India has launched the country’s Green Hydrogen Certification Scheme (GHCI), laying the regulatory foundation for what it hopes will become a global export market worth $70bn and a cornerstone of its domestic clean energy strategy.
Unveiled by Union Minister of New and Renewable Energy Prahlad Joshi, the GHCI defines what qualifies as ‘green’ hydrogen, introduces a multi-tiered certification system, and sets a maximum lifecycle emissions threshold of 2kg CO2 equivalent per kg of hydrogen. The scheme applies to hydrogen produced via electrolysis or biomass conversion, using renewable energy only.
Certification will be mandatory for all producers except those manufacturing hydrogen exclusively for export. The framework includes four levels of certification: concept, facility-level, provisional, and final, with the final certificate required to access government incentives or sell hydrogen in the domestic market.
The scheme is designed to promote transparency and global credibility, with emissions tracked under a monitoring, reporting, and verification protocol aligned to international standards such as ISO 19870:2023.
Producers must retain emissions data for at least five years and undergo verification by accredited carbon verification agencies appointed by India’s Bureau of Energy Efficiency.
Final certificates will also enable access to carbon credits under India’s upcoming carbon credit trading scheme, with credits expected to become tradable once the national carbon market launches in 2026.
The GHCI forms part of India’s broader official green hydrogen push, backed by an initial outlay of $2.37bn. Of this, $2.1bn is earmarked for strategic interventions – government subsidies for green hydrogen production and incentives to boost domestic manufacturing of electrolysers. An additional $176m will go towards pilot projects, $48m for R&D, and $46m for other unspecified mission components.
Under the country’s SIGHT programme (Strategic Interventions for Green Hydrogen Transition), the government has already awarded 412,000 tonnes a year of green hydrogen production capacity to 10 companies, backed by subsidies worth $366m. A further 780,000 tonnes a year of green hydrogen production capacity will be allocated in 2025.
India has set a national target of producing five million metric tonnes of green hydrogen per year by 2030 and is positioning itself as a low-cost global supplier. The World Bank has estimated that India could become one of the world’s leading producers. Last year, the bank provided a $1.5bn loan to accelerate development of the green hydrogen market, adding to an initial $1.5bn loan granted in 2023.
Speaking at the release of India’s Budget 2025, Joshi said, “Very shortly we are going to reach 75GW [of renewable energy capacity] and in two or three years I’m quite confident that we will reach 100GW.”
He also said that micro, small, and medium enterprises would play a key role in building a self-reliant green hydrogen ecosystem.
Certificates under the GHCI will be issued in blocks of 100kg and carry nominal fees. The ministry in charge of new and renewable energy will oversee compliance, with penalties in place for producers that fail to meet emissions thresholds or complete the certification process.
The GHCI also aims to support long-term export growth to regions such as Europe and Asia. During the announcement, Joshi said that agreements have been signed by several Indian companies to supply a total of 412,000 tonnes of green hydrogen to Singapore and Japan.
Challenges and considerations
Despite the ambitious framework, several challenges could impact the scalability of India’s green hydrogen sector:
- High production costs: Green hydrogen production in India currently costs between $4 and $5 per kg. This is roughly twice the price of grey hydrogen, making it less competitive without substantial subsidies.
- Infrastructure limitations: The country lacks adequate infrastructure for hydrogen transport, storage, and distribution, which is critical for large-scale adoption.
- Renewable energy intermittency: The variability of renewable energy sources such as wind and solar poses challenges for consistent hydrogen production.
- Water resource constraints: Producing green hydrogen via electrolysis requires a large amount of water, which could strain regions already facing water scarcity. Nine litres of water are needed to produce 1kg of hydrogen. Although India has a large population (18% of the world’s), it only has a tiny percentage of its water resources (4%). The country already faces a severe water crisis and, by 2031, India’s per capita water availability is set to drop to 1,367 cubic metres from an already-low 1,486 cubic metres in 2021, according to the Ministry of Water Resources. A level below 1,700 cubic metres indicates water stress, with 1,000 cubic metres being the threshold for water scarcity.
- Accessibility for smaller enterprises: The complex certification process and high capital requirements may be burdensome for micro, small, and medium enterprises, potentially limiting their participation in the green hydrogen economy.
