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Green Hydrogen: China’s Crucial Step Towards Carbon Neutrality

Arnes BiogradlijaBy Arnes Biogradlija28/06/20233 Mins Read
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Green hydrogen, an eco-friendly energy carrier, is emerging as a key component in China’s strategic ambition to peak its carbon emissions by 2030 and achieve carbon neutrality by 2060, according to a recent report launched by the World Economic Forum at the 14th Annual Meeting of the New Champions in Tianjin, China.

A Roadmap for Progress

The report, titled “Green Hydrogen in China: A Roadmap for Progress,” developed in collaboration with Accenture and the China Hydrogen Alliance, elucidates the hurdles faced by China’s burgeoning green hydrogen industry. It pinpoints six critical areas of focus, including cost, infrastructure, market demand, industry standards and certification, technology, and evolution and cooperation.

The paper proposes 35 concrete actions to address these challenges, to be carried out in three phases from the present to 2030. As the world’s largest producer of hydrogen, with a production of approximately 33 million metric tons in 2021, and a projected production of 43 million tons by 2030, China’s potential in green hydrogen is substantial.

China’s Carbon-Neutral Ambition

China has earmarked the end of the current decade as the peak for its carbon emissions, signaling the commencement of comprehensive decarbonization across multiple industries starting in 2030. As far back as 2022, the National Development and Reform Commission and the National Energy Administration jointly announced a 15-year plan for the development of the hydrogen energy industry. This initiative aimed to increase the share of renewable energy in hydrogen production, as reported by the China Economic Net.

Green Hydrogen in the Energy Mix

According to the China Hydrogen Alliance, green hydrogen is expected to significantly augment its presence in the country’s energy mix, rising from 1 percent in 2019 to an anticipated 10 percent by 2030. This growth equates to an almost thirtyfold increase in market scale.

However, despite this promising projection, the report acknowledges that green hydrogen’s contribution to China’s energy transition has been negligible due to persistent challenges surrounding cost, infrastructure, and demand. In fact, in 2021, green hydrogen comprised less than 0.1% of the country’s total hydrogen production and consumption.

With robust policy guidance and incentives, China has the potential to bring green hydrogen technologies to the commercial market, consequently transforming its industrial system and the broader economy. However, this requires a significant emphasis on developing the sector through industrial, regional, and global collaborations.

Liming Chen, Chair of Greater China, World Economic Forum, emphasizes the necessity of cross-sector partnerships, stating, “The industry is indeed at an initial stage, yet the public and private sector leaders in China cannot underestimate how catalytic the role of green hydrogen could be. We need partnerships across sectors, from upstream to downstream, to make sure we accelerate the momentum.”

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