India to become largest exporter of green hydrogen: Agreement with Japan soon

- India has sanctioned Rs 174.9 billion this year to promote green hydrogen

India is considering bilateral agreements with countries like Japan. The deal will allow Japan to use carbon credits linked to India's production of a clean energy source called green hydrogen.

In return, Japan would invest money in India and contract to buy goods from India. India has allocated 174.9 billion rupees (about $2.13 billion) this year to promote the use of clean energy called green hydrogen.

The goal is to reduce carbon dioxide emissions. India also wants to become the largest exporter in the region by selling green hydrogen to other countries. Indian companies like Reliance Industries, Indian Oil have big plans for green hydrogen, which is produced using renewable energy.

According to sources, when projects work to reduce harmful gases that contribute to climate change, they get carbon credits. Each carbon credit represents the reduction of one ton of carbon dioxide.

By trading these credits, India can bring in more investment and earn more profit by selling them. If India signs this deal, companies or financial agencies from other countries will invest money and buy from Indian green hydrogen producers. Currently, India is talking with Japan about this.

On March 17, Japan and India agreed to work together to reduce carbon emissions. He signed the Paris Agreement. This agreement was made under Article 6 of the Paris Agreement. It states that countries can pool their efforts to reduce pollution. Japan and India are going to create a system called Joint Crediting Mechanism to do this. This means they will work together and get credit for their efforts to make the environment cleaner and safer for all. Article 6 is part of the Paris Agreement that allows countries and companies to share credits for reducing carbon emissions. It is like a special reward for doing something good for the environment. When a person buys this fuel, they may also receive a reward or credit for helping to reduce pollution. Normally, people who make green hydrogen get credits, but with Section 6, buyers can also get credits for using it.

In this way, more people are encouraged to use cleaner fuels and help protect the planet.

Japan already has agreements with 26 countries, including Bangladesh, Ethiopia, Kenya, Indonesia and Saudi Arabia.

The Government of India is talking to various ministries and industry experts about carbon trading. They are discussing how they can trade or exchange credits to reduce carbon emissions. This is necessary to protect the environment. The government is also preparing for a big meeting on green hydrogen i.e. clean fuel. They want to talk to people from other countries about how they can work together to make the world cleaner and safer.

Indian industry body Solar Power Developers Association said that if countries in the rich part of the world (called the Global North) use their advanced technology and expertise, and if countries in the poor part of the world use their vast opportunities for green development, they Together we can fight climate change.

India can benefit from the European Union's target of buying 10 million tonnes of green hydrogen by 2030. They can do this by using Article 6 of the Paris Agreement.