Germany strengthens hydrogen market framework through RED III implementation
Germany has taken a major step in accelerating the hydrogen economy through the adoption of its RED III implementation package and the further development of the national greenhouse gas reduction quota (THG-Quote). Approved by the Bundestag in April and adoption in the Bundesrat early May, the legislation strengthens long-term regulatory certainty for renewable fuels of non-biological origin (RFNBOs), including green hydrogen and its derivatives, sending a strong investment signal for hydrogen production, infrastructure and industrial decarbonisation. The new framework introduces a gradual increase of RFNBO targets in the transport sector, starting at 0.1% in 2026 and rising significantly toward 2040, while the overall greenhouse gas reduction quota for fuels will increase to as much as 59–65% by 2040 depending on the final implementation pathway.
