10 mins read
Published Jun 20, 2025
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India’s Green Hydrogen Certification Scheme: A Game-Changer for the Energy Transition
India’s push for green hydrogen, zero-carbon hydrogen produced using renewable power, is now backed by a formal certification framework.
Announced on April 29, 2025, by the Ministry of New & Renewable Energy (MNRE), the Green Hydrogen Certification Scheme (GHCS) sets rules to verify that hydrogen is truly “green”. It establishes stringent criteria on emissions, energy sourcing, and monitoring, and it requires independent verification.
In practical terms, producers must rigorously track how their hydrogen is made and provide certified proof of origin. Proponents say the scheme will boost confidence in India’s hydrogen claims, ensuring “transparency, traceability and market credibility” in line with the National Green Hydrogen Mission.
Key Information and Requirements
The GHCS lays out a comprehensive framework for defining and certifying green hydrogen. Some of its core features include:
Scope & System Boundary: The scheme covers all on-site steps of hydrogen production, from water treatment through electrolysis (or biomass conversion) up to compression and purification.
Downstream uses or exports beyond the facility are not in the scope. All direct and indirect emissions (electricity use, process heat, non-renewable inputs, etc.) within this boundary must be counted. The scheme adopts a strict “well-to-gate” approach: producers must show that total lifecycle emissions stay below the defined threshold (currently 2 kg CO₂e per kg H₂). This green hydrogen emissions intensity ceiling is one of the strictest in the world, emphasising on India’s ambitions in developing hydrogen production technologies that are ‘truly’ green.Eligible Pathways: Only two production routes qualify as Green by default: renewable-powered electrolysis and biomass-derived hydrogen. (New methods could be added pending MNRE review.) Importantly, the pathway itself isn’t enough, the plant must be designed and operated to meet the emissions standard continuously.
Production Thresholds & Applicability: Certification is mandatory for any large-scale green hydrogen project that receives government incentives or exemptions, plans to sell/use hydrogen domestically, or has partial domestic offtake. Smaller facilities (≤10 tons/year) are exempt from the requirement (though they can opt in voluntarily). Likewise, pure exporters (100% output shipped abroad) need only report their production and emissions if they took any incentives. In short, if you get Indian subsidies or sell in India, you must get certified.
Renewable Energy Sourcing: Producers must match their hydrogen output with dedicated renewable power. Simply buying generic RECs or carbon credits is not allowed as proof of green energy. The scheme requires either direct PPAs from renewables or participation in green power markets (e.g. India’s Green Day-Ahead market). In practice, a facility must contract enough wind/solar to cover its electrolyser load and document it with the grid operator. Any fossil-derived electricity used becomes part of the emission calculations.
Emission Materiality: Small emission sources (<1% of the 2 kg threshold) can be ignored if all such omissions still total <5%. But if skipping a source would push total exclusions above 5%, it must be included. This guards against selective accounting of minor leaks or losses.
Certification Process: The GHCS establishes a two-stage certification for both plants and hydrogen output. Facilities can apply for a Concept Certificate at the design stage (voluntary proof that their plans meet MRV requirements) and a Facility Certificate after commissioning (to confirm they are ready for compliant operations). For production, hydrogen quantities are certified in 100 kg blocks. Producers may claim Provisional Certificates periodically (based on monthly data) and must obtain an annual Final Certificate to confirm compliance. If the year’s average emissions exceed the threshold, no green certificate is issued for that year’s output.
Monitoring, Reporting & Verification (MRV): Companies must implement a detailed MRV plan, with calibrated sensors and procedures to track feedstock, electricity, hydrogen purity, etc. They must keep five years of records and submit audited data to MNRE’s new Green Hydrogen Portal. Crucially, each producer must engage an Accredited Carbon Verifier (ACV), a body approved by India’s Bureau of Energy Efficiency, to inspect the facility annually and certify its emissions and processes.
Enforcement: MNRE can withdraw certificates for non-compliance. For example, if a provisional audit reveals excess emissions or if a producer misses the deadline to apply for a Final Certificate, the relevant certificate will be cancelled. Repeat offenders face penalties: a second violation in 3 years bars them from provisional certification for a year, and further breaches could lead to longer suspensions.
Tradable Credits: Notably, each Final Certificate bundle (per 100 kg H₂) carries unique IDs and can be used to claim carbon credits under India’s Power Ministry scheme. In future, these might even be traded like “Guarantees of Origin”, as India plans to make green hydrogen certificates tradable in its upcoming carbon market.
