When Hydrogen Energy Meets Carbon – Carbon Trading under UNDP China Hydrogen Economy Pilot Project

April 24, 2018

--- Undercarriage and frame of a fuel cell vehicle ---

Beijing, April 13, 2018 – Today the United Nations Development Programme (UNDP) China Office launched a long-anticipated methodology to include hydrogen applications in carbon trading. The methodology, targeting the applications of fuel cell technologies in the transportation and “combined heat and power (CHP)” sectors, was developed under the China Hydrogen Economy Pilot Project in Rugao of Jiangsu Province, collaboratively operated by UNDP, China International Center for Economic and Technical Exchanges (CICETE) of the Ministry of Commerce, and Rugao Economic and Technological Development Zone.

During the event, Shanghai Treasure Carbon explained the outcomes of the methodology development, which will serve as a quantitative reference to make emissions reductions brought by fuel cell adoption in the transportation and CHP sectors tradable in the carbon market. The necessity and enormous potential of the development was affirmed by Prof. Wei Zhihong, a former methodology committee member of the United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism Audit Council. Industry experts from Shanghai Environment and Energy Exchange, China Beijing Environment Exchange, and China Emission Exchange shared their insights on the carbon trading market and on carbon finance, where hydrogen will have a role.

Along with the Ministry of Science and Technology (MOST), UNDP China has been working on the development of hydrogen fuel cell vehicles (FCVs) since 2003 with the support of the Global Environment Facility (GEF). FCV’s are electric vehicles that use fuel cells to power its motor. In 2016, UNDP China and its partners together moved the project onto phase III to facilitate the commercialization of FCVs, hence accelerating emissions reduction in the transportation sector of China. During the same year, UNDP worked with CICETE to start the first Chinese hydrogen economy pilot project in Rugao, aiming to turn hydrogen into a dominant energy source to fuel the Chinese economy.

UNDP has been committed to promoting the implementation and localization of the Sustainable Development Goals (SDGs) since 2015. The new methodology development will greatly facilitate the implementation of the SDG of Climate Action (SDG#13) by providing a quantitative method for fuel cell technologies to contribute to emissions reductions. The hydrogen economy pilot project will serve as a catalyst for hydrogen energy commercialization to bring forth the realization of the SDGs of “Adorable and Clean Energy” (SDG#7) and “Sustainable Cities and Communities” (SDG#11).

In the future, UNDP will continue to contribute to the development of hydrogen economy and clean energy, facilitate China’s economy transformation and energy reform, and reduce carbon emissions in accordance with the 17 SDGs.