Project Title

Certification of Hydrogen and its Derivatives in APEC Economies: its role in driving the market 

Project Year

2024   

Project Number

EWG_105_2024A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

EWG_105_2024A 

Project Title

Certification of Hydrogen and its Derivatives in APEC Economies: its role in driving the market 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Energy Efficiency, Low Carbon and Energy Resiliency Measures (EELCER) 

Project Year

2024 

Project Session

Session 1 

APEC Funding

99,960 

Co-funding Amount

14,800 

Total Project Value

114,760 

Sponsoring Forum

Energy Working Group (EWG) 

Topics

Energy; Trade Facilitation; Conformance; Standards 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Chile 

Co-Sponsoring Economies

Canada; Hong Kong, China; Korea; Peru; Singapore; United States 

Expected Start Date

01/10/2024 

Expected Completion Date

30/10/2025 

Project Proponent Name 1

Adelaida Baeriswyl 

Job Title 1

International Affairs Advisor 

Organization 1

Ministry of Energy of Chile 

Postal Address 1

Not Applicable 

Telephone 1

(+56) 2 2367 3732 

Fax 1

Not Applicable 

Email 1

abaeriswyl@minenergia.cl 

Project Proponent Name 2

Isabella Villanueva 

Job Title 2

Climate Change Analyst, Strategic Planning Division 

Organization 2

Ministry of Energy of Chile 

Postal Address 2

Not Applicable 

Telephone 2

(+56) 2223656894 

Fax 2

Not Applicable 

Email 2

ivillanueva@minener gia.cl 

Declaration

Adelaida Baeriswyl 

Project Summary

The certification of hydrogen and its derivatives are schemes by which the origin and attributes of hydrogen, ammonia, and synthetic fuels to be traded from APEC economies to the world can be accredited. It is essential to comply with the highest standards, as well as to be in line with commitments and regulatory requirements in social or environmental matters of the economies that allow the traceability of the product for the final consumer. The project seeks to analyze the best-known international standards to date and how APEC economies are implementing the necessary institutional arrangements to be able to comply with the certification of renewable hydrogen and its derivatives, such as ammonia and low or zero emission synthetic fuels. Through a technical exchange and information gathering, a workshop and a technical report will be developed to systematize and synthesize the discussions and provide recommendations on the implementation of these arrangements.

Relevance

Region

Green and low-carbon hydrogen and its derivatives are anticipated to play a vital role in the global transition to sustainable energy, particularly in sectors difficult to decarbonize. Despite its potential, current hydrogen production heavily relies on fossil fuels, posing a challenge. Certification of sustainability attributes for renewable hydrogen is crucial for market credibility, but enforcement of clear international regulations remains a challenge. The diversity and uncertainty of such regulations makes it difficult to ensure compliance with consistent standards and rules across different jurisdictions. As a result, multiple tracking systems may emerge globally, leading to uncertainty among investors. Standardization of certification processes can facilitate the development of green and low-carbon hydrogen trading and establish an international market. This, along with

internationally recognized certification mechanisms, is crucial for promoting transparency and credibility in the emerging green and low-carbon hydrogen market.

The topic of the projects is expected to benefit all APEC economies, especially considering the relevance of hydrogen highlighted by Peru as APEC host in 2024 and the “APEC policy guidance to develop and implement low-carbon hydrogen policy frameworks in the Asia-Pacific” that is expected to be developed in 2024.

Eligibility and Fund Priorities

The project is within the final list of priorities is endorsed by senior officials at the Informal Senior Officials Meeting (ISOM). In particular, this project contributes to the GPA funding priorities for 2024 through the topic: Trade and investment for inclusive and interconnected growth by building confidence among investors, consumers, and other stakeholders, fostering increased investment, market demand, and adoption of green and low-carbon hydrogen technologies. Moreover, certification facilitates market access by harmonizing regulations and creating a level playing field for green and low-carbon hydrogen producers and suppliers. 

The project will significantly contribute to the 2030 goal of doubling the share of renewables by supporting the development of a low hydrogen and its derivatives market in the APEC region, by suggesting relevant considerations to implement certification schemes. Additionally, the initiative aims to address capacity building requirements for APEC developing economies, equipping them with the necessary tools to build a resilient and interconnected region that advances broad-based economic prosperity. 

Recognized as a category 2 project for funding, its primary objective is not to support energy resilience but to enable an innovative environment for a sustainable future. By establishing clear and internationally recognized standards, certification encourages innovation and technological advancements in green and low-carbon hydrogen production, storage, and distribution. It incentivizes research and development efforts aimed at improving efficiency, reducing costs, and scaling up production capacity.

Capacity Building

The project is aligned with part of APEC's capacity building goals, such as achieving sustainable growth and equitable development in the Asia-Pacific region through the promotion of a strengthened regulatory framework for renewable hydrogen and its derivatives, as well as reducing economic disparities among APEC economies through the promotion of collaborative work and common standards, which in turn deepens the spirit of community in the Asia-Pacific. 