Objectives in India’s Hydrogen Strategy
India’s certification scheme is tightly linked to the National Green Hydrogen Mission, which targets 5 million tonnes per year of green H₂ by 2030. In this context, the GHCS serves several goals:
Building Market Credibility: By verifying that hydrogen is low-carbon, the scheme gives buyers confidence. As Minister Joshi noted, it is a “foundational step” to ensure transparency and credibility in green H₂. This combats “greenwashing” risk and helps India demonstrate that it meets global climate standards.
Attracting Investment: Clear certification rules reduce uncertainty for investors and lenders. If developers know exactly how to qualify as “green,” they can secure off-take contracts (or export deals) more easily. Experts suggest this clarity will support India’s ambition to become a hydrogen export hub, making trade more straightforward.
Driving Decarbonisation: The GHCS reinforces the climate motive: hydrogen plants must stay below the 2 kgCO₂e/kg standard set by India’s 2023 Green Hydrogen Standard. In doing so, the scheme ensures that India’s counting of emissions matches its carbon neutrality pledges. By integrating MRV with the certification, even industry players must internalise best practices in emissions management.
Integrating MSMEs and Supply Chains: During the April 2025 launch workshop, MNRE emphasised that small and medium enterprises are critical to India’s hydrogen future. The certification framework signals that even these smaller players (if eligible) will have to meet quality standards, encouraging a professional, sector-wide approach. In turn, it creates new roles in the hydrogen supply chain (verification agents, component suppliers, etc.) that MSMEs can fill.
Implications for Businesses and Professionals
For companies and sustainability teams, the scheme means more rigorous compliance work. Any hydrogen producer tapping government incentives, selling hydrogen domestically, or using special duty exemptions must:
Plan Emissions from Day One: Project designers now need to model and document every emissions source. From choosing a renewable PPA to selecting low-carbon feedstocks, developers must prove compliance at the planning stage (concept/facility certification). Sustainability managers will handle ongoing data collection to ensure the 12-month average stays within limits.
Track Renewable Sourcing: Energy buyers will need transparent contracts. For instance, using electricity from wind farms (like those pictured) must be backed by verifiable PPAs or grid certificates. This may lead to new hedging or PPAs directly linked to hydrogen projects.
Engage Accredited Verifiers: Operations teams must coordinate with BEE-accredited verifiers. These third parties will audit plant processes and emissions, so internal audits must prepare for them. Companies can’t simply self-certify; they need to budget for these professional services.
Maintain Detailed Records: Under GHCS, firms must keep production logs, energy use, water input, and hydrogen purity data. IT and data analytics teams may see expanded roles in building MRV systems. For example, every 100 kg batch must be tagged with a certificate ID, so good database management is key.
Understand Penalties: A non-compliance (even a one-cycle miss) can trigger certificate withdrawal. Businesses will likely create compliance calendars and monitoring dashboards to avoid fines or suspensions. For instance, failing to apply for an annual final certificate on time invites automatic cancellation.
Market Positioning: Sustainability professionals can leverage certification as a selling point. Certified “green hydrogen” will command premium off-take agreements or help in meeting corporate ESG goals. Conversely, non-certified H₂ may fetch lower prices or limited markets. Overall, the certification adds administrative overhead, but it also turns green hydrogen into a more reliable commodity. In practical terms, operations teams must now treat hydrogen production data much like they treat electricity or carbon markets, with tight measurement, digital reporting (MNRE’s portal), and audit trails.
Compliance, Verification and Regulation
In operation, the GHCS relies on a new regulatory mechanism: the MNRE will designate a nodal agency (likely through IREDA or SECI) to run the certification portal and enforce rules.
Key compliance elements include:
Annual Audit Cycle: Each facility’s emissions are evaluated on a financial-year basis (max 12-month blocks). Producers can still self-generate provisional certificates monthly, but only a verified final audit (via an ACV Agency) grants the green label each year.
Accredited Auditors: The Bureau of Energy Efficiency’s approved list of Accredited Carbon Verifiers (ACVs) will verify every producer by March 31 each year. These verifiers follow the scheme’s MRV framework, which references international protocols (e.g. ISO 14064 for GHG accounting and ISO 19870:2023 for hydrogen).
Digital Portal: All certificates (concept, facility, provisional, final) are processed through MNRE’s online portal. The portal will issue unique IDs per certificate and track transfers of hydrogen credits. Its records will be the official registry of green hydrogen claims.
Enforcement Tools: If discrepancies arise, MNRE can withdraw certificates retroactively. There’s a clear penalty ladder: initial breaches cancel the provisional certification; a second breach bars new provisional certifications for a cycle; third breaches could suspend certification privileges. This creates strong incentives to avoid double-counting or data gaps.
