The Biden administration has issued finalized climate rules for the hydrogen energy industry, aiming to promote the adoption of hydrogen power as a key tool in reducing carbon emissions from challenging sectors like aviation, steel, and cement. The rules, set by the Treasury Department, determine the eligibility of facilities for tax credits to incentivize hydrogen production. While hydrogen energy itself is clean, its production processes can generate emissions. The regulations include standards for hydrogen production methods, like electrolysis and methane-based processes, along with industry-friendly provisions to support industry growth. Notably, the rules allow flexibility for existing nuclear plants and exempt certain states from additional power source requirements. Despite mixed feedback on methane-based hydrogen regulations, experts view the rules positively for advancing climate goals. Industry voices have lauded the changes, emphasizing the importance of federal policies in driving hydrogen industry development. The fate of tax credits and guidance remains uncertain with the change in administration, as Republicans consider energy tax credit changes. However, hydrogen energy is expected to remain a focus for future policy discussions.