India’s minister announces retaliatory barriers for green hydrogen trade

NEW DELHI, July – India will erect barriers to green hydrogen trade in response to restrictions imposed by other countries, the country’s renewable energy ministry said at a conference on Wednesday.

India, as one of the world’s largest emitters of climate-warming gases, is banking on green hydrogen to help it cut emissions and meet its target of net-zero carbon emissions by 2070.

“Green hydrogen is being hampered in some countries (trade and technology). If they erect barriers, we will erect barriers as well, and you will lose access to our market ” R K Sing, Minister of Power and Renewable Energy, stated at the International Conference on Green Hydrogen.

According to renewable energy secretary Bhupinder Singh Bhalla, India is already in talks with Germany about the conditions in its hydrogen purchase tender with the European Union, which members of the Indian industry found restrictive.

The tender, which was issued in December, includes a requirement that the distance between the hydrogen manufacturing plant and the renewable energy plant be 500 kilometers or less, according to an industry source at the conference.

Singh did not elaborate on India’s potential retaliatory barriers. According to him, Indian companies have already made plans to produce 3.5 million tonnes of green hydrogen.

Last year, New Delhi approved a 174.9 billion rupee incentive plan for the fuel, which is produced using renewable energy and emits no greenhouse gases. Prime Minister Narendra Modi has set a target of producing 5 million tonnes of green hydrogen by 2030.

Earlier this year, Singh stated that large subsidies announced by some developed countries for their green hydrogen sectors can distort trade and violate World Trade Organization (WTO) norms.