The European Commission plans a 100 billion euro Industrial Decarbonisation Bank (IDB) to fund mature low-carbon projects in energy-intensive industries. Hydrogen production and end-use are eligible but must compete on a technology-neutral basis against electrification, carbon capture, and other removal technologies. The IDB will start with a 400 million euro ETS Investment Booster from 2028 to 2030, then scale up using contracts for difference from 2031. The scheme mirrors Germany's carbon contracts for difference approach and includes dedicated support for maritime and aviation fuels. This is a significant funding mechanism for industrial decarbonisation, but hydrogen faces real competition from cheaper alternatives like direct electrification. The technology-neutral design means hydrogen projects must prove cost competitiveness to secure a share of the funds.
