity, district heating and cooling, as well as the ramp-up of the European hydrogen market. Taking into account the fact that fossil gas demand in the Union has been rising over the recent years, there is a need to establish governance underpinning that ambition and the Union’s independence.

RemovedRecital 79: (79) In some cases, depending among others on the topography of hydrogen networks and the population of end-users connected to the hydrogen networks, hydrogen quality management by hydrogen network operators could become necessary (e.g. purification). Therefore, regulatory authorities should task hydrogen network operators with ensuring efficient hydrogen quality management in their networks to meet the quality requirements of different end-use applications. When undertaking such activities, hydrogen network operators should comply with applicable hydrogen quality standards and ensure a stable hydrogen quality at the exit point.

Added(4) As part of the Package ‘Clean Energy for all Europeans’ proposed by the Commission on 30 November 2016, Regulation (EU) 2019/943 of the European Parliament and of the Council and Directive (EU) 2019/944 of the European Parliament and of the Council brought about a further step in the development of the internal market for electricity with citizens at its core and contributing to the Union’s objectives of transition to a clean energy system and reducing greenhouse gas emissions. The internal market in natural gas should be built on those same principles and, in particular, ensure an equal level of consumer protection. In particular, Union energy policy should address vulnerable customers and tackle energy poverty.

RemovedRecital 109: (109) Transmission system operators play an important role in ensuring cost effective investments in gas networks. For an optimised planning across energy carriers and to bridge the gap between the diverse national and EU-wide network planning approaches, additional requirements for consistent planning are introduced. The network planning should also take account of the increased interlinkages between natural gas and electricity, as well as hydrogen and district heating.

Added(5) The Union must cut greenhouse gas emissions and promote modern, decentralised, efficient and integrated energy systems. It has therefore adopted a set of initiatives to reach that goal, including the energy system integration strategy, the communication of the Commission of 8 July 2020 on a hydrogen strategy for a climate-neutral Europe (the ‘EU Hydrogen Strategy’), Commission Recommendation (EU) 2021/1749, European Parliament resolution of 10 July 2020 on a comprehensive European approach to energy storage as well as Regulations (EU) 2018/1999 and(EU) 2021/1119 which together set out how to update the energy markets, including the decarbonisation of gas markets ▌. Those initiatives also call for transitioning to a more decentralised energy system with energy efficiency and energy system efficiency at its core, greater direct electrification of end-use sectors, prioritising demand-side solutions whenever they are more cost-effective than investments in energy infrastructure, greater focus on energy storage solutions, and prioritising the use of hydrogen for end-users in hard-to-decarbonise sectors where no other more energy and cost-efficient alternatives are available. The Union has also adopted a set of initiatives and mandatory targets to encourage decarbonisation in those sectors. This Directive should contribute to achieving those goals as well as the REPowerEU Plan ambition to phase out fossil imports from Russia as soon as possible ensuring security of supply and a well-functioning internal market for gas, including for hydrogen, and facilitating efficient and integrated energy systems.

RemovedRecital 110: (110) When developing the network development plan, it is important that infrastructure operators take the energy efficiency first principle16 into account, in particular, the expected consumption used for the joint scenario development and demand-side solutions that do not require new infrastructure investments.

Added(6) This Directive aims to facilitate the penetration of renewable gas and low-carbon gas into the energy system enabling a shift from fossil gas and to allow such new gas to make their contribution towards achieving the Union’s 2030 energy and climate objectives and climate neutrality in 2050, as well as to steering of gaseous molecules towards those applications and sectors that cannot be directly electrified with renewables, with this creating the necessary space for renewables electricity and other thermal renewables for heating and transport purposes. This Directive aims also to set up a regulatory framework which enables and incentivises all market participants to shift away from fossil gas and plan their activities to avoid lock-in effects and ensure gradual and timely phase-out of fossil gas notably in all relevant industrial sectors and for heating purposes.

RemovedRecital 112: (112) Network development plans are an important element to identify infrastructure gaps and provide information on infrastructure that needs to be built, that can be decommissioned or that could be used for other purposes, such as hydrogen transport. This is true irrespective of the unbundling model chosen for the network operators.

