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Green Hydrogen Organization announces ProClime as their Carbon Partner in India at CETFiS – the green hydrogen economy is taking off in India

  • G20 Secretariat & Ministry of New and Renewable Energy joined hands with the Green Hydrogen Organization to conduct Climate and Energy Transition Finance Summit (CETFiS) ahead of COP28
  • With a focus on the Global South, CETFiS advocated for blended finance models and a different financial instruments as primary sources of funding
  • The Delhi Message on Climate Finance launched

The Green Hydrogen economy is taking off in India.

New Delhi 29 November: The two day Climate and Energy Transition Finance Summit was concluded on Wednesday 29 November, with its 200 participants contributing to the Delhi Message on Climate Finance, issued on the eve of the UN Climate Conference COP 28, which Prime Minister Narendra Modi will attend in Dubai on 30 November-1 December.

The Delhi Message on Climate Finance, issued by the Green Hydrogen Organisation and its partners in India, offers a five point plan for financing the green hydrogen economy.
Unprecedented amounts of capital is required to finance the transition away from fossil fuels. At the same time, there are huge opportunities to tap capital markets, with the right enabling financial solutions.

“There is a growing understanding of how better functioning capital markets can bring in the financial resources needed to build our solar and wind parks and facilities to produce the green fuels our future requires” said Sanmit Ahuja, Senior Advisor, Green Hydrogen Organisation and chair of the Delhi Forum.

“Green Ammonia appear still more expensive in India than ammonia produced with gas. Many companies here at the Forum urgently call for the government to provide incentives and mandates making their green ammonia plans viable. If green ammonia production was just given the same incentives as the fossil-based fertilisers we use today have, we would be off to a roaring start.” said Nishaanth Balashanmugam, Green Hydrogen Organisation’s India Director.

On the eve of the Forum, Amitabh Kant, the government’s G20 sherpa sent the message that “The Climate and Energy Transition Finance Summit organised by the Green Hydrogen Organisation arrives at a pivotal moment in our global commitment to combat climate change”.

“It is truly impressive to hear from so many Indian companies about their enormous plans to become international leading producers of green hydrogen, green ammonia and other green fuels. Adani’s plans to produce 1 million tonnes of green hydrogen by 2030, using 20 gigawatts of solar and wind power and 15 gigawatts of electrolysers is a good illustration of the large scale production required to provide tomorrow’s energy.” said Jonas Moberg, CEO of the Green Hydrogen Organisation at the Forum.

“It is excellent to see that India is one of the leading countries in the green hydrogen race, with huge potential and high ambitions. The €2.3 billion commitment by the government to become a global green hydrogen hub is exactly the kind of public finance incentives we need to enable private sector investments.” said Hon Malcolm Turnbull, chair of the Green Hydrogen Organisation in a message from Sydney before boarding a flight to the UN Climate Conference in Dubai.

Kavin Kumar Kandaswamy, CEO, ProClime said, “The Green Hydrogen Organisation and ProClime have joined forces to enhance the viability of carbon funding initiatives and pursue the registration of the GH2 standard as a Voluntary Standard. Transitioning to hydrogen holds the key to slashing emissions globally. India stands at a pivotal crossroads, uniquely positioned to lead this transformative shift. This strategic collaboration aims to transcend borders, facilitating the global adoption of GH2 with increased certainty and assurance." Proclime was the core sponsor of the summit and became the Green Hydrogen Organisation’s carbon partner.  

“Australia is on track to deliver $3 billion to climate finance. But more is needed from all quarters including through innovative financing mechanisms” said Australia’s High Commissioner to India, HE Philip Green.

“It is exciting to support India in it’s efforts to become part of the global hydrogen economy; India has taken many crucial steps such as establishing national targets, setting policies and providing incentives, and can rely upon a great number of experienced renewable energy developers to engage on this next step in clean energy development” said Rolf Behrndt, Senior Hydrogen Advisor of the Deutsche Gesellschaft fur Internationale Zusammenarbeit.

The Delhi Message on Climate Finance, issued by the Green Hydrogen Organisation and its partners in India, offers a five point plan for financing the green hydrogen economy.

Unprecedented amounts of capital is required to finance the transition away from fossil fuels. At the same time, there are huge opportunities to tap capital markets, with the right enabling financial solutions.

Delhi Message on Climate Finance 5 point plan:

  1. Establish risk register. More can be done to quantify and price risks with large renewable energy and green hydrogen projects. Capital will only be invested when risks are clearly identified and mitigated. For this reason, we urge hosting governments and the finance industry to work together in establishing national sectorial risk registers.
  2. The cost of capital can be lowered through long-term financing. For this reason, we call on development finance institutions to provide long-term financing, 10 years or longer. We also hope that governments will do more to ensure that institutional investors can take on long-term liabilities within the framework of international finance regulations.
  3. Guarantee structures and credit enhancement should be scaled up and improved. For this reason, we are encouraging government guarantee agencies, not least in developed countries, and guarantee providers such as the World Bank’s Multilateral Investment Guarantee Agency to come up with new ways to provide guarantees. Many developing countries with great renewable energy potential have seen limited foreign direct investments to date, requiring new and elaborate risk mitigating measures.
  4. ​​​​Bond markets can be deepened. While green bonds and international bond markets are good at servicing developed countries, more efforts need to go into developing in particular the national bond markets in developing countries. 
  5. Market aggregation and demand incentives are critical. We urge governments to put in place clear demand targets and industry mandates to increase consumption of green hydrogen in hard-to-abate sectors, and to implement market aggregation mechanisms at domestic and global levels to send clear demand signals and facilitate domestic green hydrogen markets.