Reflection Note: Incentivising hydrogen demand: Critical challenges and opportunities for EU policy

The European Union has recognised hydrogen as essential for industrial decarbonization and for achieving its climate goals. While a policy framework, funding schemes, subsidy mechanisms, and renewable hydrogen usage quotas have been created, mobilising demand for hydrogen remains challenging. This paper delves into these challenges, analysing the complex landscape of hydrogen adoption and identifying obstacles that must be addressed to unlock hydrogen full potential in decarbonising EU industry.