India open to allowing carbon credits transfer to nations that buy green hydrogen from us: RK Singh

Singh also spoke about the progress of the other sectors under renewable energy —  bids for offshore wind energy, the green hydrogen mission, and solar energy.

In June, the Centre formed a committee to oversee the country's carbon market. The committee is responsible for ensuring carbon credits, which represent the reduction of greenhouse gas emissions, are issued and traded fairly.

The notification highlights the central government's decision to establish a domestic voluntary market mechanism known as the Green Credit Programme. This programme was initially announced in the Union Budget 2023-24, with the objective of encouraging individuals and companies to adopt responsive actions that prioritise environmental well-being.

The Green Credit Programme will be implemented under the purview of the Environment Protection Act, serving as a framework to motivate and reward eco-friendly behaviour.

Singh on Friday said the rules put in place for carbon credits, the global sale of credits may be permitted in some sectors, depending on the technology.

Hydrogen can be used as a fuel. It is made by splitting water (H2O) into two molecules — hydrogen and oxygen — via electrolysis, which is an electrical process. If the devices (electrolysers) used for the same, are powered by renewable energy, then the product is green hydrogen — a fuel that is free of greenhouse emissions.

Singh said India has been running pilot projects and developing new processes under its Green Hydrogen Mission, which aims at reducing the carbon footprint of Indian products that are being exported. He added that the green hydrogen programme is taking off well and aims to manufacture electrolysers to ensure India's renewable energy plans are on track. He said pump hydro will also bring down the cost of renewable energy.

"We are levying taxes on domestic industry to discourage carbon content, have to levy similar duties on imports," he said.

The Green Hydrogen programme is taking off well, the aim is to manufacture electrolysers to ensure our RE plans are on track, the minister said.

In January this year, the Union Cabinet approved an initial outlay of Rs 19,744 crore for the National Hydrogen Mission, with incentives worth more than Rs 17,000 crore for electrolyser and green hydrogen manufacturing in the country and Rs 400 crore for developing green hydrogen hubs.

In June, India introduced two schemes to incentivise the manufacturing of electrolysers and green hydrogen as part of its Strategic Interventions for Green Hydrogen Transition (SIGHT) programme worth Rs 17,490 crore under the National Green Hydrogen Mission.

The power minister said India will soon also see bids for offshore wind energy. The coastlines of Gujarat and Tamil Nadu have a good potential for tapping into the offshore wind energy segment.

In May, the ministry of new and renewable energy had said India's first offshore wind seabed lease tender would be floated soon.

India has been slow in developing offshore wind projects even though the country has a coastline of 7,600 km and significant potential to set up offshore wind energy projects.

BS Bhalla, the MNRE secretary, in May, had said the first phase of the projects would be located along the coast of Gujarat and Tamil Nadu, with a combined potential of 70 GW.

The power minister said the solar power capacity is set up after the letter of award (LOA) is given to a company and the power purchase agreements (PPA) are tied.

He said people want to get a PPA with the government companies when any solar capacity is to be set up.

Singh said he hopes for a day when people will install solar capacity to sell in their states and may get a safety net too in the future.

However, he clarified there is no shortage of electricity. "No discom has a right to deny power to consumers," he said.

And on thermal power plants, he said the biomass reaching them is insufficient as supply chains have not yet developed for pellets. He added that India needs to set up pelletisation machines for better use of biomass.