[SMM Hydrogen Policy Update] Ministry of Ecology and Environment: Releases "Greenhouse Gas Voluntary Emission Reduction Project Methodology for Renewable Energy Electrolysis Water Hydrogen Production (Draft for Comments)"

On October 12, 2025, the Ministry of Ecology and Environment solicited public comments on six methodologies, including the "Greenhouse Gas Voluntary Emission Reduction Project Methodology: Renewable Energy Water Electrolysis for Hydrogen Production (Draft for Comments)," along with multi-sector policies such as the "Measures for the Management of Inter-provincial and Inter-regional Emergency Power Dispatch," the "Fuel Consumption Limit Standards for Energy-efficient Vehicles," the "Technical Requirements for New Energy Vehicle Products," and the "Notice on Subsidy Applications for Distributed PV in Shaanxi Province's Xixian New Area."

I. Core Policy: Greenhouse Gas Voluntary Emission Reduction Methodology for Renewable Energy Water Electrolysis for Hydrogen Production

1. Release Background and Purpose: Renewable energy water electrolysis for hydrogen production is the primary source of clean, low-carbon hydrogen energy and can advance the "dual carbon" goals. This methodology is used to standardize the design, validation, accounting, and verification of emission reductions for such projects.
2. Applicable Conditions: Applicable only to new projects, which must meet six conditions, including a ≥90% share of power supply from self-owned wind/PV power plants, no registration of other emission reduction projects for the power plant, fresh water usage ≤5% of the total water resources in the prefecture-level city where located, and data interconnection with the national carbon market management platform.
3. Key Technical Content
   • Emission Reduction Accounting: Emission reductions are calculated by subtracting project emissions (emissions from consuming regional grid power) from baseline emissions (emissions from substituting fossil fuel-based hydrogen production), with leakage emissions considered negligible.
   • Monitoring Requirements: Specifies parameters to be monitored during design and implementation stages, such as hydrogen volume fraction, pressure, temperature, and electricity consumption. Measurement instruments require regular verification and calibration, and data must be interconnected in real-time and retained for at least 10 years.
   • Validation and Verification: Verification bodies must confirm project applicability, boundaries, and compliance of the monitoring plan, cross-check emission reduction data, and ensure conservative parameter values.
4. Compiling Units: Led by China Huadian Group Carbon Asset Operation Co., Ltd., and jointly compiled by 16 units including the China Hydrogen Alliance and the Environmental Development Center of the Ministry of Ecology and Environment.

II. Supporting Policy Content

1. Measures for the Management of Inter-provincial and Inter-regional Emergency Power Dispatch
   • Applicable Scenarios: Provides a backstop dispatch mechanism implemented in the day-ahead and intraday stages when market-based measures cannot resolve power security or supply shortfalls. Effective from October 1, 2025, with a validity period of 5 years.
   • Pricing and Settlement: The on-grid tariff for the sending province references the provincial market trading price, while the landing price for the receiving province is set at the spot market price cap. Profits or costs are shared or borne by relevant parties.
2. Energy-efficient and New Energy Vehicle Standards
   • Energy-efficient Vehicles: Categorized into passenger cars, light commercial vehicles, and heavy commercial vehicles (trucks, tractors, buses, etc.), with different fuel consumption limits set based on curb weight or maximum design total mass, tested under conditions such as WLTC or CHTC.
   • NEVs: The technical requirements for battery electric, plug-in hybrid (including range-extended), and fuel cell vehicles were clarified, such as a driving range of ≥200 km for battery electric buses and a rated power of ≥50 kW for the fuel cell system.
3. Distributed PV Project Subsidies in Shaanxi Province Xixian New Area
   • Scope of Application: Distributed PV projects connected to the grid in the New Area from 2019 to 2023. Projects connected to the grid from 2019 to 2020 must use "Leader" standard modules from within the city.
   • Subsidy Standards: The subsidy rates were 0.25 yuan per kWh for projects connected to the grid from 2019 to 2020 and 0.1 yuan per kWh for those connected from 2021 to 2023. The subsidies were shared between the New Area and the New Town according to the fiscal system, with the application deadline being October 23, 2025.