The EU Renewable Energy Directive (RED III), requires that 42% of hydrogen used in industry be sourced from renewables by 2030, increasing to 60% by 2035, with renewable fuels of non-biological origin (RFNBOs) accounting for at least 1% of transport sector energy. Member States had to transpose the directive by May 21, 2025.
Under RED III, which entered into force in November 2023, Ireland must increase the share of renewable energy in heating and cooling by at least 0.8 pp and 1.1 pp as annual averages for the periods 2021-2025 and 2026-2030, and to speed up the permitting processes for renewable energy projects by 1 July 2024. Ireland has not implemented the provisions yet, and the EU has issued a formal notice against Ireland.
Although on May 28, 2025 an analysis of member states’ energy and climate plans for the coming years, pointed to 54 percent emission reductions by 2030 compared to 1990, very close to its 55 percent target, the RED III targets still seem to be crucial for reaching EU’s emission reduction goals. The EU Commission therefor announced that it will start to take infringement action against EU member states that have not fully implemented the Renewable Energy Directive (RED III). Triggered by slowing investment decisions and still high H2 costs, estimated at EU R8.13/kg ($9.31/kg) as of June 5, although down from a peak of EUR14.50/kg ($16.62/kg) in mid-December, also the hydrogen sector could potentially benefit from an accelerated implementation of REDIII. Only Romania and Czechia have fully transposed RED III quotas for both transport and industrial hydrogen use, with consultations ongoing in other member states, including the Netherlands and Germany.
The Commission already initiated infringement packages against eight countries beginning 2025 for missing mid-2024 permitting deadlines, including Bulgaria, Spain, France, Italy, Cyprus, Slovakia, Sweden, and the Netherlands.