Climate change is the issue of our times and rapid decarbonization is one the principal handles for mitigating climate change. In itself, decarbonization is a large theatre with numerous fields and can transform organizations.
A key constituent for successfully putting forward the principles of decarbonization is green hydrogen. It along with its derivatives are expected to play a critical role in the world for decarbonization at scale owing to its versatility and enabling its use in many applications. Green hydrogen will also aid the decarbonization of hard to abate sectors.
Many countries have taken the first step towards a low-carbon hydrogen-based economy by establishing strategies, policies, initiatives, and pilot projects. Among low-carbon hydrogen production methods, Green hydrogen is expected to take the center stage at the next round of global decarbonization initiatives.
In order to bring together all these diverse needs and asks of industry, governments, society and other stakeholders, KPMG is setting up global decarbonisation hubs across seven regions/countries across the world, including the India decarbonization hub. Also, KPMG in India has released a report titled – ‘India’s green hydrogen ambition – Setting the wheels in motion’.
India decarbonization hub concept
The India decarbonization hub will bring together the most advanced skills, capabilities and knowledge from across a dozen functions in KPMG in India and also from partners and associates. It will accelerate transition by enabling delivery of innovative and leading services and solutions. Through the hub’s initiatives, we will invest in transformative methodologies and technologies. Digital technologies will be at the heart of the hub delivery engine.
The hub will provide businesses and wider institutions tangible business and social outcomes, smart visualisation for control, accountability and credibility of actions and transformation and change management through ease of adoption.
Link to microsite – India decarbonization hub
Report titled – ‘India’s green hydrogen ambition – Setting the wheels in motion’
This report lays out a comprehensive plan for increasing R&D activity in India across several programme areas.
Critical areas of focus for policy makers:
- The efforts to increase green hydrogen economy should be backed by firm measures to develop a local supply chain to ensure indigenous capabilities
- A strong alignment needs to be created between centre and states
- Demand side impetus would need to be created to facilitate green hydrogen uptake
- A well-built procurement policy framework will be needed to enable demand aggregation, cost reduction, and better risk management
- Access to finance at low cost would be a pre-requisite to facilitate development of the supply chain
India’s landmark Green Hydrogen Policy released in February 2022 was a welcome initiative. While it sets the ball rolling it marks only the first steps in a long road. Challenges do remain in both implementing these measures as well as additional measures needed. Directionally, India is clearly seeking to position itself as a strong candidate to lead the world’s low-carbon hydrogen transition, with promise from policy makers and industry alike to implement the subsequent phases of development effectively in this journey.
However, it is critical to ensure that the technology, capital, and capacities do not pose a significant test for India’s domestic capabilities.
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