After local industries raised concerns about cheap Chinese imports, the European Commission announced that it is working on framing tighter rules to ensure that European Union (EU) funding for hydrogen projects benefits European companies, according to a Reuters report.
The EU will proceed with the launch of its next round of funding for green hydrogen projects this month.
This move comes when Brussels attempted to start a domestic industry to produce fuel.
Also read: Hot weather inflamed by carbon pollution killed nearly 50,000 in Europe last year, study finds
Alongside, the EU is taking a tougher position on other green technologies from China by imposing tariffs on electric vehicles, which it claims are receiving excessive subsidies.
European manufacturers of electrolysers, which generate hydrogen by splitting water with electricity, have expressed concerns about their inability to compete with lower-priced Chinese producers.
European manufacturers are urging the EU to implement criteria that favor local companies in its Hydrogen Bank funding scheme.
Also read: Europe’s top carbon polluters face rising bond interest rates, Dutch Central Bank report says
Wopke Hoekstra, Commissioner for Climate Action, said that while the specifics of the planned hydrogen subsidy criteria are still being finalized, they might include requirements for work to be performed within Europe or set limits on projects’ reliance on non-EU countries.
In April, the EU allocated 720 million euros to seven hydrogen projects within the EU.
At that time, industry sources mentioned that the low-priced bids from some of the selected projects suggested they might be using cheaper equipment from China, according to the Reuters report.