The UK government has initiated a consultation on tax reforms to support clean hydrogen production and modernize the tax system. The current rules impose additional costs on businesses producing hydrogen through electrolysis due to the Climate Change Levy (CCL). In a bid to promote clean hydrogen as a key tool in decarbonizing heavy industries and transport, ministers aim to scrap these charges and reassess the role of CCL in the evolving energy landscape. Hydrogen, especially green hydrogen produced using renewable electricity, is crucial for hard-to-electrify sectors like steelmaking and heavy transport. The government plans to remove CCL costs on electricity used for electrolysis to reduce production expenses and attract investments in the sector. Financial support, including £90 million in capital grants for 11 hydrogen projects, is part of the strategy to bridge the cost gap between hydrogen and fossil fuels, aiding industry expansion. The consultation invites input from industry leaders to ensure a fair tax system that encourages investment in green technologies and supports the transition to clean energy, in line with the UK's net zero targets by 2050.