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Current Development Status, Policy Support and Promotion Path of China’s Green Hydrogen Industries under the Target of Carbon Emission Peaking and Carbon Neutrality

Author

Listed:
  • Lei Yang

    (School of Marxism, Shandong Jianzhu University, Jinan 250101, China)

  • Shuning Wang

    (Shandong Dongming Petrochemical Group Finance Co., Ltd., Heze 274000, China)

  • Zhihu Zhang

    (School of Mechanical Engineering, Tianjin University, Tianjin 300350, China)

  • Kai Lin

    (School of Finance, Faculty of Economics and Management, Qilu University of Technology (Shandong Academy of Sciences), Jinan 250101, China)

  • Minggang Zheng

    (School of Mechanical and Electrical Engineering, Shandong Jianzhu University, Jinan 250101, China)

Abstract

The green hydrogen industry, highly efficient and safe, is endowed with flexible production and low carbon emissions. It is conducive to building a low-carbon, efficient and clean energy structure, optimizing the energy industry system and promoting the strategic transformation of energy development and enhancing energy security. In order to achieve carbon emission peaking by 2030 and neutrality by 2060 (dual carbon goals), China is vigorously promoting the green hydrogen industry. Based on an analysis of the green hydrogen industry policies of the U.S., the EU and Japan, this paper explores supporting policies issued by Chinese central and local authorities and examines the inherent advantages of China’s green hydrogen industry. After investigating and analyzing the basis for the development of the green hydrogen industry in China, we conclude that China has enormous potential, including abundant renewable energy resources as well as commercialization experience with renewable energy, robust infrastructure and technological innovation capacity, demand for large-scale applications of green hydrogen in traditional industries, etc. Despite this, China’s green hydrogen industry is still in its early stage and has encountered bottlenecks in its development, including a lack of clarity on the strategic role and position of the green hydrogen industry, low competitiveness of green hydrogen production, heavy reliance on imports of PEMs, perfluorosulfonic acid resins (PFSR) and other core components, the development dilemma of the industry chain, lack of installed capacity for green hydrogen production and complicated administrative permission, etc. This article therefore proposes that an appropriate development road-map and integrated administration supervision systems, including safety supervision, will systematically promote the green hydrogen industry. Enhancing the core technology and equipment of green hydrogen and improving the green hydrogen industry chain will be an adequate way to reduce dependence on foreign technologies, lowering the price of green hydrogen products through the scale effect and, thus, expanding the scope of application of green hydrogen. Financial support mechanisms such as providing tax breaks and project subsidies will encourage enterprises to carry out innovative technological research on and invest in the green hydrogen industry.

Suggested Citation

  • Lei Yang & Shuning Wang & Zhihu Zhang & Kai Lin & Minggang Zheng, 2023. "Current Development Status, Policy Support and Promotion Path of China’s Green Hydrogen Industries under the Target of Carbon Emission Peaking and Carbon Neutrality," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:10118-:d:1179611
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    References listed on IDEAS

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    1. Ning Lin & Liying Xu, 2024. "Navigating the Implementation of Tax Credits for Natural-Gas-Based Low-Carbon-Intensity Hydrogen Projects," Energies, MDPI, vol. 17(7), pages 1-15, March.

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