The German government approved on Wednesday a legal amendment to establish a framework for the development of the gas market and the future hydrogen market, aiming to implement the EU rules into the national law.

In particular, the cabinet adopted an amendment to the Energy Industry Act (EnWG) and additional regulations. The draft contains provisions on market design and the regulation of gas and hydrogen infrastructure. These include rules on the certification and unbundling of hydrogen and gas network operators, and on the labelling of renewable and low-carbon gases and hydrogen by suppliers to end consumers.

The draft also contains provisions for future distribution network development plans. Among others, network operators will be able to plan based on demand. The network planning decisions are to be made regionally or locally, the government said.