European Commission designates 235 cross-border energy projects to accelerate decarbonisation

The European Commission has this month designated 235 cross‑border energy projects as Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs), a move that unlocks access to Connecting Europe Facility (CEF) financing and accelerated permitting for initiatives spanning electricity, hydrogen, electrolysers and CO₂ transport and storage. According to Energies Media, the package includes 113 offshore and smart grid electricity projects, 100 hydrogen and electrolyser projects and 17 carbon transport infrastructure projects, reflecting a deliberate push to knit national systems into a more integrated, decarbonised Energy Union.

The Commission’s decision responds to what it and other analysts describe as unprecedented investment requirements: a Commission study estimates that Europe will need roughly €1.5 trillion of energy infrastructure investment between 2024 and 2040. According to a CNA press release, the PCI/PMI list, adopted on 1 December 2025, was presented as a way to strengthen connectivity, boost competitiveness and advance decarbonisation while improving energy security across member states.

Industry groups welcomed the emphasis on hydrogen and CO₂ infrastructure. Gas Infrastructure Europe said the December 2025 list “positions these initiatives as strategic enablers for a flexible, resilient, and decarbonised European energy system,” highlighting hydrogen and electrolyser projects as central to developing cross‑border market structures beyond isolated assets. That focus aligns with earlier Commission efforts to scale hydrogen technologies: the Commission flagged IPCEI Hy2Tech and IPCEI Hy2Use in 2022 as precursors for industrial hydrogen innovation and infrastructure deployment.

The new PCI/PMI designation also complements targeted CEF funding rounds. The European Climate, Infrastructure and Environment Executive Agency (CINEA) reported awarding nearly €60 million in June 2025 to five cross‑border infrastructure actions, naming projects such as the Navarra–Landes interconnector, the Italian Hydrogen Backbone and the South Brittany Offshore Wind Connection. CINEA’s 2024 call moreover directed almost €167.5 million to 17 cross‑border renewable actions in October 2024, illustrating how grant windows and the PCI/PMI label are being combined to derisk projects and accelerate deployment.

Commissioners framed the package as essential to the twin tasks of decarbonisation and system resilience. According to Energies Media, Teresa Ribera, Executive Vice‑President for Clean, Just and Competitive Transition, said: “These projects are more than cross‑border infrastructure projects, they are the lifelines of our Energy Union. They empower our EU energy system by unifying the strengths of 27 complementary systems, paving the way for a Europe where green, competitive, and secure energy is not just a promise, but a common reality.” Dan Jørgensen, Commissioner for Energy and Housing, was quoted as saying: “Energy infrastructure is not only the backbone of our Energy Union , it is the foundation of a strong and prosperous Europe. To meet today’s challenges of security, competitiveness, and decarbonisation, Europe needs an energy system that is both resilient and future‑proof. The projects we have chosen to support will play a vital role in delivering cleaner, cheaper and more secure energy to our citizens and businesses.”

Financial commitments are already following policy signals. According to France‑Hydrogene, the Commission has committed more than €1.2 billion to cross‑border energy infrastructure, including a €35.5 million allocation to the H2Med corridor: €28.3 million for the 455 km BarMar subsea hydrogen pipeline linking Barcelona to Marseille and €7.2 million for the 248 km CelZa onshore pipeline between Portugal and Spain. CINEA’s public statements and the GIE response underline that EU funding is being used selectively to accelerate corridors and interconnectors deemed critical for 2030 and 2040 decarbonisation pathways.

For industrial decarbonisation stakeholders the significance is twofold. First, the PCI/PMI label and accompanying finance reduce regulatory and permitting friction, shortening lead times for grid, hydrogen and CO₂ networks that industry will rely on for low‑carbon feedstocks and sequestration. Second, the concentration of projects in hydrogen and CO₂ transport signals a market shift: developers, system operators and large industrial offtakers must now factor cross‑border corridors and interoperable infrastructure into investment and electrification plans if they are to secure supply, offtake and competitive costs at scale.

Challenges remain. Building transnational pipelines, electrolyser clusters and CO₂ transport networks will require sustained capital mobilisation, coordinated permitting across jurisdictions and clarity on regulatory frameworks for hydrogen and carbon transport tariffs. While the Commission’s study sets the scale of investment needed, project sponsors will still depend on national permitting reform, bankable offtake contracts and transparent infrastructure charging regimes to convert PCI/PMI status into delivered capacity.

Taken together, the new list and recent CEF awards mark an acceleration from pilot projects and national schemes to systemic, cross‑border infrastructure planning. For Europe’s industrial decarbonisation agenda, the coming years will test whether regulatory alignment and targeted finance can translate designation into built assets that supply affordable low‑carbon energy, industrial feedstocks and CO₂ management at the scale the Commission’s investment estimates envisage.