What Is the Policy Effect of Coupling the Green Hydrogen Market, National Carbon Trading Market and Electricity Market?

Abstract

Green hydrogen has become the key to social low-carbon transformation and is fully linked to zero carbon emissions. The carbon emissions trading market is a policy tool used to control carbon emissions using a market-oriented mechanism. Building a modular carbon trading center for the hydrogen energy industry would greatly promote the meeting of climate targets. Based on this, a “green hydrogen market—national carbon trading market–electricity market” coupling mechanism is designed. Then, the “green hydrogen market—national carbon trading market–electricity market” mechanism is modeled and simulated using system dynamics. The results are as follows: First, coupling between the green hydrogen market, carbon trading market and electricity market can be realized through green hydrogen certification and carbon quota trading. It is found that the coupling model is feasible through simulation. Second, simulation of the basic scenario finds that multiple-market coupling can stimulate an increase in carbon price, the control of thermal power generation and an increase in green hydrogen production. Finally, the proportion of the green hydrogen certification, the elimination mechanism of outdated units and the quota auction mechanism will help to form a carbon pricing mechanism. This study enriches the green hydrogen trading model and establishes a multiple-market linkage mechanism.

Coal-Fired Power Plants Using Ammonia for Flexibility Enhancement under Carbon Control Strategies: Status, Development, and Perspectives

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

“…Therefore, national and sub-national (i.e., regional) regulatory bodies should work to adopt harmonised policy instruments or risk being excluded from accessing international hydrogen markets, regardless of whether a top-down (i.e., national policy-driven) or bottom-up (i.e., industry demand-driven) approach to standards-setting is observed which is also shown in Figure 9 (Dillman & Heinonen, 2022;Park et al, 2022;Krozer, 2019;Rahimirad & Sadabadi, 2023;Ajanovic et al, 2022) . The regulations and standards required for low carbon hydrogen based on a research and development perspective are showcased in Table 3 (Sharma et al, 2023;Wang et al, 2022;Babonneau et al, 2022;Chu et al, 2022).…”

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