In addition, the project will enable APEC economies to build capacity, knowledge and institutions to promote low- or zero-emission fuels, in line with APEC members' climate and just energy transition goals. On the other hand, it will contribute, through certification mechanisms, to APEC economies interested in hydrogen and its derivatives to have a solid base and recommendations for the implementation of a certification system that will allow them to participate more fully in the regional economy, as well as in the process of liberalization and facilitation of trade and investment in these energies.

Objectives

To assess the certification scheme implementation in APEC economies, identify gaps and challenges, and determine the prevailing standards within domestic markets. The objective is to facilitate a technical exchange and enabling the development of recommendations for a harmonized system.

This collaborative approach aims to enhance synergies among economies engaged in exporting and importing hydrogen and its derivatives.

Alignment

APEC

Alignment with the 2023 APEC Leader’s Golden Gate Declaration: The project is aligned with the 7th paragraph where is “recognized that more intensive efforts are needed for economies to accelerate their clean, sustainable, just, affordable, and inclusive energy transitions through various pathways while taking into account the latest scientific developments and different domestic circumstances.” This initiative is designed to expedite the transition from fossil fuels to renewable energy sources and facilitating the development of the hydrogen market in the APEC region. 

Alignment with the APEC Putrajaya Vision 2040: The project is aligned with the drivers “trade and investment” and “Strong, Balanced, Secure, Sustainable and Inclusive Growth” of the Putrajaya Vision, since it aims to support APEC economies energy transitions by supporting the creation of a hydrogen market through the analysis of its certification.

Forum

Alignment with the Energy Working Group: This project contributes to the expected outcomes of the EWG for 2024 by supporting the clean, sustainable, just, affordable, and inclusive energy transitions through various pathways, and the efforts to triple renewable energy capacity globally through existing targets and policies as well as demonstrate similar ambition with respect to other zero and low emissions technologies. Alignment with the “Chair’s Statement of the 13th APEC Energy Ministerial Meeting” (2023): The project aligns with the 4th paragraph regarding “we welcome the intention to identify best practices for developing and implementing hydrogen efforts in the Asia- Pacific region in a coherent manner as an area of future work.” Furthermore, it support the adoption of new and renewable energy, together with balancing and back-up capacity, and other clean energy technologies, including, among others, hydrogen produced from zero and low emission technologies.

Alignment with Peru priorities 2024: The project aligns with the third priority defined by Peru for 2024 “Sustainable growth for resilient development”, specifically by supporting the development of low-carbon hydrogen market for the energy transition.

Furthermore, the project aims to strengthen cooperation among APEC economies by facilitating the exchange of experiences in its focus area. This collaboration is poised to drive the transition towards a low-carbon economy, curbing greenhouse gas emissions, and catalyzing the growth of clean energy across these economies.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs

1)  Preliminary Survey Report based on Online Survey Identifying Barriers and Challenges and Current State of Regulatory Frameworks

The online ex-ante survey aims to collect detailed information on the current state of regulatory frameworks for green and low-carbon hydrogen, focusing on identifying gaps and challenges. Conducted over two months and accessible online, the survey targets a broad range of stakeholders within APEC economies, such as government officials and policy makers from APEC co-sponsoring economies, certification bodies and research institutions. The results will be imputs for the technical workshop and contribute to the development of standardized and widely accepted certification frameworks. The timeline proposed for this activity includes preparation and design (2 months), launch and distribution (2 months). Upon closure of the survey period, the consultant will clean and prepare the survey data for analysis (1 week) and then proceed to analyze the data, generate insights, and prepare a comprehensive preliminary survey report of a minimum of 40 pages, excluding annexes, within the agreed-upon timeline (3 weeks).

2) In-Person Technical Workshop in Santiago, Chile

The workshop targeting different stakeholders within APEC economies aims to facilitate discussions and foster technical exchange on green and low- carbon hydrogen certification schemes. With a diverse participant base and comprehensive agenda, the workshop will address key challenges and opportunities for the development and implementation of standardized and widely accepted certification frameworks. Conducted in-person in Santiago, Chile with a duration of 2 days, the workshop will provide a platform for knowledge exchange, stakeholder engagement, and consensus-building for interoperable and compatible certification schemes which is a key factor for the growth of the green and low- carbon hydrogen economy in the APEC region. A preliminary agenda includes four to five work sessions of 1 hour a day, including technical presentations and Q&A, panel discussion with experts followed by a moderated group discussion, hands-on workshop in small groups, case studies followed by Q&A, round table discussions, recap, and participant feedback. Key timelines involve the preparation phase (6 months), workshop execution (1 week), and post-workshop activities (3 months).

3) Final Report and Technical Recommendations (referred to herein as Final Report)

The Final Report serves as a comprehensive documentation of the key findings, analyses, and discussions arising from the ex-ante and ex-post surveys, as well as the technical workshop on hydrogen certification. This report aims to provide valuable insights and recommendations for advancing hydrogen certification initiatives within APEC economies, supporting policy development, capacity building, and stakeholder engagement efforts in the field. The Final Report will have of minimum 60 pages, excluding annexes. Key timelines include: data compilation and synthesis, analysis of In-Person Technical Workshop discussions (2 months), ex post and ex ante survey analysis (1 month), drafting, review process and publication (1 month). The Final Report will be published as an APEC Publication.

