By setting strict emissions limits and traceable standards, India’s new certification scheme aims to curb greenwashing, reassure investors, and unlock carbon market synergies

At a time when global trade in clean fuels is poised to become both a climate imperative and a geopolitical opportunity, India’s Green Hydrogen Certification Scheme is more than just a bureaucratic box-ticking exercise. It is a bid to shape the rules of the game and ensure Indian producers don’t get left behind.

Unveiled by Union Minister Prahlad Joshi and aligned with global norms, the scheme outlines what qualifies as green hydrogen, how emissions will be measured and verified, and how certification can unlock incentives and carbon credits.

But beyond the compliance architecture lies a deeper agenda: establishing credibility in climate claims, boosting investor confidence, and ensuring India’s hydrogen is not just green in label – but, trade-ready, subsidy-eligible and export-competitive.

From Green Claims To Green Credibility
The hydrogen industry has long faced a trust deficit. Without common definitions, even clean hydrogen risks being lumped in with carbon-intensive alternatives. India’s scheme confronts this head-on by setting a clear, stringent threshold:

Green hydrogen emits no more than two kg of CO₂ equivalent per kilogram of hydrogen produced, averaged over 12 months. This is lower than many international benchmarks and could serve as a quality signal in tight global markets.

“India’s certification scheme has similar elements and framework as those in the EU and Korea,” said Prashant Choubey, President – Business Development, Avaada Group. “This will go a long way to support and trace green attributes of hydrogen produced in India for both export and the domestic market.”

By tying certification to measurable lifecycle emissions and aligning with standards like ISO 19870:2023, India is attempting to put an end to greenwashing—the practice of marketing products as environmentally friendly without substantive proof.

A Four-step Filter For Green Claims
The certification process itself is rigorous and multi-layered, spread across four distinct stages:

1-Concept Certificate – Granted during the design phase
2-Facility-Level Certificate – Before operations begin
3-Provisional Certificate – Based on projected emissions
4-Final Certificate – Based on actual, third-party verified data

Only producers with final certificates will be eligible for government incentives or domestic sales. “India aims to establish a ‘Guarantee of Origin’ framework,” Choubey said. “With third-party validation, data monitoring, and a strong compliance structure, the scheme will enhance investor and buyer confidence alike.”

Green Hydrogen And The Carbon Market: A Two-way Bridge
The certification scheme also connects India’s hydrogen strategy with its emerging carbon credit ecosystem. Under the Carbon Credit Trading Scheme (CCTS), hydrogen producers in hard-to-abate sectors can now generate and trade carbon offsets – creating financial incentives for decarbonisation.

“As the certification integrates with the upcoming carbon market, we foresee green hydrogen emerging as a key lever in driving industrial decarbonisation, green jobs, and sustainable growth,” said Gaurav Moda, Partner and Energy Sector Leader at EY-Parthenon India.

The certificates – issued in units of 100 kg – carry emission intensity data and production attributes. This data granularity is crucial for monetising carbon savings and tailoring policy incentives to genuinely low-emission hydrogen.

A Geopolitical And Market Signal
India’s hydrogen certification is also a signal to global buyers—particularly in the EU, Japan, and Korea—that it is ready to meet their sustainability standards.

“By clearly defining what qualifies as ‘green’ hydrogen, based on emissions intensity and renewable energy sourcing, [the scheme] establishes credibility and traceability,” said Sanjeev Kaul, Head – Green Molecules, Jakson Green. “This alignment ensures India’s hydrogen can compete globally and attracts foreign investment.”

Kaul added that by differentiating green, blue, and grey hydrogen, the scheme also enables more informed decisions from both policymakers and industrial buyers. “This will help design incentives that truly reward low-carbon production, while grey and blue hydrogen may be put on a phase-down pathway.”

Enforcement, Penalties And Road Ahead
To maintain the integrity of the system, the MNRE or its delegated agency can withdraw certifications for non-compliance or if verified emissions exceed thresholds. Repeat violations could lead to disqualification from future cycles—a deterrent aimed at ensuring only credible players stay in the market.

The scheme’s success, however, will depend on operationalising its robust design—ensuring Accredited Carbon Verification (ACV) agencies function transparently, MRV systems work efficiently, and enforcement doesn’t lag.

As Union Minister Pralhad Joshi recently noted, “Certification is most important. With it, our green hydrogen will carry a mark of quality and credibility, making it globally desirable and export-ready.”

A First Step
India’s green hydrogen certification scheme offers clarity where confusion reigned, and rules where ambiguity stalled investment. But it is not the end of the road.

If implemented well, it could become the backbone of a competitive domestic hydrogen ecosystem, position India as a trusted exporter, and provide the tools needed for industrial decarbonisation. In a space crowded with promises, certification might just become India’s clean fuel calling card.