Low-carbon hydrogen and e-fuels: Regulation
The mandates and credits that create hydrogen buyers
What this tab covers How it is regulated and what could disrupt supply: hazard classification, rules in the EU, US and India, anti-dumping duties and other trade measures, and supply-risk notes.Hazards
| Classification | UN number | Key risks |
|---|---|---|
| hydrogen: flammable gas cat 1A; ammonia: acute toxicity, corrosive; methanol: flammable, toxic | UN1049 / UN1005 / UN1230 | Hydrogen leaks and explosions; ammonia toxicity; methanol poisoning. |
Main rules
| Where | Rule | Effect |
|---|---|---|
| EU | RED III (42% renewable hydrogen in industry by 2030); ReFuelEU Aviation synthetic fuel sub-mandate from 2030; FuelEU Maritime; CBAM on hydrogen and ammonia from 2026 | creates the largest compliance market |
| US | 45V clean hydrogen credit, tiered by lifecycle intensity, narrowed by 2025 legislation (indicative) | drives blue and some green projects |
| Japan and Korea | Contracts for difference for hydrogen and ammonia imports and co-firing (indicative) | anchor buyers for Gulf, Indian and Australian exports |
| IMO | Net-Zero Framework for shipping (adoption delayed in 2025, indicative) | would set a carbon price on ship fuel |
India
| Rule | Effect |
|---|---|
| National Green Hydrogen Mission (2023): 5 Mt a year by 2030; SIGHT incentives for electrolysers and green hydrogen and ammonia | subsidised tenders |
| Green Hydrogen Standard for India: at most 2 kg CO2e per kg H2, well-to-gate | defines eligibility |
| PESO Gas Cylinders Rules 2016 and SMPV(U) Rules 2016 | storage and transport licensing |
Trade measures
- EU CBAM covers hydrogen (CN 2804 10) and ammonia from 2026
- Barriers to Chinese electrolysers outside China (IEA 2025)
Supply risk
The constraint is demand and finance, not geology. Electrolyser manufacturing is about 60% Chinese; iridium and platinum for PEM stacks are critical minerals. Export lanes from the Gulf pass Hormuz.