This article examines China’s approach to developing hydrogen and how its evolving industrial policy could make the fuel viable.
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Q&A: Can China turn hydrogen into its next clean-energy industry? - Carbon Brief
Abatify Summary
Nature & Climate Perspective
**China's strategic pivot to green hydrogen holds the potential to massively displace industrial coal emissions, yet current reliance on coal-based 'grey' hydrogen threatens near-term decarbonization goals. **
- Displacing grey hydrogen with green hydrogen is critical to achieving net-positive carbon sequestration outcomes across China's heavy industrial hubs.
- The scaling of hydrogen infrastructure must align with ICVCM Core Carbon Principles (CCPs) to ensure robust quantification of emissions reductions and prevent double-counting of renewable inputs.
- Large-scale electrolyzer deployment requires significant freshwater resources, posing localized ecological risks to water-stressed northern provinces where hydrogen projects are concentrated.
Market & Policy Outlook
**State-driven scale-up of China's hydrogen infrastructure will redefine global clean energy supply chains and significantly impact corporate Scope 3 decarbonization pathways. **
- Provincial and national policies are building a regulatory foundation that could eventually integrate hydrogen into Article 6.2 and 6.4 mechanisms for ITMO transfers.
- Subsidized Chinese electrolyzer manufacturing is poised to lower global capital costs, driving market pricing and financial liquidity for clean tech in a manner similar to the solar PV boom.
- Multi-national corporations operating in China can leverage green hydrogen to meet stringent SBTi targets, relying on verified I-RECs to prove the zero-carbon origin of the energy utilized.
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