Added(6a) The integration of biomethane in the natural gas system supports the Union's climate objectives and helps to diversify the energy supply in line with the REPowerEU Plan. Requests for the grid connection of renewable gas production should be assessed within reasonable time limits and permitting procedures should not be hampered by a lack of administrative capacities. It should be possible to prioritise connection requests for renewable gas production over connection request for the production of natural gas and low-carbon gas.

RemovedRecital 113: (113) Providing information on infrastructure that can be decommissioned or repurposed within the network development plan may mean either leaving the infrastructure unused, dismantling it or using it for other purposes, such as hydrogen transport. The objective of this increased transparency on infrastructure takes into account that repurposed infrastructure is comparatively cheaper than newly built infrastructure and hence should enable a cost effective transition.

Added(7) The EU hydrogen strategy recognises that, as EU Member States have different potential for the production of renewable hydrogen, an open and competitive EU market with unhindered cross-border trade has important benefits for competition, affordability, and security of supply. Moreover, it stresses that moving towards a liquid market with commodity-based hydrogen trading would facilitate entry of new producers and be beneficial for deeper integration with other energy carriers. It would create viable price signals for investments and operational decisions. The rules laid down in this Directive should thus be conducive for hydrogen markets, commodity-based hydrogen trading and liquid trading hubs to emerge and any undue barriers in this regard should be eliminated by Member States. Whilst recognising the inherent differences, existing rules that enabled efficient commercial operations developed for the electricity and gas markets and trading should be rendered applicable to Union hydrogen markets to the extent appropriate and within a suitable time frame, also taking into account methane and hydrogen leakages.

RemovedRecital 114: (114) In Member States where a hydrogen network will be developed, reporting on the development of hydrogen infrastructure should ensure that the construction of a hydrogen system is based on a realistic and forward-looking demand projections including potential needs from the perspective of the electricity system. If Member States decide to allow for dedicated charges as a means of co-funding new hydrogen infrastructure, the report should support the regulatory authority in its assessment of these charges. The report should be submitted to the regulatory authority at least every two years, to be decided by the regulatory authority.

Added(7a) Hydrogen should be prioritised for feedstock, raw material or energy purposes in hard-to-decarbonise industries such as steel or chemicals and hard-to-decarbonise maritime and aviation applications. Conversely, all efforts should be made to avoid the use of hydrogen for applications where more energy or cost efficient alternatives exist. Other renewable gas, such as biogas, will be able to contribute to the energy and climate goal as long as they are produced using only truly sustainable feedstocks, such as waste and residues referred to in Annex IX, Part A, of Directive (EU) 2018/2001 of the European Parliament and of the Council.

RemovedRecital 114 a (new): (114a) Member States should ensure that regional and local authorities prepare local heating and cooling plans that aim to support the use of local renewable sources in the most efficient way and sector integration on local level. They should include a strategy that provides for the necessary requirements for the infrastructure at the distribution level in order to meet the current and future demand for heating and cooling of a specific area. The strategy should provide transparency for the public and final customers as well as a reliable timeframe for investors and distribution system operators to meet an area’s heating and cooling needs. The plans should be complementary to the local heating and cooling planning provided for in ... [the Energy Efficiency Directive - recast of the directive on energy efficiency 2021/0203 (COD)], taking into account the potential of energy efficiency as well as the energy performance of buildings, the joint scenario framework, the hydrogen network development report and the network development plan.

Added(8) In line with the EU Hydrogen Strategy and the REPowerEU Plan, 10 mt of domestic renewable hydrogen and 10 mt of imported renewable hydrogen are expected to be deployed already by 2030 and onwards for the purpose of increasing the flexibility of the electricity system and decarbonising certain sectors and applications where no other more energy or cost efficient alternative is available, ranging from aviation and shipping to hard-to-decarbonise industrial sectors. In addition, hydrogen will contribute to replacing Russian fossil fuels as swift as possible. Hydrogen use from domestic production or imported from third countries should be prioritised in hard-to-decarbonise sectors in which more energy and cost-efficient options are not available. All final customers connected to hydrogen systems will benefit from basic consumer rights applicable to final customers connected to the natural gas system such as the right to switch supplier and accurate billing information. In those instances where customers are connected to the hydrogen network, e.g. industrial customers, they will benefit from the same consumer protection rights applicable to natural gas customers. However, consumer provisions designed to encourage household participation on the market, such as price comparison tools and active customers, do not apply to the hydrogen system.

