Japan and India are set to start a policy dialogue to enhance cooperation in advanced industries, including semiconductors and hydrogen fuel, as reported by Nikkei Asia on July 17. The two countries plan to sign a memorandum of understanding (MoU) to facilitate partnerships between their respective private sectors in these fields. The MoU aims to coordinate incentives and rules to promote collaboration in advanced industries. Japan and India seek to agree on safety regulations regarding hydrogen transportation. Japan intends to encourage India to ease the regulations on hydrogen transportation, as India still lacks pipelines for hydrogen delivery due to strict supervision.
The signing of the MoU is expected to take place during Japan’s Energy Minister Nishimura Yasutoshi’s visit to India for the G20 Energy Ministers’ Meeting, where clean energy and transition will be on agenda. Furthermore, Japan and India are planning to establish a joint credit mechanism (JCM) that will enable buyers of green hydrogen to receive the carbon emission credits generated from the production of green hydrogen. Japan has already signed such agreements with 26 countries as part of efforts to achieve its decarbonization goals. On the other hand, India aims to become a major exporter of hydrogen and has set a target of 5 million tons of annual renewable hydrogen output by 2030, with aspirations to capture a 10% market share in the global hydrogen trade.