7 January 2026
Automotive Package opens a lead market for hydrogen-based clean steel in Europe
The European Commission’s Automotive Package sends a strong signal for hydrogen by creating the first concrete lead market for European clean steel, a sector where renewable and low-carbon hydrogen is essential. From 2035, car manufacturers will be able to count the use of carbon-neutral fuels and low-carbon steel made in Europe to reach their fleet-wide emissions reduction target, offering OEMs greater flexibility in decarbonisation pathways. This is particularly significant for the steel industry, which is investing heavily in hydrogen-based direct reduced iron (DRI) technologies to produce high-quality primary steel with a much lower carbon footprint. By stimulating demand for clean steel, the package strengthens the business case for renewable hydrogen, supports European manufacturing, and advances EU climate and resilience goals.