As an example of untenable trade barrier he cited the condition that for green hydrogen exports, the distance between the point of generation of renewable energy and the location of electrolyzers should not be more than 500 kms.
Power, new and renewable energy minister RK Singh on Wednesday warned of retaliatory trade barriers if “certain countries” continue putting up untenable barriers, while advocating going green with net zero ambitions. “If you talk about barriers, stop talking about going green,” Singh said while addressing the first International Conference on Green Hydrogen 2023, being attended by more than 2,500 participants from India and abroad.
As an example of untenable trade barrier he cited the condition that for green hydrogen exports, the distance between the point of generation of renewable energy and the location of electrolyzers should not be more than 500 kms. “Is there any logic here? We transport electricity for thousands of kms. We are setting up 13,000 MW of renewable energy capacity in Ladakh. And, we will be transferring that green electricity across our country,” Singh said, adding that the green electricity will also be used for producing green hydrogen.
“India is taking lot of green initiatives as a commitment and will continue doing it. It wants the world to partner with it to tackle the global problem. Countries that have been advocating free trade for decades are setting up barriers,” the minister said.
“If you set up barriers then you are not helping the cause of the world to attain net zero,” he said, adding that if New Delhi starts putting up barriers, many countries will face barrier in entering the biggest market outside of China.
Considering green hydrogen to be the “future fuel of India” as its production cost will be the “cheapest” in India, the country launched the National Green Hydrogen Mission in January 2023 with an outlay of Rs 19,744 crore.
The mission aims to produce 5 million metric tonne per annum and associated renewable energy capacity of 125 GW by 2030. However, to make it happen, lot of technological advancements are needed in electrolyzers and the grid.
Singh urged the global investors to invest in India to manufacture the clean energy source. “We will help you in developing green hydrogen projects. We will also help you with demand as well. Come and partner with us,” he said.
Further, he said that some countries are talking about low carbon hydrogen or blue hydrogen, which is not green, and that raises the question of storing the carbon dioxide when commercial scale carbon sequestration is not there and it also runs the risk of leakage.
Indian steel, aluminium and other products will be facing trade barriers by the European Union in the form of Carbon Border Adjustment Mechanism (CBAM) from October 2023. The EU’s Deforestation Regulation (DR) will impact domestic coffee exporters.
Since 2018, Indian steel and aluminium have been facing additional tariffs of 25% and 10%, respectively, in the United States. Even the WTO last December had ruled that the US tariffs contravened existing trade rules.
Source:financialexpress.com