Our new Standpoint, “The EU Hydrogen Strategy Review: A Sectoral Approach,” proposes replacing overarching hydrogen-volume targets with sector-specific decarbonization targets.
As the European Commission reassesses its 2020 Hydrogen Strategy, we consider the gap between ambition and real-life deployment: The EU targeted 6 GW of electrolyzer capacity by 2024. Yet by mid-2025, capacity had only reached approximately 0.57 GW. That gap warrants a closer look at the strategy’s assumptions.
A sectoral approach means assessing which sectors can cut emissions efficiently with clean hydrogen and which ones would benefit from other decarbonization solutions, such as direct electrification.
The implications are practical:
• Prioritize direct electrification where feasible.
• Focus scarce clean hydrogen on applications with limited alternatives.
• Build infrastructure around credible industrial demand.
• Support innovations that could reduce future hydrogen needs.
Europe’s net-zero ambition remains essential. A more targeted approach can help deliver it while strengthening industrial competitiveness and energy security.