The European Union announced a comprehensive legislative framework aimed at reforming the natural gas market and developing the hydrogen and renewable energy market.

This legislation – which was adopted by the Council of the European Union – obligates gas and hydrogen network operators to develop a ten-year plan for the development of the European energy network, focusing on the principle of energy efficiency, and also prevents the conclusion of long-term contracts for fossil gas starting in 2049.

Member states are providing incentives and reductions in customs duties to facilitate integration into the renewable gas market, especially the emerging hydrogen market, and a voluntary mechanism is being put in place to support the hydrogen market for a period of five years.

This initiative comes at a critical time as the European Union is exerting growing pressure on importers of Russian liquefied natural gas to reduce their purchases this year, as part of a campaign to change the source of supplies from Russia in light of the continuing Russian-Ukrainian war.

Although pipeline natural gas flows from Russia have declined, LNG shipments from the country have increased.

These developments represent the European Union's firm commitment to achieving its climate goals and building a sustainable energy future, but they face major challenges such as the cost of new infrastructure, concerns about hydrogen security, and the need for close international cooperation.