Integration with Carbon Market: Unusually, India’s GH certificates are explicitly linkable to carbon trading. A final certificate can be used to claim a power-sector carbon credit. When India’s national carbon market launches (anticipated 2026), these green-H₂ certificates are expected to become tradable “Guarantees of Origin” units, embedding hydrogen into the broader regulatory ecosystem.
For regulators and consultants, the GHCS also signals a need for new guidance and standards. Companies may soon demand clearer interpretation (e.g. how to treat biogenic CO₂ from biomass), pushing standard-setters to refine India’s rules. This is a regulatory sea-change: India has moved from aspirational targets to a legally-enforced framework for hydrogen quality.
Initial Industry Response
Early reactions in the energy sector have been mostly positive, praising clarity and ambition. Analysts point out that requiring certification for subsidy-linked projects aligns India with global trends (much like the EU’s Guarantees of Origin scheme) and may unlock foreign investment by assuring buyers of genuine emissions savings.
Some industry voices stress caution: certification entails costs (auditing, MRV systems) and could slow project timelines as firms adapt. However, the consensus is that clear rules are better than uncertainty. By defining how hydrogen qualifies, the GHCS reduces the risk that a buyer later discovers hidden carbon, thus encouraging more long-term contracts.
In fact, experts in India’s hydrogen ecosystem see the scheme as a signal of government commitment to quality, which many believe is crucial for both domestic use and exports. Any constructive critique so far has focused on implementation details (e.g. how to accredit verifiers quickly, or accommodate emerging hydrogen tech) rather than the scheme’s intent.
Impact on Hydrogen Project Development
The new certification regime will influence how hydrogen projects are structured:
Acceleration of Standardised Projects: Investors may favour projects already aligned with the GHCS criteria. New bids or joint ventures will likely include a clear plan for MRV and accreditation up front. This could favour established players who understand certification, while pushing new entrants to learn compliance quickly.
Encouraging Renewable Coupling: Projects will more strongly couple with wind/solar developments. For example, an electrolyser co-located with a wind farm can now claim a clear benefit. States and utilities may see increased demand for dedicated renewable supply to hydrogen projects, boosting grid procurement of green power.
Data-Driven Operations: Because certification depends on actual operating data, project developers will invest in IoT sensors, data management, and carbon accounting. This digital underpinning could lead to more efficient plant management (e.g. optimising load to keep emissions low).
Financing and Offtake Deals: Lenders and off takers will begin including GHCS compliance clauses in contracts. A term sheet might require “GHCS Final Certificate” as a closing condition. This adds a layer of due diligence but also makes financing more secure, as compliance will be tracked by official channels.
Potential Short-Term Delays: Some small developers worry that the added bureaucracy may temporarily slow project approvals or commissioning as they get up to speed on certification paperwork. Nevertheless, the unified framework is expected to reduce delays overall by preventing fragmented state-by-state rules and by setting clear expectations.
Over time, the certification scheme could speed up hydrogen adoption. By aligning with international norms, it makes Indian hydrogen more attractive in global markets. Within India, it may give policymakers confidence to integrate hydrogen more widely (e.g. in industry or transportation) knowing that the “green” label has teeth.
Alignment with Global Standards
India’s GHCS was explicitly built to mesh with international norms.
By referencing ISO 14064 (GHG accounting) and ISO 19870 (new hydrogen standard), it ensures consistency with global best practices. The 2 kgCO₂/kg emission cap is on the stricter side compared to many jurisdictions, reinforcing India’s commitment to quality. In spirit, the scheme functions like the EU’s hydrogen guarantees-of-origin or Germany’s Zertifizierung für Grüne Gase: a label that travels with hydrogen to prove its source.
This global alignment means Indian green hydrogen, once certified, should be more readily accepted in international markets, easing export ambitions. It also means that multinational corporations with global supply chains can apply similar criteria to Indian output as they do elsewhere. In that sense, the scheme is not an island; it actively references global frameworks, so that a green hydrogen certificate from India carries weight worldwide.
Conclusion
India’s Green Hydrogen Certification Scheme is a milestone in its clean energy journey. By codifying how “green” hydrogen is defined and verified, India is laying a solid foundation for investors and innovators alike.
While businesses will need to adapt to new reporting and auditing processes, the payoff is a more trustworthy market, one where hydrogen truly lives up to its low-carbon promise.
Over time, this structure should accelerate clean hydrogen projects, drive innovation in compliance tools (from digital ledgers to tracking platforms), and reassure all stakeholders that India’s hydrogen economy is built on transparency and rigor.
Looking to get your green hydrogen certified and recognised worldwide?
Our team’s here to help you navigate India’s GHCS and international standards. Let’s talk about how Carbon Central can make emissions tracking, reporting, and proving your low-carbon credentials simpler. Reach out, we’d love to hear from you.