RemovedRecital 115: (115) Information contained in the network development plan should enable a forecast on the impacts on tariffs based on planning, decommissioning or repurposing affecting the regulated asset base as mentioned in Article 51 of this Directive.

Added(9) In line with the EU Hydrogen Strategy, the priority for the Union is to develop renewable hydrogen produced using mainly wind and solar energy. Renewable hydrogen produced using biomass energy falls under the definition of biogas, as defined in Article 2, point (28), of Directive (EU) 2018/2001. Renewable hydrogen is the only option compatible with the Union’s climate neutrality and zero pollution goal in the long term and the most coherent with an integrated energy system. However, renewable hydrogen production is not likely to scale fast enough to meet the expected growth in demand for hydrogen in the Union. Therefore, low-carbon fuels (LCFs), such as low-carbon hydrogen (LCH), may play a role in the energy transition in line with the Union climate targets, particularly in the short and medium term to rapidly reduce emissions of existing fuels, and support the transition of the Union’s industry in hard-to-decarbonise sectors in which more energy or cost-efficient options are not available, including in heavy-duty transport. In order to support the transition, it is necessary to adopt a technology-neutral approach and to establish a threshold for greenhouse gas emission reductions for low-carbon hydrogen and synthetic gaseous fuels. Such threshold should become more stringent for hydrogen produced in installations starting operations from 1 January 2031 to take into account technological developments and better stimulate the dynamic progress towards the reduction of greenhouse gas emissions from hydrogen production. The EU Energy System Integration strategy highlighted the need to deploy an EU–wide certification system to also cover low-carbon fuels with the aim of enabling Member States to compare them with other decarbonisation options and consider them in their energy mix as a viable solution. In order to ensure that LCF have the same decarbonisation impact as compared to other renewable alternatives it is important that they are certified by applying a similar methodological approach based on a life cycle assessment of their total greenhouse gas (‘GHG’) emissions, which should take into account at least upstream emissions from extraction of the fossil fuel, feedstock production and transportation, emissions from LCF production and processing, and emissions from transportation and distribution of LCF as well end-use emissions, considering methane leakages all along the value chain. Until the delegated act defining the methodology is adopted, the requirements of Commission Delegated Regulation (EU) 2021/2139 for hydrogen production should be guiding the definition of LCF for funding purposes. This would allow deploying a comprehensive Union-wide certification system, covering the whole Union energy mix. Taking into consideration that LCF and LCH are not renewable fuels, their terminology and certification could not be included in the proposal for the revision of Directive (EU) 2018/2001 ▌. Therefore, their inclusion in this Directive fills in this gap. When using the Union Database as single mass balance system for the certification of renewable and low LCF, there should be no physical tracking of the molecules inside the single mass balance system.

RemovedArticle 1 – paragraph 4: 4. This Directive establishes rules for the progressive establishment of a Union-wide interconnected hydrogen system contributing to the long-term flexibility of the electricity system and to the reduction of net greenhouse gas emissions of difficult to decarbonise sectors and thereby supporting to the decarbonisation of the EU energy system.

