For the ramp-up of green hydrogen and renewable fuels, the VDMA is calling for an ambitious implementation of RED III into German law in a position paper.

The mechanical and plant engineering sector supplies the key technologies for climate protection and a sustainable industry. However, the ramp-up of the hydrogen economy and thus also of renewable fuels will only succeed if the EU Directive RED III (Renewable Energy Directive III) is consistently, ambitiously and reliably transposed into German law. This is made clear by the position paper that has now been presented.

Only with stable framework conditions, clear quotas and effective control mechanisms can investments be triggered and the climate targets achieved. Accordingly, the quota paths must be significantly more ambitious than previously envisaged. The avoidance of double regulation is to be welcomed, but the eligibility of fuels for aviation and shipping for the GHG quota must be ensured and the overall level of ambition must be maintained.

Finally, market transparency is also crucial, as it creates trust: On-site inspections must also be mandatory for non-biogenic fuels in order to prevent violations of the law and uncontrolled imports. The design must not put European producers at a disadvantage and must not encourage the relocation of production abroad. Sanctions must be high enough to ensure that "buying free" is not attractive, otherwise the necessary investments will not be made.

The German government has set the direction with the cabinet draft. Ambitious quotas and effective control mechanisms must now be anchored in the parliamentary process in order to secure investment and accelerate the ramp-up of climate-friendly fuels.

The VDMA has commented on the hydrogen industry quota of 42% with its position on the green gas quota, which you can find here.

You can find the position paper on RED III here.

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