The Dutch government has put forward a proposal for an industrial obligation aiming to promote the use of renewable hydrogen in the industrial sector. This initiative is in line with the Renewable Energy Directive (RED III) targets for industrial decarbonisation. The scheme, named renewable hydrogen industry units (HWI), targets industrial participants using more than 0.1kt of hydrogen per year. Market participants will receive HWI credits for each unit of renewable hydrogen, RFNBO, used in industry. These credits can be utilized to demonstrate meeting obligations or traded with other obligated parties. Notably, hydrogen usage related to ammonia production is exempt from this obligation under the Dutch scheme. The proposal aligns with recent guidance from the European Commission, emphasizing the significance of transitioning to renewable energy sources. For further details on the framework of the proposal, ICIS has provided an infographic explainer. This move by the Dutch government reflects a positive step towards fostering the adoption of renewable hydrogen and advancing the energy transition in the industrial sector.