A green hydrogen credit framework for international green hydrogen trading towards a carbon neutral future
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Abstract
Hydrogen as a low-carbon clean energy source is experiencing a global resurgence and has been recognized as an alternative energy carrier that can help bring the world to a carbon neutral future. However, getting to scale is one of the main challenges limiting the growth of the hydrogen economy. In particular, the high cost of transporting green hydrogen is bottlenecking the international trading and wider adoption of hydrogen for global carbon natural objectives. In order to explore incentives for the global hydrogen economy and develop new pathways towards the carbon neutral future, the concept of hydrogen credit is proposed by this research and a framework of trading hydrogen credits similar to carbon credits in the international market is established. This research aims to contribute to the overall uptake of green hydrogen financially rather than relying on the physical production, transportation, and storage of hydrogen. Case studies are presented to demonstrate the feasibility and efficiency of the proposed hydrogen credit framework, as well as the great potential of a global hydrogen credit market.