On Earth Day, 22 April 2026, the European Commission published “AccelerateEU: Hydrogen Decarbonisation Plan”, with the core commitment to revise the delegated act of the Renewable Energy Directive (RED III) by the end of the second quarter of 2026. The current delegated act requires green hydrogen to meet “additionality” (electrolysers must be powered by new renewable electricity) and “temporal matching” (hourly matching). Industry complains that these rules make European green hydrogen production 2.5 times more expensive than in the US.

The proposed revision will introduce a “low threshold additionality” option: in regions where renewable electricity accounts for more than 80%, electrolysers may use power from the existing grid as long as overall carbon intensity in that region declines. In addition, the Hydrogen Banking Alliance will launch a “Hydrogen Contract for Difference” window with a total of €3 billion to cover the cost gap between green and grey hydrogen.

Accelerate EU also plans to designate at least ten “European Hydrogen Valleys” during 2026, each receiving up to €200 million to build multi sector hydrogen clusters (industry, transport, power generation). Although environmental groups strongly oppose relaxing the additionality rules, the Commission argues this is a necessary compromise to compete with Chinese and American production. The revised delegated act is expected to be formally adopted by September 2026.