The Confederation of India Industry (CII) has urged the government to implement Green Hydrogen mandates to drive demand and foster a thriving green hydrogen economy. CII emphasized the need for greening mandates supported by incentives to bridge the cost disparity between green and grey hydrogen. Sectors like refining, fertilizers, and natural gas could potentially adopt Green Hydrogen Blending with cost-offset mechanisms to lead the way in creating demand for green hydrogen.
The industry body highlighted that sectors heavily reliant on grey hydrogen are well-positioned to kickstart significant demand for green hydrogen. By implementing greening mandates, producers could benefit from increased certainty, facilitating quicker cost reductions through economies of scale. CII proposed phased mandates along with cost-offset measures like carbon credit allocations for emissions reduction and cross subsidies, particularly in the fertilizer industry, by offering cheaper natural gas when blended with green hydrogen.
Additionally, CII recommended the provision of viability gap funding to alleviate the financial burden on consumers and industries. Chandrajit Banerjee, Director General of CII, emphasized the importance of India embracing green technologies following a successful year in clean energy in 2025, where non-fossil fuel installed capacity reached 266.78 GW, marking a 22.6% increase from the previous year. The industry body foresees substantial demand arising from mandating public procurement in government projects, encompassing a percentage of infrastructure materials like steel and ammonia, as well as from green hydrogen-based production units.
Encouraging a swift transition to green steel and ammonia in export-oriented sectors, CII aims to safeguard India’s access to premium markets and stimulate domestic green hydrogen demand, ultimately enhancing cost-efficiency and the maturity of the value chain.
