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China

China’s renewable energy industry has been expanding rapidly to respond to global energy transition. Given its crucial role in global energy transition, its recent hydrogen development has significant international implications.

Promotion of the hydrogen sector in China dates back to 1986 and has strongly focused on fuel cells and related refueling infrastructure. Policymaking at the local level is more advanced than that at the central level. Before the issuance of the Mid-and-Long-Term Hydrogen Industrial Development Plan in March 2022, local governments had already issued hydrogen development plans, mainly focused on fuel cell vehicles and related infrastructure. The national hydrogen development plan identifies hydrogen’s broader role in decarbonizing energy consumption and contributing to achieving carbon neutrality in hard-to-abate sectors, including the steel, transport and chemical industry. It aims to produce 100,000 to 200,000 tons of renewable hydrogen per year by 2025 and aims to thereby reduce 1 to 2 million tons of CO2 emissions annually. The plan also confirms that by 2025, the central government is targeting 50,000 fuel cell vehicles. In addition to the development of the domestic hydrogen economy, China aims to push forward hydrogen cooperation in the Belt and Road cooperative agenda.

Based on our research on the hydrogen policy landscape of China, we found 67 interventions on hydrogen at the national level, whose distribution is outlined in the country dashboard. Our analysis of the currently implemented interventions revealed that China is placing a great emphasis on the industrial development in the hydrogen sector, and the most prominent types of policy interventions are geared towards promoting research and development, as well as subsidies to the construction of hydrogen refueling stations and to the consumption of hydrogen fuel cell vehicles.

Ministries involved in hydrogen policy

Number of policy interventions by ministry

Number of hydrogen-related interventions by public entities. This graph shows the distribution of policy interventions among the different public entities in the country. The number of interventions per entity takes into account all hydrogen-related activities, both individual as well as those collectively undertaken.

Hydrogen policy by instrument type and value chain segment

Policy instruments by type

China

Number of policy instruments in the hydrogen sector by instrument type. The R&D category entails those instruments promoting hydrogen research and development either through tax incentives or grants/subsidies; the Investment category comprehends those instruments promoting the investment in hydrogen production, usage, and/or transport and storage infrastructure; International Initiatives entail the instruments that have an international component i.e. treaties, accords, diplomatic activities, investments made by the Government abroad; Economy-wide instruments refer to non-sector-specific policies that provide a relative advantage to climate-friendly products and economic activities; Network/cluster promotion encompasses those policy instruments focused on building regional clusters and/or networks; Education and information entail the instruments to increase public awareness related to hydrogen; Voluntary agreements refer to those agreements made with private entities to take certain actions without an enforcement mechanism by the government.

Policy instruments by segment of the hydrogen value chain

China

Number of policy instruments by intervention sector along the hydrogen value chain. Shown here are those policy instruments classified in the following sector categories: multiple, production, usage, and transport and storage. Here multiple refers to policy instruments that directly impact two or more sectors, while the remaining areas of production, usage, transport, and storage exclusively impact the respective sectors.

International hydrogen initiatives

International Initiatives by instrument type

China

Number of policy instruments in the hydrogen sector by instrument type, considering only international initiatives. It is thus a zoom into the distribution of international interventions by type of instrument.

International initiatives by segment of the hydrogen value chain

China

Number of policy instruments in the hydrogen sector by segment of the hydrogen value chain, considering only international initiatives. It is thus a zoom into the distribution of international interventions by segment of the hydrogen value chain.

Types of policy instruments

Promotion of Investment

China

Number of all policy instruments targeting Promotion of Investment (including those targeting Production, Usage, and Transport and Storage) distributed by the different subcategory types: grants/subsidies, tax incentives public procurement, regulatory instruments, and other instruments). Accordingly, this graph includes all instruments that promote investment in either production, usage, or transport and storage as portrayed by the specific instrument they target.

Promotion of R&D

China

Number of policy instruments targeting Promotion of R&D distributed by the different subcategory types: grants/subsidies, tax incentives public procurement, regulatory instruments, other instruments, and multiple). A "Multiple" intervention is one that targets more than one instrument within R&D, e.g., one that addresses R&D through grants and other instruments, or through tax incentives and other instruments.

Education and Information

China

Number of policy instruments targeting Education and Information distributed by the different types of subcategories: education/training, awareness raising, labelling, and quality infrastructure. "Multiple" interventions target more than one instrument within Education and Information, e.g., one that addresses Education and Information through awareness raising and labelling, or education/training and quality infrastructure.

Promotion of Investment in Hydrogen Production, by instrument type

China

Number of policy instruments targeting Promotion of Investment in Hydrogen Production exclusively (this graph differs from Graph „Promotion of Investment“ as this one singles out only those interventions focused on Promotion of Investment in Hydrogen Production) distributed by the different subcategory types: grants/subsidies, tax incentives, public procurement, regulatory instruments, and other instruments). Multiple" interventions target more than one instrument within Promotion of Investment in Hydrogen Production), e.g., one that addresses Promotion of Investment in Hydrogen Production through grants/subsidies, tax incentives or regulatory instruments, and other instruments.

