France’s New Hydrogen Mandate: What the 1.5% Transport Fuel Rule Means

• France proposes a 1.5% mandate for green hydrogen in transport fuels by 2030, exceeding the EU’s 1% goal.

• Fuel suppliers face strict fines for non-compliance, setting a high bar across Europe.

• The TIRUERT incentive scheme will be replaced by the stricter IRICC regulatory framework.

• France is moving forward despite lowering its domestic hydrogen production targets.

• The public consultation is open until June 10, allowing industry feedback before finalization.

In a significant move to accelerate the decarbonization of its transport sector, France has launched a public consultation to implement a 1.5% green hydrogen mandate in transport fuels by 2030—surpassing the EU’s 1% target under the Renewable Energy Directive III (RED III). This proposed regulation marks a crucial step in the nation’s climate strategy and sends a strong signal to fuel suppliers, hydrogen producers, and environmental policy makers across Europe.

About RED III

The Renewable Energy Directive (RED) is a key European Union (EU) legislation aimed at promoting the use of renewable energy sources and reducing greenhouse gas emissions. It sets binding targets for member states to increase their renewable energy consumption and also establishes sustainability criteria for biofuels.

RED III builds upon previous directives, setting more ambitious targets for renewable energy and specific sectors like buildings, transport, and industry. The directive III has a deadline of May 21, 2025, for Member States to transpose it into their national law.With regard to hydrogen, the RED III sets targets for renewable hydrogen consumption, particularly in industrial and transport sectors. It mandates that at least 42% of hydrogen used in industry be green by 2030, increasing to 60% by 2035. Additionally, it includes targets for renewable fuels of non-biological origin (RFNBOs) in transport, aiming for a 1% share by 2030

Why Green Hydrogen for Transport?

Green hydrogen, produced using renewable electricity through water electrolysis, is seen as a key solution to decarbonize hard-to-electrify sectors, including heavy-duty transport, shipping, and aviation. Unlike grey or blue hydrogen, green hydrogen emits no greenhouse gases during production, making it an essential part of the clean energy transition.

While battery electric vehicles dominate passenger transport, green hydrogen and its derivatives (like e-fuels or ammonia) are better suited for long-haul, energy-intensive transport applications where batteries fall short.

What is France Proposing?

France's ecological transition ministry has proposed a gradual ramp-up in the share of renewable hydrogen and its derivatives in transport fuels:

• 0.1% in 2026

• 1.5% by 2030

• 2% by 2035

This mandate will replace the current TIRUERT (Tax on the Incorporation of Renewable Energy into Transport) tax incentive system, which sets targets for renewable energy incorporation and offers a zero tax rate to taxpayers who meet the targets. In its place France intends to introduce a stricter framework called IRICC (Incentive for the Reduction of Carbon Intensity of Fuels). The shift from incentives to obligations reflects France’s tougher stance on climate action.

Non-Compliance = Big Fines

Fuel suppliers who fail to meet their hydrogen blending targets will face steep penalties:

• EUR 80 per gigajoule (GJ) of shortfall (~USD 86.50/GJ)

• EUR 700 per tonne of CO₂ not avoided (~USD 757/tonne)

These are among the harshest penalties in Europe, clearly indicating that France is serious about enforcing the new rules.

France vs EU vs Others

France’s 1.5% target is half a percentage point higher than the EU’s 1% requirement under RED III. Meanwhile, Finland has gone even further, proposing a 4% green hydrogen share by 2030, and Denmark is reportedly working on similar mandates.

France’s tougher target aims to help achieve the EU’s broader goal of reducing transport fuel carbon intensity by 14.5% by 2030.

The Consultation Process

The current policy is still under consultation, meaning the French government is actively seeking feedback from fuel suppliers, energy companies, environmental groups, and the public. The consultation is open until June 10, 2025. After this, the proposal may be refined and formally adopted.

Public consultations like this are vital for inclusive policymaking. They allow stakeholders to voice concerns, provide data-backed suggestions, and help the government shape practical, industry-ready regulations.

The Challenge: Domestic Hydrogen Production

Interestingly, France recently revised down its domestic green hydrogen production target—from 6.5 GW to 4.5 GW by 2030—due to market headwinds, such as high costs, project delays, and uncertain demand.

This raises questions:

• Can fuel suppliers meet the hydrogen quota if local production is lagging?

• Will France have to import green hydrogen or derivatives to fill the gap?

Despite the scaled-back production target, the new mandate puts clear pressure on the supply chain to accelerate the use of clean hydrogen in transport.

Implications for Industry

This policy shift will have major consequences for several stakeholders:

• Fuel suppliers will need to invest in hydrogen procurement or production to avoid fines.

• Hydrogen producers may benefit from guaranteed demand and a more robust market.

• Automakers and transport fleets may explore fuel cell technologies and hydrogen-compatible engines.

• Investors and clean tech firms will likely view this as a sign of growing momentum in the hydrogen economy.

What Happens Next?

With the consultation closing on June 10, all eyes will be on how France finalizes its policy. Questions to watch include:

• Will the 1.5% target remain unchanged?

• How will fuel suppliers respond?

• Will France offer any financial mechanisms to support compliance?

Regardless of the outcome, France is clearly trying to position itself as a hydrogen policy leader in Europe.