How RED III and the EU Hydrogen Bank drive demand for certified RFNBO hydrogen, including the binding 2030 and 2035 industry sub-targets, and why certification matters.
Introduction
Certification can look like cost and paperwork until you see what it unlocks. RED III and the European Hydrogen Bank are the reason RFNBO certification is a commercial decision, not a compliance chore. Between them, they create binding demand for certified renewable hydrogen and channel support toward it. This article explains the market and policy drivers that make certification the ticket to the European market.
RED III created binding demand
RED III, Directive (EU) 2023/2413, is the amendment to the EU Renewable Energy Directive that raised the bar for hydrogen. It did two things that matter commercially. It increased the EU’s overall renewable ambition, and it set binding sub-targets specifically for RFNBO hydrogen in industry and transport.
The industry sub-targets are the headline. Hydrogen used in industry must be at least 42% RFNBO by 2030 and at least 60% by 2035. These are not aspirations. They are binding obligations on industrial users across the EU, which means a steadily rising share of industrial hydrogen has to be certified renewable hydrogen.
| Milestone | Requirement |
|---|---|
| 2030 | At least 42% of industrial hydrogen must be RFNBO |
| 2035 | At least 60% of industrial hydrogen must be RFNBO |
This is what turns green hydrogen from a voluntary sustainability story into regulated demand. Industrial buyers now have a reason they cannot ignore to source certified supply.
The European Hydrogen Bank channels support
Alongside the demand-side targets, the European Hydrogen Bank works on the supply side. It is an EU mechanism designed to support the renewable hydrogen market, including channelling funding to certified renewable hydrogen production. It is one of the main routes through which EU support reaches producers, and access generally depends on the hydrogen being certified as RFNBO through a recognised scheme.
The EU did not just ask for green hydrogen. It wrote certified renewable hydrogen into law, and put money behind it. Certification is how a producer gets access to both.
Why this matters for exporters
For a producer outside the EU, this is the commercial case for certification in one place. The EU is building a large, regulated, subsidised market for certified renewable hydrogen and ammonia. The binding targets guarantee demand, and the support mechanisms improve the economics. But the entire market is defined around RFNBO. A producer that cannot show recognised RFNBO certification is locked out of the regulated demand, whatever the quality of its product. For GCC exporters planning at scale, that makes certification a strategic priority, not a late-stage detail.
How ESGweise helps
ESGweise helps producers build the certification readiness that market access depends on. We work at the strategy stage to establish whether and how a project can meet the RFNBO rules, then build the greenhouse gas and lifecycle model and the evidence base that a recognised certification will rest on. Getting this right early is what lets a producer commit to the EU market with confidence. See our strategy and carbon accounting services, and the full scheme in the CertifHy pillar guide.
Conclusion
RED III made certified renewable hydrogen a regulated requirement in EU industry, rising from at least 42% by 2030 to at least 60% by 2035, and the European Hydrogen Bank puts support behind certified supply. Both are keyed to RFNBO certification. For any producer aiming at Europe, and for exporters most of all, that is the commercial reason certification comes first: it is the ticket to the market the EU has built.
Frequently asked questions
What is RED III and what did it change for hydrogen?
RED III is Directive (EU) 2023/2413, the amendment to the EU Renewable Energy Directive. For hydrogen, it raised ambition and introduced binding sub-targets for the use of RFNBO hydrogen in industry and transport. It made certified renewable hydrogen a regulated requirement in key sectors, rather than an optional green choice, which is what creates firm demand for RFNBO-certified supply.
What are the RED III hydrogen targets for 2030 and 2035?
RED III requires that hydrogen used in industry be at least 42% RFNBO by 2030 and at least 60% by 2035, with additional requirements in transport. These are binding sub-targets, which means industrial users across the EU have a regulatory obligation to source certified renewable hydrogen in growing proportions over time.
What is the European Hydrogen Bank?
The European Hydrogen Bank is an EU mechanism designed to support the market for renewable hydrogen, including channelling funding to certified renewable hydrogen production. It is one of the main routes through which EU support reaches producers. Access to this kind of support generally depends on the hydrogen being certified as RFNBO through a recognised scheme.
Why is certification the key to the EU hydrogen market?
Because the EU's targets and support are defined around RFNBO. To count toward RED III industry and transport sub-targets, to satisfy industrial buyers meeting those obligations, and to access support such as the European Hydrogen Bank, hydrogen generally has to be certified as RFNBO through a recognised voluntary scheme. Without that certification, a producer's hydrogen cannot participate in the regulated demand that makes the EU market attractive.