Current Development Status, Policy Support and Promotion Path of China’s Green Hydrogen Industries under the Target of Carbon Emission Peaking and Carbon Neutrality

Abstract

The green hydrogen industry, highly efficient and safe, is endowed with flexible production and low carbon emissions. It is conducive to building a low-carbon, efficient and clean energy structure, optimizing the energy industry system and promoting the strategic transformation of energy development and enhancing energy security. In order to achieve carbon emission peaking by 2030 and neutrality by 2060 (dual carbon goals), China is vigorously promoting the green hydrogen industry. Based on an analysis of the green hydrogen industry policies of the U.S., the EU and Japan, this paper explores supporting policies issued by Chinese central and local authorities and examines the inherent advantages of China’s green hydrogen industry. After investigating and analyzing the basis for the development of the green hydrogen industry in China, we conclude that China has enormous potential, including abundant renewable energy resources as well as commercialization experience with renewable energy, robust infrastructure and technological innovation capacity, demand for large-scale applications of green hydrogen in traditional industries, etc. Despite this, China’s green hydrogen industry is still in its early stage and has encountered bottlenecks in its development, including a lack of clarity on the strategic role and position of the green hydrogen industry, low competitiveness of green hydrogen production, heavy reliance on imports of PEMs, perfluorosulfonic acid resins (PFSR) and other core components, the development dilemma of the industry chain, lack of installed capacity for green hydrogen production and complicated administrative permission, etc. This article therefore proposes that an appropriate development road-map and integrated administration supervision systems, including safety supervision, will systematically promote the green hydrogen industry. Enhancing the core technology and equipment of green hydrogen and improving the green hydrogen industry chain will be an adequate way to reduce dependence on foreign technologies, lowering the price of green hydrogen products through the scale effect and, thus, expanding the scope of application of green hydrogen. Financial support mechanisms such as providing tax breaks and project subsidies will encourage enterprises to carry out innovative technological research on and invest in the green hydrogen industry.

Large scale of green hydrogen storage: Opportunities and challenges

“…China has integrated hydrogen into its energy and industrial policies, focusing on green hydrogen production and fuel cell applications [25]. South Korea introduced its "Roadmap for Hydrogen Economy" in 2019, with plans to become a leading player in the global hydrogen market [26].…”

Navigating the Implementation of Tax Credits for Natural-Gas-Based Low-Carbon-Intensity Hydrogen Projects

“…Equally important is the policy landscape that shapes the economic and technological environment within which hydrogen projects are conceptualized and implemented via incentivizing investment decisions by firms [13]. Yang et al provide an in-depth analysis of how renewable energy sources, coupled with effective policy support, are key to unlocking the potential of low-carbon hydrogen production, emphasizing the urgency of integrating these elements for a successful energy transition [14]. This chapter delves into the dual avenues of technological innovation and policy support, highlighting their pivotal roles in the hydrogen sector's evolution.…”

“…As technological pathways to hydrogen production evolve, so does the policy framework supporting these advancements. The case of Anhui Province, China, emphasizes the importance of substantial funding and fiscal policies in achieving sustainable development towards carbon neutrality [14].…”

Policy Implementation Roadmap, Diverse Perspectives, Challenges, Solutions Towards Low-Carbon Hydrogen Economy

“…One of the significant fundamental questions is the necessity and need for energy transition and sustainability policies. The other important aspect is to project a low carbon hydrogen economy with and without policy implementations (Griffiths et al, 2021;Yang et al, 2023;Velazquez Abad & Dodds, 2020;Li & Taghizadeh-Hesary, 2022). Policymakers can have a beneficial influence on both the environment and people by putting into practice a successful sustainable policy or project.…”