The nation’s first CCER methodology in the hydrogen energy sector has been officially released

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On December 26, the Ministry of Ecology and Environment, in conjunction with the **Energy Bureau, issued the \"Methodology for Voluntary Greenhouse Gas Emission Reduction Projects: Hydrogen Production via Renewable Energy Electrolysis (CCER—01—004—V01)\” (hereinafter referred to as the \"Methodology\”). This methodology was developed with the participation of relevant member organizations organized by the China Hydrogen Energy Alliance. It serves as the core technical document supporting green hydrogen projects in participating in the **Voluntary Carbon Emission Reduction Mechanism (CCER). It represents a significant breakthrough that enables the environmental value of green hydrogen projects in China to be translated into marketable benefits, thereby providing strong impetus for the green and low-carbon development of the hydrogen energy industry. 　　Bringing the ‘last mile’ to realizing the green value of green hydrogen Under China’s carbon market framework driven by both a mandatory quota system and a voluntary emission reduction market, the CCER market provides an important channel for providing value compensation to projects that help reduce emissions. The release of the \"Methodology\" provides clear rules for calculating emission reductions and standards for project verification for renewable energy-based water electrolysis hydrogen production projects, thereby overcoming the \"last mile\" obstacle to realizing the environmental value of green hydrogen. 　　The verified emission reductions generated by the project can be used as CCERs to offset the quota compliance obligations of key emitting entities in the national carbon market, or to meet the voluntary emission reduction needs of other enterprises. This brings additional economic benefits to green hydrogen projects beyond hydrogen sales, significantly enhancing their economic viability and guiding funds toward the development of green and low-carbon hydrogen production. Key aspects of the methodology: strict adherence to standards and scientific calculation. The \"Methodology\" is closely aligned with the development of China’s hydrogen energy quality infrastructure, with the following key points: · Strict control over the \"green\" nature: This methodology is applicable to new projects, and it requires that the electricity used by such projects come from on-site wind power and/or solar power sources. This provision ensures the “renewable” nature of hydrogen, and is in line with the requirements for renewable hydrogen set out in domestic authoritative standards such as the \"Evaluation Standards for Clean and Low-Carbon Hydrogen,\" thereby ensuring the purity of environmental rights from the source. 　　·Scientific calculation of emission reductions: The baseline method is used for calculation. The baseline emission factor represents the average carbon emission level associated with hydrogen production using traditional fossil fuel sources (such as hydrogen produced from coal). The hydrogen production volume is adjusted according to the proportion of electricity used, and the emissions from the project are set to 0; thus, the product of the emission factor and the production volume gives the amount of CCERs that can be applied for by the project. 　　·Facilitating the initial development of the industry: The Methodology stipulates that renewable energy-based water electrolysis hydrogen production projects are exempt from having to prove additionality. This arrangement takes into full account the fact that the hydrogen energy industry is still in its initial stages of scale-up, aiming to reduce project development costs and support a smooth transition of the industry to the commercial phase. Unlocking tremendous environmental and economic value to facilitate the “dual carbon” goals. The official implementation of the “Methodology” will have a profound impact on China’s hydrogen energy industry. Preliminary estimates suggest that by 2030, renewable energy-based hydrogen production projects that meet the methodological requirements could achieve an annual emission reduction of around 60 million tons of carbon dioxide. Based on the current market price of CCER, it can generate green benefits worth several billion yuan per year for the industry, thereby greatly stimulating interest in investing in green hydrogen projects. 　　This move represents another significant milestone for China in the field of hydrogen production from renewable energy and carbon emission reduction, following its achievements in establishing global standards while simultaneously improving its domestic systems. It underscores China’s determination and commitment to fulfilling its ‘dual carbon’ goals. It will effectively drive the hydrogen industry to accelerate its transition from \"gray hydrogen\" to \"green hydrogen\", providing solid support for the establishment of a clean, low-carbon, safe, and efficient energy system. 　　Taking the release of this \"Methodology\" as an opportunity, the China Hydrogen Energy Alliance will continue to work together with its member organizations and industry peers to further improve the carbon emission reduction accounting system in the hydrogen energy sector. It will also promote the deep integration of green finance and the hydrogen energy industry, thereby contributing to the high-quality development of China’s hydrogen energy industry and offering Chinese insights and solutions for global climate governance.