Added(9a) Although priority should be given to promoting a domestic hydrogen production within the Union, the Union may not be able to produce enough renewable and low-carbon hydrogen to meet its demand. Imports of renewable and low-carbon hydrogen are likely to be necessary for the rapid availability of large quantities of hydrogen catering for the Union’s demand, in particular from neighbouring countries and regions such as Norway, Ukraine, North Africa and the Middle East. Therefore, the Commission and the Member states should engage in an open and constructive dialogue in order to establish mutually beneficial cooperation and partnerships with neighbouring regions safeguarding the Union’s strategic interests and the energy security of both the Union and its partners. Hydrogen partnerships and intergovernmental agreement with third countries on hydrogen imports should contribute to the creation of clean and new technology markets through the transfer of knowledge and the achievement of the United Nations Sustainable Development goals. A level playing-field, based on equivalent rules or standards in third countries in terms of environmental protection, sustainability and mitigating climate change should be promoted while avoiding negative social or environmental effects, for example the relocation of environmental impacts, including greenhouse gas emissions, any delay in the decarbonisation of energy in third countries, access to energy for local population, threats to the drinking water supply or exploitative working conditions. In that context, hydrogen production and export from third countries should be subject to internationally recognised due diligence principles, such as the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and the OECD Due Diligence Guidance for Responsible Business Conduct (RBC). Hydrogen should become an element of the Union’s international cooperation, inter alia within the framework of the International Renewable Energy Agency’s (IRENA’s) work, research cooperation, climate and energy diplomacy and the European Neighbourhood Policy. The certification and life cycle assessment methodology of LCF should also apply to imports. This would ensure that partner countries can easily identify the Union requirements for LCF to be certified as such, ensure market confidence, and foster transparent imports of LCF. By developing such a methodology, the Union can also take a leading role in developing global standards for LCF certification and strengthen its role as a global climate leader, using its climate diplomacy to develop mutually beneficial cooperation with exporting partners.

RemovedThis amendment aims to support the energy system integration. Large-scale storage and re-electrification of hydrogen is one available climate-neutral solution providing long-term flexibility for the electricity system.

Added(9b) Against the background of the EU Hydrogen Strategy and REPowerEU Plan, the Commission should assess in the report whether additional measures such as setting an indicative greenhouse gas intensity reduction target for gas consumed in the Union by 2030 may be necessary to cater for an investment and pathway for further upscaling of renewable gas and low carbon gas across the Union, while taking into account the gradual phase-out of fossil gas and the assumed reduction of demand for gas in sectors other than hard-to-decarbonise sectors where no other more energy and cost-efficient options are available. Such measures could provide predictability to customers, in particular in hard-to-decarbonise sectors, to make the necessary investments to transform their operations. Without prejudice to the prioritisation of the roll-out and uptake of renewable gas, they may also enable different technologies to contribute towards the Union indicative target and the overall Union decarbonisation commitments. Low-carbon gas should be regarded as transitional as long as renewable gas, in particular renewable hydrogen, are a scarce source.

RemovedArticle 2 – paragraph 1 – point 1: (1) ‘natural gas’ means all gases that primarily consist of methane, including biogas, as defined in Article 2, point (28) of Directive (EU) 2018/2001, that has been upgraded to biomethane, or other types of gases, that can technically and safely be injected into, and transported through, the natural gas system;

Added(9c) Hydrogen corridors as identified in the REPowerEU Plan should be supported by the corresponding dedicated hydrogen infrastructure, including hydrogen networks, hydrogen storage and hydrogen import terminals in order to meet the REPowerEU Plan targets for hydrogen production and imports by 2030. Therefore, the network development plans should identify investment gaps, in particular with regard to ensuring sufficient cross-border capacities which are needed for the establishment of an integrated European hydrogen market enabling hydrogen to move freely across the borders, taking into account the hydrogen storage development and the integration of hydrogen imports.

RemovedArticle 2 – paragraph 1 – point 2: (2) ‘renewable gas’ means biogas as defined in Article 2, point (28) of Directive 2018/2001, including biogas that has been upgraded to biomethane, and renewable gaseous fuels part of fuels of non-biological origins (‘RFNBOs’) as defined in Article 2, point (36) of that Directive’;

Added(9d) The definition of hydrogen ready infrastructure and end-use applications should ensure a common approach in Union funding programmes and the revised Climate and Energy state aid guidelines.

