NITI Aayog, on June 29, released a report titled 'Harnessing Green Hydrogen-Opportunities for Deep Carbonisation in India'. The Aayog proposed that the government should set up hydrogen corridors and provide grants and support to entrepreneurs to promote its production, storage and export.
What's The Report About?
The report says that investment in green hydrogen could be facilitated through demand aggregation and dollar-based bidding. Electrolysis of water using renewable energy leads to the production of green hydrogen, and it could also be produced from biomass. The report, which NITI Aayog has prepared along with Rocky Mountain Institute, says that three hydrogen corridors should be developed across the country based on state grand challenges.
NITI Aayog believes that green hydrogen would play an immense role in the country's move towards its decarbonisation targets. India also happens to be one of the large economies that have committed to net zero-emission targets.
NITI Aayog CEO Amitabh Kant said, "Green hydrogen can help India significantly reduce its dependence on imported fuel and, hence, inter-ministerial interventions are required to promote the production and the usage of green hydrogen", as reported by Economic Times.
What Should The Government Do?
The governments should provide grants and loans to start-ups and projects and support entrepreneurs through incubators and investor networks. It should also put in place regulations that could manage first-mover risks. The report added that creating demand in niche markets and attracting private investment would be one of the biggest priorities, and the government could use a mix of public procurement and purchase incentives to accomplish this.
It opined that radical improvements in the speed of regulatory clearances and preferential treatments in public tenders would help local manufacturing. The states should be encouraged to launch their green hydrogen policies to complement the efforts at the national level. It suggested that the government initiate green hydrogen standards and a labelling programme.
The report aims to serve as a critical knowledge base for India's Green Hydrogen Policy discourse.
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