The EU has set a price on carbon
Remove CO₂ protection to make green hydrogen competitive – NGO
Free allocations in the EU ETS means grey hydrogen producers are protected from carbon costs
A switch from unabated fossil hydrogen to renewable hydrogen is nearly viable economically with prices in the EU Emissions Trading System (ETS) at their current levels, but only if free allocation in the scheme is abolished, according to an analysis by non-governmental organisation Sandbag. The financial costs of such a switch in the methanol and fertiliser sectors are very close to a market price in the ETS of more than €55/t ($65/t) and are already below this price in the refining sector thanks to a market premium expected from selling Renewable Energy Directive II (Red II)-compatible transport fuel. The EU ETS market closed last week at just under €58/CO₂. “The switch to renewable h
Also in this section
4 February 2026
Europe’s largest electrolyser manufacturers are losing patience with policymakers as sluggish growth in the green hydrogen sector undermines their decision to expand production capacity
2 February 2026
As a fertiliser feedstock, it is indispensable, but ammonia’s potential as a carbon-free energy carrier is also making it central to global decarbonisation strategies
28 January 2026
The development of hydrogen’s distribution system must speed up if the industry is to stand any chance of grabbing a meaningful slice of the low-carbon energy market
14 January 2026
Continent’s governments must seize the green hydrogen opportunity by refining policies and ramping up the development of supply chains and infrastructure