RemovedArticle 2 – paragraph 1 – point 21: (21) ‘hydrogen transport’ means the transmission or distribution of hydrogen through a hydrogen network, with a view to its delivery to customers, but not including supply, irrespective of the pressure, the geographic coverage or the connected customer group of the network;

Added(10) The freedoms which the Treaty guarantees the citizens of the Union — inter alia, the free movement of goods, the freedom of establishment and the freedom to provide services — are achievable only in a fully open market, which enables all consumers freely to choose their suppliers and all suppliers freely to deliver to their customers.

RemovedIn the long term, rights and obligations for the transport of hydrogen will be the same as for the transport of gas. For this reason, the regulatory framework for electricity and gas should also apply to hydrogen. This includes to distinguish between distribution and transmission of hydrogen.

Added(11) Consumer interests should be at the heart of this Directive and quality of service should be a central responsibility of natural gas undertakings. Existing rights of consumers and rights for access to essential services, including energy, and tackling energy poverty, as stated in the communication of the Commission of 26 April 2017 establishing a European Pillar of Social Rights ▌need to be strengthened and guaranteed, and should include greater transparency on prices. In that respect, cross-subsidisation of hydrogen network through natural gas or electricity network tariffs should be avoided, as it puts the burden of the energy transition of the industry sector on natural gas or electricity users, including household users. Consumer protection should ensure that all consumers in the wider remit of the Union benefit from a competitive gas market. Consumer rights should be enforced by Member States or, where a Member State has so provided, the regulatory authorities.

RemovedArticle 2 – paragraph 1 – point 21 a (new): (21a) ‘hydrogen transmission’ means the transport of hydrogen through a network which mainly contains high-pressure pipelines, other than an upstream pipeline network and other than the part of high-pressure pipelines primarily used in the context of local distribution of natural gas, with a view to its delivery to customers, but not including supply;

Added(12) The European Pillar of Social Rights places energy among the essential services everyone shall have access to and calls for support measures for those in need (principle 20). UN Sustainable Development Goal number 7 (SDG7) also calls for ensuring access to affordable, reliable, sustainable and modern energy for all. This Directive builds on comprehensive and common concepts of vulnerable customers and energy poverty.

RemovedIn the long term, rights and obligations for the transport of hydrogen will be the same as for the transport of gas. For this reason, the regulatory framework for electricity and gas should also apply to hydrogen. This includes to distinguish between distribution and transmission of hydrogen.

Added(13) Public service requirements and the common minimum standards that follow from them need to be further strengthened to make sure that all consumers, especially vulnerable ones, can benefit from competition and fair prices. The public service requirements should be defined at national level, taking into account national circumstances; Union law should, however, be respected by the Member States.

RemovedArticle 2 – paragraph 1 – point 21 b (new): (21b) ‘hydrogen distribution’ means the transport of hydrogen through local or regional pipeline networks with a view to its delivery to customers, but not including supply;

Added(14) Member States should ensure that household customers and, where Member States consider it to be appropriate, small enterprises, enjoy the right to be supplied with gas of a specified quality at clearly comparable, transparent and competitive prices. Member States should maintain a wide discretion to impose public service obligations on gas undertakings in pursuing objectives of general economic interest without hampering the transition to an integrated, highly energy efficient and on renewables-based energy system in accordance with the relevant Union targets, law and strategies. However, public service obligations in the form of price setting for the supply of natural gas constitute a fundamentally distortive measure that often leads to the accumulation of tariff deficits, the limitation of consumer choice, poorer incentives for energy saving and energy efficiency investments, lower standards of service, lower levels of consumer engagement and satisfaction, and the restriction of competition, as well as to there being fewer innovative products and services on the market. Consequently, Member States should apply other policy tools, in particular targeted social policy measures, to safeguard the affordability of natural gas supply to their citizens. Public interventions in price setting for the supply of natural gas should be carried out only as public service obligations, and ▌be limited in time, while being subject to specific conditions. A fully liberalised, well-functioning retail natural gas market would stimulate price and non-price competition among existing suppliers and provide incentives to new market entrants, thereby improving consumer choice and satisfaction.

RemovedIn the long term, rights and obligations for the transport of hydrogen will be the same as for the transport of gas. For this reason, the regulatory framework for electricity and gas should also apply to hydrogen. This includes to distinguish between distribution and transmission of hydrogen.

