Mumbai, 19th May 2025– As the European Union prepares to finalize the definition of “low-carbon hydrogen” in its forthcoming Low Carbon Fuels Delegated Act on May 19, 2025, leading voice from global clean energy sector, SPDA (Sustainable Projects Developers Association) is calling for urgent course correction to preserve climate credibility.
At the heart of the concern is the risk of misclassifying blue hydrogen, produced from fossil gas with carbon capture and storage (CCS)— as a sustainable, low-carbon fuel. While the draft regulation seeks to set climate thresholds, experts warn that current provisions still leave the door open for technologies with marginal, unverified climate benefits to receive public funding and state support.
“This decision will set a precedent for global hydrogen policy. We must not allow fossil-based workarounds to claim space and capital that should go to truly clean energy,” said Mr. Shekhar Dutt, Director General Sustainable Projects Developers Association (SPDA). “Green hydrogen is the only long-term climate solution aligned with India’s and the world’s net-zero ambitions.”
The Evidence Against Blue Hydrogen is Mounting
A recent landmark study by researchers from Cornell and Stanford (Howarth & Jacobson, 2021), published in Recharge News, revealed that:
- The GHG footprint of blue hydrogen is 20% higherthan burning natural gas or coal for heat.
- Methane leaks: Methane is over 80x more potent than CO₂ over a 20-year period (IPCC, AR6). Even a 1-3% leakage rate during natural gas extraction and transport significantly offsets any climate benefit of blue hydrogen.
- Energy-intensive carbon captureoften relies on more fossil fuel use, undermining emissions goals.
- Assumptions around long-term carbon storageremain largely unproven at commercial scale.
What Needs to Change
Even after the updated draft of the Delegated Act released in April, experts emphasize that further revisions are necessary to ensure climate integrity. The EU must adopt stricter default emission values for blue hydrogen to reflect its true climate impact. Additionally, it is crucial to exclude offsetting mechanisms, such as the use of biomethane or blended fuels, which can obscure actual emissions. Lastly, all projects should be subject to independent, site-specific verification of emissions performance to ensure accuracy and accountability, rather than relying on generalized or self-reported data.
Why This Matters Globally
The EU’s definition of “low-carbon hydrogen” is not just a regional policy detail — it will ripple across energy policy frameworks in India, Japan, South Korea, the GCC, and beyond. Without strong safeguards, billions in public funding could be misdirected toward fossil-dependent technologies, delaying the scale-up of truly green alternatives.
“We must champion innovation over inertia,” added Mr. Dutt. “Every dollar spent on blue hydrogen is a dollar not spent on building resilient, renewable infrastructure.”
Call to Action
SPDA urges the EU to prioritize:
- Green hydrogen as the global standardfor decarbonization.
- Public funding only for independently verified, high-integrity technologies.
- Policies that reward true sustainability, not short-term optics.
With the May 19 decision fast approaching, the world is watching. What the EU chooses today will define what the world builds tomorrow.
ABOUT SPDA
Founded a decade ago, Sustainable Projects Developers Association (SPDA), has evolved into a vibrant and independent industry association dedicated to advancing the energy transition in India. Our mission remains steadfast in supporting the renewable, green fuel, solar manufacturing and energy storage sectors through active policy advocacy and dialogue. As a pivotal player in shaping policy, regulations, and addressing market challenges, SPDA is committed to fostering a competitive environment for clean energy. We offer a neutral platform for crucial discussions and consensus-building on matters vital to the growth of the clean energy sector.
