Australia's Fast-Tracking of National Certification Scheme for Renewable Hydrogen
Key Ideas
  • The Albanese government in Australia is accelerating the implementation of a national certification scheme to verify the origins of hydrogen and electrons produced in the country.
  • The scheme aims to differentiate between renewable sources and fossil fuels like coal or gas, supporting the development of green industries with a focus on hydrogen categorization and other low carbon fuels.
  • By issuing digital certificates, producers can prove the source and emissions associated with their products, enabling eligibility for tax credits and boosting the competitiveness of Australian companies in the green industry sector.
  • Federal Labor's Guarantee of Origin Scheme will be operational by the second half of 2025, following increased funding to over $70.4 million and consultations for the scheme's design.
The Albanese government in Australia is expediting the establishment of a national certification scheme to authenticate the provenance of hydrogen and electrons produced in the country. This scheme, known as the Guarantee of Origin Scheme, aims to ensure transparency regarding whether these elements are sourced from renewable resources or from coal or gas. With a focus on boosting green industries, the scheme will categorize hydrogen into various colors of the spectrum, ranging from green for renewables to blue for gas and brown for coal. It will further encompass low carbon liquid fuels, green metals, and biomethane and biogas. The issuance of digital certificates will allow stakeholders to validate the production and transportation emissions of products. Notably, these certificates will facilitate eligibility for tax credits under the $6.7 billion Hydrogen Production Tax Credit announced in the 2024/25 Federal Budget. Federal Labor's assistant minister for climate and energy, Jenny McAllister, highlighted the importance of the Guarantee of Origin scheme in providing government-backed certification for the carbon intensity of key green products, giving Australian companies a competitive edge in the industry. The government is in the process of finalizing the enabling legislation for the scheme, with a targeted implementation timeframe in the second half of 2025 following consultations and design considerations.
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