We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: The Hydrogen Council appears to be supportive of European climate policy, however, this appears to be limited to carbon pricing measures and only in relation to hydrogen development. Hydrogen Council does not appear to have engaged on climate policy beyond that. The association's position on the energy transition, however, is mixed, it appears to advocate for an expanded role for hydrogen, specifically in hard to abate sectors, but seems to have continued support for both low-carbon and renewable forms of hydrogen in the energy mix.
Top-line Messaging on Climate Policy: The Hydrogen Council’s top-line messaging on climate policy is positive. The association is supportive of the Paris Agreement and the target to limit warming to 2°C in its founding story on its corporate website. More recently it appears to support the 1.5°C target in its Hydrogen for Net-Zero paper, published November 2021. In its Policy Toolbox report published in November 2021, the Hydrogen Council also appear to be supportive of the need for climate regulations in relation to low carbon and renewable hydrogen development, such as carbon pricing mechanisms and cap-and-trade schemes.
Engagement with Climate-Related Regulations: The Hydrogen Council appears to have a positive position on climate-related regulations, although engagement has been limited to carbon pricing mechanisms. In its November 2021 Policy Toolbox publication, the association appears to support a carbon price mechanism, carbon tax Supporting carbon tax and carbon cap-and-trade system Supporting emissions trading as well as more specifically the EU ETS Supporting emissions trading . However, it is unclear whether this support extends beyond the benefits for hydrogen development. In its November 2021 Hydrogen for Net-Zero report, the association also appears to support both the introduction of CBAM and a phase-out of free allowances under ETS, to help drive the transition away from grey hydrogen. No clear timeline was clarified for the ETS reform and Hydrogen Council does not appear to have engaged on other forms of climate regulation outside of carbon pricing.
Positioning on Energy Transition: The Hydrogen Council appears to have a mixed position on the energy transition. It appears to support an increased role for hydrogen but it is unclear to what extent it supports removal of all unabated fossil fuels in production.
In its Hydrogen for Net-Zero report published in November 2021, the council appears to support a greater role for hydrogen as well as the electrification of transport and the use of carbon capture and storage. It also supports a campaign called CLIMATE CH2AMPION, a coalition to call for more investment in cleaner hydrogen technologies. However, in its Hydrogen for Net-Zero report from 2021, it appears to promote low-carbon hydrogen (produced using fossil gas) alongside renewable hydrogen, suggesting they are ‘complementary’. Furthermore, in an article written by Executive Director Daryl Wilson in November 2022 the Hydrogen Council appears supportive of other ‘clean’ hydrogen derivatives and their role in the energy mix with ambiguity as to the reduction of fossil fuels in production. The CLIMATE CH2AMPION campaign also appears to promote blue hydrogen as an option for helping to achieve climate goals.
However, in its Policy Toolbox report from 2021 the organization did appear to support the EU Hydrogen Strategy and its target of 50% renewable hydrogen consumption by 2030 and also appears to support phasing out fossil fuel subsidies in relation to making hydrogen more competitive.