India's Green Hydrogen Boost: Certification Scheme and Carbon Credit Trading
Key Ideas
- India introduces certification scheme under National Green Hydrogen Mission to ensure green hydrogen quality and credibility for global export.
- Bureau of Energy Efficiency launches offset mechanism under Carbon Credit Trading Scheme to incentivize hard-to-abate sectors to use green hydrogen.
- High production costs remain a challenge, but government identifies key hubs for green hydrogen production at international ports like Kandla, Paradip, and Tuticorin.
- Stricter standards for water use in electrolysis highlighted under carbon offset mechanism, emphasizing sustainable water practices for green hydrogen production.
India has taken significant steps to boost its green hydrogen sector by introducing a certification scheme under the National Green Hydrogen Mission and rules for claiming emission offsets through the Carbon Credit Trading Scheme (CCTS). The scheme, launched by Union Minister Pralhad Joshi, aims to measure, monitor, report, verify, and certify green hydrogen production to ensure its quality and credibility for global export. The certification boost is expected to increase the export appeal of Indian green hydrogen, with agreements already in place with countries like Japan for supply. Despite the positive outlook, high production costs remain a hurdle, prompting the government to identify key production hubs at international ports.
The offset mechanism introduced under CCTS aims to incentivize hard-to-abate sectors to switch to green hydrogen. Additionally, the carbon offset guidelines emphasize sustainable water practices for electrolysis, limiting water consumption to ensure it does not displace other uses. The National Green Hydrogen Mission, with an allocated budget of nearly Rs 20,000 crore, supports initiatives for domestic electrolyser manufacturing, green hydrogen production, and sector-specific pilot projects. Overall, the focus on certification, carbon credits, and sustainable practices in green hydrogen production signals a positive momentum towards a greener energy future in India.