Added(14a) Member States should ensure the continuous and uninterrupted availability of energy and the technical safety of energy supply by increasing efficiency and interoperability of transmission and distribution networks, promoting system flexibility, avoiding congestions, ensuring resilient supply chains, cybersecurity and the protection and climate adaptation of all, and in particular, critical infrastructure while reducing strategic energy dependencies.

RemovedArticle 2 – paragraph 1 – point 22 a (new): (22a) ‘hydrogen transmission network operator’ means a hydrogen network operator that carries the function of the transport of hydrogen through a network, which contains mainly high-pressure pipelines, other than an upstream pipeline network and other than the part of high-pressure pipelines primarily used in the context of local distribution of hydrogen, with a view to its delivery to customers, but not including supply;

Added(15) Public interventions in the form of price setting for the supply of natural gas should be used without overriding the principle of open markets in clearly defined circumstances and beneficiaries and should be limited in duration. In exceptional circumstances, for example where supply is severely constrained, causing significantly higher gas prices than normal or in the event of a market failure where interventions by regulatory authorities and competition authorities have proven to be ineffective, Member States may broaden the scope of public intervention in price setting for the supply of gas to categories other than vulnerable customers and customers affected by energy poverty such as microenterprises, other household customers and protected customers, as defined in Article 2, point (5), of Regulation (EU) 2017/1938, in order to avoid significant impact on the economy and society. In order to mitigate the distortive effects of public interventions in price setting for the supply of natural gas and to reduce the public budget allocated over time for those interventions, Member States applying such interventions should put in place additional measures, including measures to prevent distortions of price setting in the wholesale market and allocate at least an equivalent financial amount to supporting beneficiaries in investing in energy efficiency and renewable energy projects, which would help to shield them sustainably and without recurring price interventions from natural gas prices fluctuations. Member States should ensure that all beneficiaries of regulated prices are able to benefit fully from the offers available on the competitive market when they choose to do so. To that end, they should be directly and regularly informed of the offers and savings available on the competitive market, and should be provided with assistance to respond to and benefit from market-based offers.

RemovedIn the long term, rights and obligations for the transport of hydrogen will be the same as for the transport of gas. For this reason, the regulatory framework for electricity and gas should also apply to hydrogen. This includes to distinguish between distribution and transmission of hydrogen.

Added(16) Public interventions in price setting for the supply of natural gas should not lead to direct cross-subsidisation between different categories of customers. According to that principle, price systems must not explicitly make certain categories of customer bear the cost of price interventions that affect other categories of customer.

RemovedArticle 2 – paragraph 1 – point 22 b (new): (22b) ‘hydrogen distribution network operator’ means a hydrogen network operator that carries the function of the transport of hydrogen through local or regional pipeline networks with a view to its delivery to customers, but not including supply;

Added(17) Clear and comprehensible information should be made available to consumers concerning their rights in relation to the energy sector. The Commission has established, after consulting relevant stakeholders including Member States, regulatory authorities, consumer organisations and natural gas undertakings, an accessible, user-friendly energy consumer checklist providing consumers with practical information about their rights. That energy consumer checklist should be maintained to date, provided to all consumers and should be made publicly available.

RemovedIn the long term, rights and obligations for the transport of hydrogen will be the same as for the transport of gas. For this reason, the regulatory framework for electricity and gas should also apply to hydrogen. This includes to distinguish between distribution and transmission of hydrogen.

Added(18) Member States should take into account the fact that the successful ecological transition requires enhanced investment in education, training and skills for workers in the energy sector, including gas industry, and related value chains, as well as in relation to infrastructure development and renewable energy roll out, such as heat pump deployment and other renewable alternatives. Such mention would be in line with the proposals for a revision of Directive 2012/27/EU of the European Parliament and of the Council (2021/0203(COD) and Directive (EU) 2018/2001 (2018/0201(COD) as well as the REPowerEU Plan. Social partners must play a key role in that process.

