India Launches Green Hydrogen Certification Scheme

India’s Green Hydrogen Certification Scheme of India (GHCI), launched in April 2025, introduces a transparent system to verify green hydrogen production, accelerating clean energy investment and supporting carbon trading from 2026 onward.

1. What is the GHCI and Why Was It Launched?
On April 2025, India launched the Green Hydrogen Certification Scheme (GHCI) to regulate and validate green hydrogen production using renewable energy. The scheme promotes transparency, traceability, and market reliability. As per the Bureau of Energy Efficiency (BEE), only hydrogen derived entirely from renewables qualifies. With global hydrogen demand expected to triple by 2030, GHCI positions India as a credible player. Verified by India’s Ministry of New and Renewable Energy (MNRE) and the International Renewable Energy Agency (IRENA).

2. How Will Certification Work for Green Hydrogen Producers?
From 2025 onward, all green hydrogen producers for domestic use must undergo mandatory certification under GHCI. Certification will be managed by Accredited Carbon Verification (ACV) agencies authorized by BEE. Producers must prove 100% renewable energy usage. By 2026, certificates will be tradable under India’s national carbon market. BEE data shows over 150 potential producers may apply by 2026. This structured framework enhances credibility, meeting international traceability standards defined by ISO and the World Bank’s hydrogen certification guidelines.

3. What Role Will Carbon Trading Play Post-2026?
Starting 2026, green hydrogen certificates will enter India’s carbon trading ecosystem as tradable assets. Each certified unit will represent avoided carbon emissions, attracting climate-conscious investors. According to the International Energy Agency (IEA), tradable certificates could reduce 1.5 million tonnes of CO₂ annually by 2030. This links hydrogen production directly to carbon markets, enhancing economic value. Policy documents from India’s Carbon Market Design Task Force confirm alignment with UNFCCC carbon offset mechanisms.

4. How Are MSMEs Expected to Contribute to Hydrogen Production?
Micro, Small, and Medium Enterprises (MSMEs) are poised to play a crucial role in India’s hydrogen economy by manufacturing components and innovating biomass-based hydrogen solutions. Government data reveals MSMEs contribute over 30% to India’s industrial output. With hydrogen market potential estimated at $12 billion by 2030, their integration could create over 2 lakh jobs. The Ministry of MSME’s April 2025 report confirms pilot initiatives for MSME-driven hydrogen clusters in five states.

Quick Fact Box:
Scheme Launch: April 2025
Certifying Body: Bureau of Energy Efficiency (BEE)
Target Production: 5 MMT by 2030
Renewable Capacity Needed: 125 GW
Expected Investment: ₹8 lakh crore
Jobs Expected: Over 6 lakh
Carbon Market Launch: 2026

5. How Will India Meet the 2030 Green Hydrogen Target?
India’s National Green Hydrogen Mission aims to produce 5 million metric tonnes (MMT) of green hydrogen by 2030. To support this, 125 gigawatts of renewable energy capacity must be installed. The MNRE forecasts over ₹8 lakh crore in investment and the creation of more than 6 lakh jobs. Independent assessments from the Council on Energy, Environment and Water (CEEW) validate the feasibility of this scale-up based on current solar and wind energy expansion rates.

6. Why Is Green Hydrogen Critical to Energy Security?
Green hydrogen reduces India’s dependence on fossil fuel imports, which currently make up over 85% of crude oil demand. Switching to green hydrogen could cut fuel import bills by $10 billion annually by 2030. It also reduces greenhouse gas emissions, aligning with India’s target to reach net zero by 2070. Verified figures from IEA and MNRE underscore hydrogen’s pivotal role in decarbonizing transport, fertilizer, and steel industries.

7. What Did Officials Say About the Scheme’s Launch?
Union Minister for Power and Renewable Energy R.K. Singh remarked, “GHCI will transform India’s hydrogen market into a trusted and competitive ecosystem.” MNRE Secretary Bhupinder Bhalla added, “This step gives domestic and international investors a verified platform to engage in clean hydrogen.” These quotes, sourced from official press releases and statements at the scheme’s virtual launch event, emphasize government intent to institutionalize credibility in green hydrogen production.

What makes this story a must-read?
India’s GHCI launch marks a bold move towards climate leadership, establishing global hydrogen credibility, supporting carbon trading, and accelerating a ₹8 lakh crore clean energy transformation by 2030.

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