Germany’s Power-to-X policy for climate-neutral transport

Germany, aligned with the European Union, has set important targets for decreasing greenhouse gas emissions by 65% by 2030 and achieving climate neutrality by 2045. In this context, Power-to-X fuels have emerged as promising solutions for defossilizing transport modes less suitable for electrification. However, a significant challenge in developing Power-to-X fuels is the lack of a well-defined regulatory framework for their production and utilization. Thus, this study investigates the regulatory landscapes of the EU and Germany, aiming to comprehend objectives, support schemes, and advancements. A total of 25 legal frameworks from the EU and Germany with direct or indirect effects on Power-to-X fuels were identified. For a detailed and comprehensive policy analysis, a qualitative inductive approach based on a coding scheme and policy content analysis, was implemented. Findings indicate that several updates in the German and EU regulatory frameworks addressed Power-to-X fuels in the 2010s and 2020s. The RED III, the REFuelEU Aviation and the FuelEU Maritime have shown to be turning points for Power-to-X fuels in the EU. In Germany, the most relevant policies are the 37. BImSchV, the National Hydrogen Strategy, and the PtL Roadmap. Key challenges are identified related to the limited coherence among policies supporting the sustainable use of resources for the fuel production.