The European Union (EU) approach to fuel cell development should be viewed within the wider context of energy and environment policy. The energy policy is built on four main pillars - ensuring security of supply including the long term substitution of fossil fuels, improving competitiveness, achieving greater sustainability, and developing clean, efficient energy technologies. The prospect of fuel cells, as well as other technologies, to contribute positively to all these aspects of energy policy is widely recognised. Fuel cells can exploit diversified primary energy sources including renewable, and offer intrinsically clean, highly efficient energy conversion. Over successive Framework Programmes for Research, the European Commission has increased its financial support to fuel cell RTD&D. The recently launched Fifth Framework Programme introduces a problem-solving approach in which fuel cells will have to compete for funding support by demonstrating their ability to achieve ambitious cost and performance targets.