CII urges govt to issue mandate on Green Hydrogen

New Delhi: The Confederation of Indian Industry has called on the government to introduce green hydrogen mandates to increase its demand for a viable green hydrogen ecosystem. It has proposed mandatory blending of green hydrogen in sectors such as refining, fertilisers and natural gas, supported by mechanisms to offset incremental costs.

The sectors that use grey hydrogen extensively are best positioned to pioneer large-scale demand for green hydrogen, it said adding that the cost gap between green and grey hydrogen remains substantial. Greening mandates backed by incentives would help in covering the gap and providing certainty to producers and economies of scale. The consumption or procurement mandates could be phased and accompanied by cost-offset mechanisms such as carbon credit allocations for emissions saved, cross subsidies and viability gap funding.

India should take the next leap in promoting green technologies after it marked a record-breaking year in its clean energy journey in 2025, with non-fossil fuel installed capacity rising to 266.78 GW, Chandrajit Banerjee, Director General CII, said.