In pursuit of the 2050 carbon neutrality target, the Hong Kong SAR Government has promoted the adoption of battery electric vehicles in Hong Kong.

More than 70% of new private cars registered last year were electric, and EVs now account for approximately 17% of all private cars in the city. This is expected to reduce carbon emissions from road vehicles.

However, the increased weight and shorter range of EVs limit their widespread adoption for goods vehicles. As a result, hydrogen power is being considered as an alternative. One of the concerns regarding its application relates to the source of the hydrogen.

Western countries do not consider hydrogen to be an entirely clean energy source because it can be produced through various processes, some of which fall outside the scope of renewable energy. The overall production process, together with transportation involving fossil-fuelled vehicles, may result in such hydrogen being classified as grey rather than green.

To promote interoperability and ensure consistent sustainability claims across economies, the Electrical and Mechanical Services Department is developing a certification scheme. The scheme is intended to establish a framework incorporating internationally aligned assessment standards, accreditation mechanisms and certification processes. The objective is to attract investment and support hydrogen trade and the green energy transition in the Chinese mainland and Hong Kong.

The proposed scheme defines the system boundary, emission calculation methodology and threshold setting to establish a certification framework that is internationally comparable. It is primarily aligned with the European Union, which has developed regional hydrogen frameworks and associated certification practices.

The system boundary covers the process from feedstock extraction to production, conditioning and conversion, as well as transportation to and storage at the supply point.

Regarding threshold setting, the European Union currently applies a greenhouse gas emission threshold of 3.384 kgCO2eq/kgH2 for green hydrogen. This level is associated with renewable energy production via water electrolysis, combined with green transportation and storage.

The Electrical and Mechanical Services Department proposes adopting the same threshold value but does not mandate production exclusively through renewable energy, taking into account the limited availability of renewable energy resources in Hong Kong and the use of emerging technologies for hydrogen production. The department also proposes introducing a category of low-carbon hydrogen to allow hydrogen production to qualify as a transitional activity, subject to an emission value of 4.86 kgCO2eq/kgH2.

The transitional threshold is intended to allow producers of low-carbon hydrogen to move towards green classification. This includes producers applying decarbonisation measures, such as carbon capture, utilisation and storage, provided that coal or coal derivatives are not used as feedstock and that dedicated energy sources from oil, coal or coal derivatives are excluded.

The Hong Kong Monetary Authority has published the Hong Kong Taxonomy for Sustainable Finance (Phase 2A), which includes hydrogen manufacturing. The threshold and system boundary parameters are aligned with the proposed certification scheme and set specific requirements for green and transitional activities, including criteria relating to feedstock and energy sources.

Applicants under the proposed certification scheme are encouraged to obtain taxonomy-aligned status under the two categories.

The Electrical and Mechanical Services Department is inviting responses and comments from the trade and industry.

Government departments and relevant authorities, including those within the financial sector, are involved in supporting the development of technologies aimed at reducing carbon emissions.

Access to finance is a factor in the advancement of such initiatives, and incentive measures are expected to support the technological development required to meet the stated objectives.