A recent study emphasizes the significance of new safeguards to be implemented by the U.S. Treasury Department regarding hydrogen production tax credits to avert substantial climate impacts and misuse of taxpayer resources. The study reveals the potential risks associated with allowing hydrogen producers to claim high tax credits for producing 'gray' hydrogen from fossil natural gas, projecting a taxpayer cost of around $1 trillion over a decade and excess emissions of approximately three billion tonnes of CO2. The research, conducted by institutions like the University of Notre Dame and Princeton University, analyzes the Clean Hydrogen Production Tax Credit and highlights the impact of different design choices on clean energy industries. It discusses the need for aligning tax credits with environmental policies and the importance of robust technical safeguards to regulate hydrogen production efficiently. The study suggests key policy choices to mitigate risks, such as prohibiting feedstock blending, assigning negative carbon scores only to carbon removal activities, and assuming deep climate actions in baseline scenarios. The final Treasury Department regulations are in line with these recommendations, emphasizing the significance of careful implementation of life cycle analysis and regulatory measures to limit distortions. Notably, the authors stress the importance of anticipating potential distortions and recommend provisions to reclaim tax credits if facilities revert to polluting practices post-subsidy. Moreover, the research extends its analysis to clean electricity tax credits under the U.S. tax code, emphasizing the necessity for effective regulations in this sector as well. The study underscores the importance of implementing safeguards in policy design to ensure the long-term sustainability of clean energy initiatives. It suggests a cautious approach towards technological subsidies to avoid supporting practices that may not be environmentally sustainable in the long run. The authors advocate for the thoughtful application of life cycle analysis in policy design, acknowledging its importance while highlighting the need for vigilant consideration of potential distortions.