India, Japan to sign certification mechanism for renewable hydrogen, carbon credits

The G20 Energy Ministers’ Meeting and the Clean Energy Ministerial (CEM) are to be held in Goa in India July 19-22 where countries and companies are expected to deliberate on the way forward for clean energy.

“We are signing the carbon credit mechanism with Japan… If they buy green hydrogen from us one (issue) is about [a] joint certification mechanism that has to be established first,” said Pankaj Agarwal, Power Secretary.

The government was looking to work out such mechanisms with different countries as well because a common mechanism and standard was the key to developing the hydrogen trade, Agarwal said.

India’s National Green Hydrogen Mission released in January targets production of 5 million mt of renewable hydrogen by 2030 with a 10% market share of the global hydrogen trade.

India notified its Carbon Credit Trading Scheme in June to begin a consultation process that would shape the carbon market with trades expected to start around 2025.

Agarwal said the steering committee, which would be at the helm of the carbon market development and operations, would hold its first meeting in August.

Between 2010 and 2022, India issued 278 million credits in the Voluntary Carbon Market, accounting for 17% of global supply, according to analysts at S&P Global Commodity Insights.

Power Ministry’s Additional Secretary Ajay Tewari said the Japanese deal would be calibrated in such a manner that India does not compromise its climate goals.

“Japan will get an advantage to meet their net zero goal. But we will only transfer as many carbon credits as that which does not hamper our goals under our Nationally Determined Contributions,” Tewari said.

Platts, part of S&P Global Commodity Insights, assessed Qatar hydrogen produced via alkaline electrolysis (including capex) at $2.63/kg July 13, up 1.15% month on month.

It assessed Japan hydrogen produced via alkaline electrolysis (including capex) at $5.44/kg July 14, up 27% from a month ago.

Series of meetings

The four-day conventions in the tourist state of Goa will see a series of meetings where large companies such as Linde, Siemens and Cummins are also expected to participate.

The topics will cover technological advancements, market development and policy making.

“The CEM will be working on the various dimensions of clean energy technologies, the economics, the financing and all of the related aspects,” Agarwal said. “We are expecting more than 29 countries to participate in CEM.”

In parallel, G20 Working Group discussions will be held “where we will be working on the communique on energy transition,” Agarwal added.

India has hosted three meetings of the energy transition working groups under G20 and Goa will hold the fourth one.

On the sidelines, various partnerships are expected to be signed.

The CEM website mentions the launch of a Global Biofuel Alliance, the CEM Clean Energy Maritime Hub and the International Hydrogen Trade Forum.

Tewari said the US, Brazil and the UAE would be part of the Biofuel Alliance with more nations expected to join.

There will be ministers from 39 countries for CEM and in all, 1,000 delegates from all over the world will be converging together, he added.

Tags: Carbon Credit, Hydrogen, Renewable Energy