India’s SPDA Calls For An Urgent Course Correction Ahead of EU Hydrogen Vote

Ahead of the European Union (EU) finalizing its definition of ‘low carbon hydrogen’ in its Low Carbon Fuels Delegated Act, India’s industry body Sustainable Projects Developers Association (SPDA) came out with a statement saying that an urgent course correction was needed to preserve climate credibility.

SPDA in a statement raised concerns about EU classifying blue hydrogen as a sustainable, low carbon fuel. The statement noted that while the draft regulation seeks to set climate thresholds, its current provisions still leave the door open for technologies with marginal, unverified climate benefits to receive public funding and state support.

Noting the global impact the legislation would have, SPDA’s statement noted that EU’s definition of “low-carbon hydrogen” was not just a regional policy detail, but one that will impact energy policy frameworks in India, Japan, South Korea, the GCC, and beyond. Without strong safeguards, billions in public funding could be misdirected toward fossil-dependent technologies, delaying the scale-up of truly green alternatives, it said.

Mr. Shekhar Dutt, Director General of (SPDA) came out in support of green hydrogen, saying that fossil-based turnarounds should not be allowed to claim the space and capital for clean energy.

“This decision will set a precedent for global hydrogen policy,” he said. “We must not allow fossil-based workarounds to claim space and capital that should go to truly clean energy. Green hydrogen is the only long-term climate solution aligned with India’s and the world’s net-zero ambitions.”

Blue hydrogen is hydrogen captured from natural gas, where the carbon dioxide produced as residue is not released as a byproduct, but captured using carbon capture and storage (CSS) technology. While not completely carbon free, it is considered to be a lower carbon alternative to other varieties of hydrogen.

SPDA said that there was mounting evidence against blue carbon as a green gas. Citing studies done by researchers in Cornell and Stanford, SPDA pointed that blue hydrogen’s greenhouse gas (GHG) footprint is 20% higher than burning natural gas or coal for heat. The process for capturing blue hydrogen is energy-intensive and relies on fossil fuels, thereby undermining emission goals, the statement noted.

SPDA also took note of the issue of methane produced while capturing blue hydrogen, noting that even a 1-3% leakage during natural gas extraction can offset any climate benefit surrounding blue hydrogen.

The issue regarding long-term carbon storage was also raised by SPDA saying that assumptions regarding it remained largely unproven.

Apart from communicating its reservations about blue carbon, SPDA also gave a few pointers on the direction that the draft legislation should take. It called for EU adopting stricter default emission values for blue hydrogen to better reflect its true climate impact. SPDA also said that it is crucial to exclude offsetting mechanisms, such as the use of biomethane or blended fuels, which can obscure actual emissions. Lastly, all projects should be subject to independent, site-specific verification of emissions performance to ensure accuracy and accountability, rather than relying on generalized or self-reported data.

“We must champion innovation over inertia,” added Mr. Dutt. “Every dollar spent on blue hydrogen is a dollar not spent on building resilient, renewable infrastructure.”