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The Future of Hydrogen Chapter 6: Policies to boost momentum in key value chains Table 12. Five key policy categories and examples of cross-cutting policy needs for hydrogen scale-up regardless of the value chains pursued Policy category Policy needs Purpose Cross-cutting examples 1. Targets and/or long- term policy signals Public and private commitments to a vision for the 2030 and 2050 role for hydrogen, embedded in an overarching energy, environment and industrial policy framework with measures for delivery. Provide all stakeholders with more confidence that there will be a future marketplace for low-carbon hydrogen and related technologies, supporting investment and co-operation between companies and countries. Includes: national hydrogen roadmaps and targets for hydrogen use; economy-wide emissions targets; national industrial strategies; international agreements and commitments. Nationally determined contributions under the Paris Agreement; European Commission climate-neutral strategy for 2050; UK Climate Change Act; draft laws for carbon neutrality in 2050 in France and Germany; Japan’s Basic Hydrogen Strategy; China’s Ecological Civilization commitment; Make in India; The Netherlands Climate Law and Agreement. Policies that put an economic value on hydrogen for use in new applications or from new sources, growing hydrogen demand across different applications in an integrated way International co-operation that helps synchronise scale-up of hydrogen demand, reduce risks relating to competitive pressures for trade- exposed sectors and underpin investment in manufacturing capacity. Scale up commercial deployment using demand-side policies that “pull” investment throughout the value chain, making projects bankable. In several applications, hydrogen technologies are ready to move beyond demonstration projects and, with policy support to close the price gap, into self-sustaining businesses, understood by financers. Includes: portfolio standards; CO2 and pollution pricing; mandates and bans; performance standards; public procurement rules; electricity and gas market rules (including markets for auxiliary services and locational, temporal pricing); tax credits; reverse auctions. Highly technology prescriptive policies should be avoided, but all should be open to hydrogen on equal terms, for example in auctions for low-carbon electricity integrated with power storage. 2. Demand creation Canadian Clean Fuel Standard; California Low Carbon Fuel Standard (LCFS) and Zero Emissions Vehicle (ZEV) mandate; EU Emissions Trading System, Clean Vehicles Directive and emissions standards for cars and trucks; Dutch public procurement provisions for low- carbon materials; UK Renewable Transport Fuel Obligation (RTFO); US 45Q tax credit for CCUS. PAGE | 175 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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