As the world’s second-largest economy and the largest emitter of CO2, China has a key role in achieving the goals of the Paris Agreement. Since 2020, China has significantly increased its climate ambitions, defining hydrogen as a key sector of its decarbonisation strategy. Today, China is the largest producer in the world of predominantly grey hydrogen and the Chinese hydrogen production is expected to triple by 2060.
This factsheet explores the existing hydrogen economy, strategies, and opportunities and challenges of future hydrogen development in China. The prospect of green hydrogen development is the focus of our analysis. The findings are based on an extensive literature review and interviews conducted in 2021 with key players in the hydrogen sector in China.