Promotion of Investment in Hydrogen Use, by instrument type

China

Number of policy instruments targeting Promotion of Investment in Hydrogen Use exclusively (this graph differs from Graph „Promotion of Investment“ as this one singles out only those interventions focused on Promotion of Investment in Hydrogen Use) distributed by the different subcategory types: grants/subsidies, tax incentives, public procurement, regulatory instruments, and other instruments). Multiple" interventions target more than one instrument within Promotion of Investment in Hydrogen Use), e.g., one that addresses Promotion of Investment in Hydrogen Use through grants/subsidies, tax incentives or regulatory instruments, and other instruments.

Promotion of Investment in Hydrogen Storage and Transport Infrastructure, by instrument type

China

Number of policy instruments targeting Promotion of Investment in Hydrogen Storage and Transport Infrastructure exclusively (this graph differs from Graph „Promotion of Investment“ as this one singles out only those interventions focused on Promotion of Investment in Hydrogen Storage and Transport Infrastructure ) distributed by the different subcategory types: grants/subsidies, tax incentives, public procurement, regulatory instruments, and other instruments). Multiple" interventions target more than one instrument within Promotion of Investment in Hydrogen Storage and Transport Infrastructure , e.g., one that addresses Promotion of Investment in Hydrogen Storage and Transport Infrastructure through grants/subsidies, tax incentives or regulatory instruments, and other instruments.

Policy instruments by segments of the hydrogen value chain

Production of hydrogen and hydrogen derivatives, by production process and type of derivative

China

Displays the number of policy instruments targeting hydrogen and hydrogen derivatives by the production process (electrolysis, SMR with CCS, methane pyrolysis or unspecified) and derivative type (methanol, synthetic fuels, LOHC, ammonia, other or unspecified). Thus, this graph shows both, interventions targeting hydrogen production, and hydrogen derivatives production. "Multiple" interventions target more than one subcategory either or and within the production of hydrogen and production of hydrogen derivatives e.g., one that addresses the production of hydrogen via electrolysis and methane pyrolysis, or production of hydrogen derivatives specific for ammonia and methanol. These subcategories encompass not only the instruments directly affecting production of hydrogen in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the production of hydrogen and hydrogen derivatives-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to production. The latter needs to be included here for an accurate representation of policy instruments targeting production of hydrogen and hydrogen derivatives.

Hydrogen production by electrolysis, by type of electrolyzer

China

This graph displays the number of policy instruments targeting hydrogen production by electrolysis, distributed by electrolyzer type: PEM, Alkali, SOEC, or unspecified. "Multiple" interventions target more than one electrolyzer type within hydrogen production by electrolysis e.g., one that addresses Alkali and PEM electrolyzers or SOEC and PEM electrolyzers. These subcategories encompass not only the instruments directly affecting production of hydrogen in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the production of hydrogen by electrolysis policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to production of hydrogen b of hydrogen by electrolysis. The latter needs to be included here for an accurate representation of policy instruments targeting production of hydrogen by electrolysis.

Instruments in support of hydrogen storage and transport, including mode of transport

China

Number of policy instruments targeting hydrogen storage and transport infrastructure distributed by its subcategories: mode of transport: road, pipeline, maritime or unspecified, and storage. "Multiple" refers to interventions that touch on different modes of transport and/or transport and storage infrastructure at the same time. These subcategories encompass not only the instruments directly affecting transport and storage infrastructure in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the transport and storage infrastructure-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to transport and storage infrastructure. The latter needs to be included here for an accurate representation of policy instruments targeting hydrogen transport and storage infrastructure.

Instruments in support of hydrogen use, by area of application

China

Number of policy instruments targeting different types of hydrogen usage. These policy instruments are further divided into six subcategories: power generation, heat, industry (i.e., steel, chemical, cement, other), transport/mobility (i.e., automobile, bus, rail, trucks, aviation and maritime), unspecified, and multiple (touching on two or more subcategories within usage). These subcategories encompass not only the instruments directly affecting usage in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the usage-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to usage. The latter needs to be included here for an accurate representation of policy instruments targeting hydrogen usage.

Instruments in support of hydrogen use in transport, by sub-sector

China

Number of policy instruments that target hydrogen usage in the transport/mobility sector distributed by its further subcategories: passenger vehicles, buses, rail, trucks, aviation, maritime, unspecified, and multiple (touching on two or more subcategories within transport/mobility). These subcategories encompass not only the instruments directly affecting usage in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the usage-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to usage. The latter needs to be included here for an accurate representation of policy instruments targeting hydrogen usage and more specifically, use in transport/mobility.

Instruments in support of hydrogen use in industry, by industrial sector

China

Number of policy instruments that target hydrogen usage in the industrial sector distributed by its further subcategories: steel, chemical, cement, other, unspecified, and multiple (touching on two or more subcategories within industry). These subcategories encompass not only the instruments directly affecting usage in the graph „Policy Instruments by segment of the hydrogen value chain“, but also the usage-relevant policy instruments that are accounted for under the category “Multiple” of the previous figure i.e., that also touch on different parts of the hydrogen value chain in addition to usage. The latter needs to be included here for an accurate representation of policy instruments targeting hydrogen usage and more specifically, use in industry.