The Biden administration has unveiled final rules for a tax credit aimed at promoting cleaner hydrogen production as part of efforts to reduce planet-warming emissions. The rules have drawn cautious praise from environmental groups, who acknowledge the potential to decrease greenhouse gases but also highlight loopholes that could still benefit producers of dirty hydrogen. The tax credit, introduced as part of the Democrats' Inflation Reduction Act, supports hydrogen production based on lifecycle emissions, allowing firms producing clean hydrogen to qualify for credits. This move is crucial for sectors like long-haul transportation and industrial manufacturing, including steel-making, that emit significant greenhouse gases and are challenging to electrify. While the announcement was generally welcomed by environmental advocates, concerns were raised about accurately tracking emissions from natural gas-produced hydrogen and ensuring that benefits are evenly distributed among all firms. The rules acknowledge various methods of hydrogen production, including splitting water with renewable energy sources like solar and wind, which have minimal planet-warming greenhouse gas emissions. The tax credit is considered one of the most ambitious policies globally to support the clean hydrogen industry, receiving support from members across the political spectrum. The final rules have been seen as a positive step towards reducing carbon emissions and transitioning towards cleaner energy sources in industries that are hard to decarbonize. However, challenges remain in ensuring that the tax credit effectively drives investments and advancements in the clean hydrogen sector for the benefit of both the environment and the economy.