The EU Competitiveness Council on May 25, 2010 indicated in its conclusions on the EU Clean and Energy Efficient Vehicles Strategy that “hydrogen vehicles remain a valid ultra-low-carbon mobility option in the mediumterm perspective, as affordability of the car and of the fuel is achieved; also NOTES that hydrogen vehicles and electric vehicles are mutually complementary”. It also referred to hydrogen vehicles, together with electric batterty vehicles as a highly promising ultra-low-carbonpower-train technologies, as they have the potential, according to the Council,  to:
a. address the challenges of climate change and fossil fuel dependency;
b. cut local air pollution and noise fro
m transport and  contribute to improving the air quality, in particular in cities and urban zones;
c. enable synergies with smart grids and therefore promote renewable sources of energy and offer a possibility of energy storage;
d. offer an opportunity to revitalise the industrial fabric in Europe by fostering innovation,growth and jobs;
e. offer, in particular if combined with electricity generated from safe and sustainable sources of energy, including renewables, a superior well-to-wheel energy efficiency and can therefore contribute significantly to the objective of transport decarbonisation.
The Council also stressed the need to focus on research excellence in order to ensure that alternative power-trains receive targeted research financing, including innovative energy storage and conversion technologies, such as batteries, fuel cells and the necessary respective infrastructure.
Last but not least the Council “calls on
 the Commission to consult Member States and stakeholders and to rapidly come up with guidelines on potential financial incentives for consumers to buy greenvehicles in order to stimulate the market uptake of clean and energy-efficient vehicles, without giving preference to any particular technology as well as exploring the potential ofpublic procurement and of grouped purchases for large vehicle fleets within the existing legal framework for public procurement. Non-financial incentives, at national or regional level, could also be explored by the relevant actors.”

More info on the Council conclusions can be found here.