Fuelling Change: Broadening the Scope of Hydrogen Criteria for the Green Energy Transition
In a significant development for the green investment landscape, the Climate Bonds Initiative is pleased to announce the expansion of its certification criteria from Hydrogen Production to encompass Hydrogen Delivery Infrastructure. This broadening aligns with the Paris Agreement's objectives and is in line with the EU Taxonomy, reinforcing our commitment to fostering sustainable investment in the hydrogen sector.
Hydrogen, emerging as a pivotal element in the global energy transition, holds immense potential in decarbonising some sectors of the economy traditionally reliant on fossil fuels. However, the production of hydrogen is just one facet of a broader ecosystem. The delivery infrastructure – encompassing conversion, transportation, and storage – plays a crucial role in realising hydrogen's low-carbon promise. Given the energy-intensive nature of hydrogen delivery, this expansion aims to ensure that the entire value chain adheres to stringent low-carbon benchmarks, thus maintaining the integrity of hydrogen as a sustainable energy source.
Key Components of the Hydrogen Criteria
The Criteria's development involved a collaborative effort of the Technical Working Group (TWG) and the Industry Working Group (IWG), drawing on global expertise across academia, policy, and industry. This collaboration has been instrumental in crafting a pragmatic, robust set of criteria that balances scientific rigour with industry practicalities.
The expanded criteria encompass the following key elements:
- Identifying Eligible Assets and Projects: This foundational aspect ensures that investments are directed towards projects with significant emissions reduction potential, thereby contributing meaningfully to the sustainability agenda.
- Deploying Eligibility Criteria: Through detailed eligibility criteria, the framework rigorously assesses projects for their environmental impact, ensuring that only those adhering to the highest standards are certified.
- Establishing Metrics and Tools for Monitoring: This ensures ongoing compliance and transparency, essential for maintaining investor trust and accountability.
The Last Word
This expansion of the Hydrogen Production and Delivery Criteria represents a significant move towards fostering sustainable investment in green energy. Providing a clear, science-based framework, it not only in line with but also surpasses the requirements of the EU Taxonomy and is consistent with the objectives of the Paris Agreement's 1.5°C target, thereby encouraging collaboration among investors, policymakers, and industry stakeholders. This approach aims to enhance hydrogen's contribution to the green energy transition, standardising sustainable practices across its value chain and creating new opportunities for green investments.
‘Til Next Time,
Climate Bonds.
