What happened and why does it matter?
India has recently expanded its green hydrogen diplomacy through multiple bilateral engagements, including agreements with the European Union, Japan, and Gulf countries to develop supply chains and technology partnerships. These developments are situated in the wider context of National Green Hydrogen Mission, launched in 2023. It aims to make India a global hub for the production, use, and export of green hydrogen. This matters for three key reasons. First, it strengthens India’s energy security by reducing dependence on imported fossil fuels. Secondly, it supports India’s climate commitments, including its net-zero target by 2070. Lastly, it positions India as a major player in the emerging global clean energy economy.
Background
Green hydrogen refers to the hydrogen produced through electrolysis using renewable energy sources such as solar and wind. Which makes it a low emission alternative to fossil fuels. India, which primarily imports substantial share of its crude oil and natural gas requirements, has faced concerns around energy security and price volatility for a long time. Therefore, in response, the Government of India launched the National Green Hydrogen Mission in 2023 in order to promote the domestic production, create demand across sectors and position India as a global hub for green hydrogen exports. This mission includes incentives for electrolyser manufacturing, pilot projects and infrastructure development.Globally, hydrogen has emerged as a key component of the clean energy transition with major economies such as the European Union, Japan and South Korea looking for investment in import partnerships and supply chains. This has led to the gradual formation of an international hydrogen market, hence intensifying competition and collaboration between countries.
Globally, hydrogen has emerged as a key component of the clean energy transition with major economies such as the European Union, Japan and South Korea looking for investment in import partnerships and supply chains. This has led to the gradual formation of an international hydrogen market, hence intensifying competition and collaboration between countries.
What are the implications?
India’s green hydrogen diplomacy has geopolitical, economic, strategic and environmental significance. There are certain challenges which will be discussed at the end of this section. Geopolitically, India’s hydrogen partnerships with the EU and East Asia deepen strategic ties with energy-importing regions, while enhancing its leadership credibility among Global South countries in the phase of energy transition. In economic terms, the hydrogen push is likely to attract investments in electrolysers, storage, and transport infrastructure, creating new industrial ecosystems and employment opportunities.While incorporating strategic relevance, it is more important in contemporary geopolitical canvas.Over time, green hydrogen can reduce India’s dependence on Middle Eastern oil, increasing energy autonomy and resilience. Further, it enables decarbonisation of hard-to-abate sectors like steel, fertilisers, and shipping, supporting climate goals, hence, incorporating environmental significance as well. There are many challenges as well such as high production costs, infrastructure gaps, and limited access to advanced technologies and finance that need to be addressed through technological advancements, increased public private partnership in infrastructural development and shift towards green financing.
What next?
Going forward, India’s success in green hydrogen diplomacy will depend on its ability to scale production efficiently while reducing costs through technological innovation and economies of scale. Therefore developing integrated infrastructure such as covering storage, transport and export terminals is critical to participating in global supply chains. The country must also work towards deepening long-term bilateral and multilateral ties and partnerships to secure stable demand particularly from energy-importing regions along with policy support through subsidies, regulatory clarity and incentives for private sector participation is essential. Furthermore expanding access to green finance and fostering public - private partnerships will also help India accelerate deployment and consolidate its position in the emerging global hydrogen economy.
References
Ministry of New and Renewable Energy (MNRE), Government of India. (2023). National Green Hydrogen Mission. Retrieved from https://mnre.gov.in/national-green-hydrogen-mission/
International Energy Agency (IEA). (2023). Global Hydrogen Review 2023. Retrieved from https://www.iea.org/reports/global-hydrogen-review-2023
European Commission. (2023). EU–India cooperation on clean energy and green hydrogen.Retrieved from https://energy.ec.europa.eu/topics/international-cooperation/keypartnercountries-and-regions/india_en
Ministry of New and Renewable Energy (MNRE), Government of India. (2023). Memorandum of Understanding between India and the United Arab Emirates on cooperation in green hydrogen. Retrieved from https://mnre.gov.in
Business Standard. (2024). India–EU roadmap for green hydrogen cooperation. Retrieved from https://www.business-standard.com