Organised by: GH2 India 

Brussels, November 19, 2024 – During EU Hydrogen Week, stakeholders from India and the European Union convened at the Certification Roundtable to tackle one of the most pressing issues in the green hydrogen sector: certification. The discussion centered on the stringent Renewable Fuels of Non-Biological Origin (RFNBO) standards under the EU’s Renewable Energy Directive (RED) and the pathways to align India’s burgeoning green hydrogen industry with these requirements. 

With the EU aiming to import an additional 10 MMT by 2030, compliance with RFNBO criteria is critical for Indian producers to access the European market. 

Certification serves as the foundation for ensuring that hydrogen production aligns with decarbonization goals. The EU’s RFNBO criteria focus on three key aspects: 

Additionality: Ensuring renewable energy sources for hydrogen production are newly added, not repurposed from existing capacity. 

Temporal Correlation: Matching hydrogen production with renewable energy generation, with a shift from monthly to hourly requirements by 2030. 

Geographical Correlation: Demonstrating a direct connection between renewable energy sources and hydrogen production facilities. 

Indian stakeholders face the challenge of adapting their projects to these requirements while balancing economic viability and technical feasibility. 

Key Challenges Discussed 

Temporal and Geographical Correlation 

Indian developers raised concerns over the transition to hourly correlation post-2030, citing increased costs and the need for substantial infrastructure upgrades. Many called for a phased approach to give developers and investors time to adapt. 

India’s unified grid system was highlighted as a unique feature, with participants advocating for its recognition as a single bidding zone under EU standards. This, they argued, would simplify compliance with geographical correlation criteria. 

Regulatory Uncertainty and Long-Term Risks 

Participants emphasized the importance of regulatory stability for long-term project financing. The lack of clarity on evolving standards creates financial risks, prompting calls for “grandfathering clauses” to protect projects from changes in regulations after they are operational. 

The Need for Early Engagement 

Developers shared their experiences with pre-certification processes, emphasizing the importance of integrating certification requirements into project planning from the outset. Engaging stakeholders early, particularly during data collection and project design, was identified as critical to avoid delays and complications. 

Guarantees of Origin (GOs) and Verification 

Discussions focused on leveraging GOs as a tool to verify renewable energy claims. Indian stakeholders were encouraged to adopt such systems to align with EU practices, ensuring credibility and transparency in green hydrogen certification. 

Balancing Decarbonization with Feasibility 

While participants agreed on the need for stringent certification standards to prevent greenwashing, they emphasized the importance of balancing these requirements with economic realities. Developers called for a pragmatic approach that supports decarbonization without imposing prohibitive costs, particularly in nascent markets like India.  

As the green hydrogen economy gains momentum, the EU and India have a unique opportunity to set global benchmarks for certification and trade. By fostering collaboration, building trust, and aligning standards, both regions can drive innovation and create a robust foundation for the global green hydrogen market.