Hydrogen’s harder test in Europe

New EU low-carbon hydrogen rules sharpen emissions scrutiny, reshape investment decisions, and force companies to rethink supply chains and partnerships

15 Jan 2026

Europe’s hydrogen industry is crossing a line from ambition to accountability. On 8 July 2025, the European Commission adopted a Delegated Act that spells out how emissions must be measured to qualify as low-carbon hydrogen. The rules still face review by the European Parliament and Council, with deadlines expected later this year. But the market is already responding.

The message from Brussels is straightforward. Labels will no longer rest on broad claims of sustainability. They will hinge on verified data. For an industry built on long contracts and public backing, that change matters now, not later.

Project developers are adjusting first. Designs are being reworked to meet audit-ready standards. Data systems are moving from optional to essential. Fuel suppliers are rewriting contracts to reflect measurable carbon intensity, not general targets. Buyers are also changing behavior, especially in transport and logistics, where hydrogen origin and emissions performance can determine access to EU and national support schemes. Not every incentive is tied directly to the new definition, but the rules create a shared baseline that many programs are likely to follow.

Investors are watching closely. Clearer measurement criteria reduce uncertainty and help capital flow toward projects that fit EU expectations. Weak documentation does the opposite. It raises concerns for lenders and offtakers already wary of cost overruns and delays. Industry groups largely welcome the shift, arguing that legal clarity is overdue as project timelines stretch and margins tighten.

Economic pressure is shaping decisions as much as policy. Slower demand growth and higher input costs have forced companies to trim plans, pause investments, or rethink partnerships.

The fuel cell supply chain offers a stark example. Michelin, Forvia, and Stellantis recently approved a restructuring and refinancing of their joint venture Symbio. The plan includes cutting roughly 70 percent of the workforce after Stellantis scaled back its hydrogen fuel cell vehicle program, which had supplied most of Symbio’s demand. The unanimous shareholder vote reflects how quickly hydrogen strategies can change when policy ambition runs ahead of market readiness.

For manufacturers and infrastructure operators, the lesson is clear. Europe’s next hydrogen chapter will favor credibility over hype and scale grounded in evidence. The era of promises is giving way to a market that asks for proof.