Today, the Hydrogen Alliance Research Institute (CHA) and the Climate Bonds Initiative announced that they have signed a Memorandum of Understanding (MoU) to support credible and ambitious standards for the low-carbon hydrogen sector in China.
Under the MoU, Climate Bonds Initiative (Climate Bonds) and CHA will work together on the following activities:
- Supporting hydrogen related climate bonds standard, promoting the standard and encouraging certification in hydrogen and relevant sectors
- Deepening cooperation in research and capacity building in the field of sustainable finance and hydrogen
- Jointly support the financing and implementation of high-quality low-carbon hydrogen projects in China
Formally registered and established in October 2020, China Hydrogen Alliance Research Institute (CHA) is an alliance of more than 200 members and former professional hydrogen energy developing platforms afflicated to the State entreprises such as China Energy Investment Group(CEIC), China State Shipbuilding Cooperation(CSSC), China National Aviation Holding Company (CNAH), China Iron and Steel Research Institute Group (CISRI) and China GRINM Group. CHA has a mandate of and is committed to becoming a high-level cooperation platform to promote interdisipline, cross-industry and cross-departmental collaboration to develop China's hydrogen energy and fuel cell industry.
Founded in 2009, Climate Bonds is an international non-profit organisation dedicated to mobilising global capital to combat climate change. Climate Bonds has played a central role in transforming the green bond market from a niche concept to a mainstream source of capital for sustainable development, driving quality of issuance through the development of science-based green definitions in line with the Paris Agreement. Climate Bonds joined the China Hydrogen Alliance as the first foreign NGO in 2021.
Hydrogen is an efficient, zero-emission clean energy source. Hydrogen energy can be transformed and utilised in many industries such as fuel cells in transportation or feedstock in shipping and aviation. At the same time, low-carbon hydrogen can help decarbonise heavy industries. For example, the use of hydrogen in steel production has the potential to reduce greenhouse gas emissions in processes by 98%, and in cement production, it can help reduce emissions by almost a third.
From 2020 to 2050, global investment in hydrogen is expected to reach USD15 trillion. The Climate Bonds Hydrogen Production Criteria were launched in November 2022 using an emissions intensity approach to define low-carbon hydrogen. Because of the low volumetric energy density of hydrogen at ambient conditions, Climate Bonds expanded the criteria to certify hydrogen delivery projects in August 2023 to ensure the entire hydrogen value chain meets strict low-carbon standards.
As a member of hydrogen Industry Working Group (IWG), China Hydrogen Alliance is deeply involved in the formulation and update of the hydrogen standards.
China is the world's largest hydrogen producer, and the government has included hydrogen as a key energy in green energy development. According to a scenario analysis study conducted by the China Hydrogen Alliance, hydrogen produced by electrolysis from renewable energy sources could meet most of China's hydrogen demand by 2060. In March 2022, the Chinese government issued the Medium and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035), positioning hydrogen energy as an important part of the national energy system.
Sean Kidney, Co-Founder and CEO of the Climate Bonds Initiative, said:
“Hydrogen plays a key role in the low-carbon transition of the global and Chinese economies. By setting low-carbon financing standards for hydrogen projects and high-emitting sectors such as steel, the Climate Bonds provides clear guidance to investors seeking to invest in a credible transition, as well as best practices for companies aspiring to decarbonise their sectors. We look forward to working with the China Hydrogen Alliance Research Institute to promote the contribution of hydrogen energy to the global green energy transition, set the standard for sustainable practices in the hydrogen value chain, and promote the further integration of Chinese and foreign capital markets.”
Xiao Chenjiang, Assistant General Manager of China Hydrogen Alliance Research Institute, said:
"The signing of MoU summs up the long-term exchanges and cooperation between the China Hydrogen Alliance Research Institute and Climate Bonds. It is an important symbol of deepening cooperation between two leading organisations in their respective fields. The China Hydrogen Alliance Research Institute will continue to strengthen cooperation with Climate Bonds to jointly promote the green and low-carbon development of hydrogen energy and related industries. ”
