This study takes on the issue of political and socio-economic conditions for the hydrogen
economy as part of a future low carbon society in Europe. It is subdivided into two parts. A
first part reviews the current EU policy framework in view of its impact on hydrogen and fuel
cell development. In the second part an analysis of the regional dynamics and possible
hydrogen and fuel cell clusters is carried out.
The current EU policy framework does not hinder hydrogen development. Yet it does not
constitute a strong push factor either. EU energy policies have the strongest impact on
hydrogen and fuel cell development even though their potential is still underexploited.
Regulatory policies have a weak but positive impact on hydrogen. EU spending policies show
some inconsistencies.
Regions with a high activity level in HFC also are generally innovative regions. Moreover,
the article points out certain industrial clusters that favours some regions' conditions for
taking part in the HFC development. However, existing hydrogen infrastructure seems to play
a minor role for region's engagement. An overall well-functioning regional innovation system
is important in the formative phase of an HFC innovation system, but that further research is
needed before qualified policy implications can be drawn.
Looking ahead the current policy framework at EU level does not set clear long term signals
and lacks incentives that are strong enough to facilitate high investment in and deployment of
sustainable energy technologies. The likely overall effect thus seems to be too weak to enable
the EU hydrogen and fuel cell deployment strategy. According to our analysis an enhanced
EU policy framework pushing for sustainability in general and the development of hydrogen
and fuel cells in particular requires the following: 1) A strong EU energy policy with credible
long term targets; 2) better coordination of EU policies: Europe needs a common
understanding of key taxation concepts (green taxation, internalisation of externalities) and a
common approach for the market introduction of new energy technologies; 3) an EU cluster
policy as an attempt to better coordinate and support of European regions in their efforts to
further develop HFC and to set up the respective infrastructure