RemovedArticle 2 – paragraph 1 – point 48: (48) ‘security’ means the continuous and uninterrupted availability of energy and technical safety achievable by increasing efficiency and interoperability of transmission and distribution networks, promoting system flexibility, avoiding congestions, ensuring resilient supply chains, cybersecurity and the protection and climate adaptation of all, and in particular, critical infrastructure while reducing strategic energy dependencies;

Added(19) Market rules should protect and empower customers to make the most energy efficient choices, in order for new renewable gas and low carbon gas to be fully embedded in the energy transition and steered to those end-use sectors where no other more energy or cost efficient alternatives are available. For example, there is only a limited financial or environmental benefit in supplying hydrogen to individual heating appliances and such uses should therefore not be encouraged as a general principle.

RemovedA broader definition of security is needed to cope with today’s challenges and in line with the energy system integration.

Added(20) Natural gas still plays a key role in energy supply, as household energy consumption from natural gas is still higher than from electricity. Although electrification is a key element of the green transition, in the future there will still be household natural gas consumption including increasing volumes of renewable gas, in particular biomethane.

RemovedArticle 2 – paragraph 1 – point 69: (69) ‘energy poverty’ means a household’s inability linked to the non-affordability to meet its basic energy supply needs and lack of access to essential energy services as to guarantee basic levels of comfort and health, a decent standard of living, including adequate heating and cooling, lighting, and energy to power appliances, in the relevant national context, existing social policy and other relevant policies, as a result of an insufficient disposable income ;

Added(21) As the natural gas sector, including the natural gas retail market was not part of the Clean Energy for all Europeans Package, the related provisions on infrastructure planning and investments, consumer engagement and protection have not been adapted to the needs of the energy transition, which corresponds instead to the situation of over a decade ago when the Third Energy Package was adopted.

RemovedArticle 3 – paragraph 5 a (new): 5a. Member States shall ensure a consumer-centred and energy efficient approach in hydrogen market. The use of renewable and low-carbon fuels in the hydrogen network shall, in the early stages of market development, be prioritised for industrial customers in hard-to-decarbonise sectors with the highest greenhouse gas abatement potential, where more energy and cost efficient options are not available, including in heavy-duty transport.

Added(22) The natural gas market currently witnesses exceptional circumstances leading to high prices which are expected to remain rather high also in the years to come, poor customer satisfaction and engagement as well as slow uptake of new renewable gas and low-carbon gas and other renewable alternatives, which all reflect limited competition in many Member States as well as an unfavourable regulatory environment for electrification and other renewable alternatives. ▌Natural gas prices for household customers rose in the last decade resulting in household consumers paying two or three times more for their natural gas consumption than industrial customers.

RemovedThe hydrogen demand of these specific sectors will drive production capacity expansion, infrastructure development and overall market liquidity. Therefore, meeting future demand of industrial users shall be a priority when Member States design and implement the hydrogen market.

Added(22a) The energy prices crisis has shown the inability of the liquid market to give the right price signal and to adequately reflect the demand-supply dynamics in the price formation mechanism. It has also shown the inadequacy of the liquid market to cope with emergency situations, such as supply disruptions and market manipulation practices. In order to prevent high price volatility and to discourage anti-competitive conducts, trading platforms should make use of similar instruments already used in the financial markets for the same purposes. As suggested by European Securities and Markets Authority, those instruments should consist of, inter alia, trading halt mechanisms or price collars. ACER as well as regulatory authorities should continue to investigate any cases of market manipulations and distortions.

RemovedArticle 8 – paragraph 5: 5. By ... [6 months of the date of entry into force of this Directive], the Commission shall adopt delegated acts in accordance with Article 83 to supplement this Directive by specifying the methodology for assessing greenhouse gas emissions savings from low carbon fuels. The greenhouse gas emission savings from the use of low carbon fuels shall be at least 70% relative to a fossil fuel comparator with a threshold of 94 gCO2eq/MJ and based on their life-cycle emissions, taking into account at least upstream and downstream emissions, including methane leakage, as well as emissions related to the production, the transport and distribution and the end-use of low carbon fuels and low carbon hydrogen. Low carbon fuels shall comply with the maximum methane leakage rates and minimum carbon capture rates.