Outcomes
1)  Identify gaps, align strategies, and work towards harmonizing standards:
The preliminary survey report, based on an online survey, will provide a comprehensive overview on existing gaps towards the harmonization of the standards for hydrogen and schemes certifications in various APEC economies. This outcome will highlight the barriers and challenges, regulatory frameworks and institutional arrangements that are currently in place or developing, offering valuable insights into the diversity and commonalities of approaches within the region. By understanding the current status and practices of hydrogen certification, stakeholders can identify gaps, align strategies, and work towards harmonizing standards.

2) Improved policy alignment: Through technical exchanges and capacity-building activities, participating institutions will gain insights into the regulatory landscape and policy frameworks related to hydrogen certification as well as an overview about the state-of-art in specific APEC economies. As a result, it is expected to strengthen the hydrogen industry ecosystem for APEC economies, especially those involved in this project, who at the end of its execution will have a clear vision of how each economy is approaching and/or addressing the challenges in the definition of standards and the use of certification schemes, which could also contribute to trade between economies in the region that are advancing in the development of green and low-carbon hydrogen. The evaluation method will be the ex-ante and ex-post survey.

3) Comparative analysis and recommendations: Identification of convergences and divergences between hydrogen certification systems in the economies involved in the project, highlighting success stories and/or lessons learned that could be considered by the co-sponsor economies to strengthen the green and low-carbon hydrogen trade and industry.

Beneficiaries
The direct project participants include government officials and policymakers from APEC economies who are responsible for designing and implementing green and low-carbon hydrogen certification schemes in the energy sector. These participants are typically experts in energy policy, regulation, and certification standards, with roles ranging from senior policymakers to technical specialists within relevant government departments or agencies. They represent a diverse range of economies within the APEC region, including both developed and developing economies.

Dissemination

The output Final Report will be disseminated through various channels to ensure wide accessibility and visibility. Firstly, the Final Report will be published as an electronic APEC Publication on the APEC website, which will enhance its credibility and recognition within the APEC community. Additionally, it will be made available electronically on the Ministry of Energy websites of APEC co-sponsor economies, ensuring easy access to stakeholders across the region.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

This project ensures comprehensive and broad engagement with diverse groups both within and outside APEC by involving government agencies, the APEC Energy Research Center, and the APEC Energy Working Group to align with economies' policies. It actively engages through technical exchanges and capacity-building in working sessions the private sector, including companies, industry associations, and certifying bodies, to identify shared obstacles and progress towards establishing practical and widely accepted certification schemes. Building on Chile’s collaboration with the EU and GIZ, the project incorporates insights from these partnerships to enhance its certification framework. Collaboration with international organizations like the EU, GIZ, and the IEA, as well as non-APEC economies, brings global perspectives and best practices into the framework. By including academic institutions and civil society organizations, the project addresses social and environmental concerns, promoting inclusivity and sustainability. This broad engagement avoids duplicating efforts, ensures strategic coordination, enhances credibility, and fosters knowledge transfer, positioning the APEC region as a leader in sustainable energy transitions.

This project builds on the APEC 2022 project on green and low-carbon hydrogen and sets out the lessons learned, and the degree of consensus reached on what an international standard on green and low-carbon hydrogen could look like. In addition, the APEC Energy Research Center (APERC) plans to publish the first APEC Hydrogen Outlook. Taking into consideration these developments, this project aims to deepen the previous work done and go beyond the scope of regulatory frameworks and actively engage stakeholders from the private sector. By involving companies, industry associations, and certifying bodies, the project seeks to establish consensus and harmonization in certification standards and advance on how to implement them across diverse jurisdictions within APEC Economies.

This collaborative approach ensures the continuity of the work carried out by the APEC economies, with focus on a comprehensive strategy that not only avoids duplicating efforts but also emphasizes effective communication channels, involvement of diverse stakeholders, and strategic coordination. By sharing insights, resources, and strategies, the project aims to optimize collective efforts, ensuring a synergistic and streamlined approach to hydrogen certification.

Given APEC's focus on energy efficiency, renewable energy, and reducing carbon emissions, funding this project aligns perfectly with APEC's strategic objectives. The collaborative nature of APEC allows for the pooling of expertise and resources, ensuring that the project leverages the best practices and lessons learned from previous initiatives within the region. Furthermore, APEC's extensive network and established mechanisms for stakeholder engagement will be crucial in achieving consensus and harmonizing certification standards across diverse jurisdictions.

Sustainability

The project is designed to ensure long-term impact and sustainability beyond the APEC funding period. This will be achieved through several key strategies aimed at supporting beneficiaries and ensuring the continuation of efforts initiated by the project. 

After the project completion, the next steps to build on its outputs and outcomes include analyzing and advancing on the implementation of the recommendations from the final technical report, organizing follow-up virtual workshops to review progress, and establishing mechanisms for ongoing monitoring and reporting. Stakeholders will be encouraged to integrate these recommendations into their policies and regulatory frameworks. To ensure these actions take place, a system for regular updates and progress reports will be established, including annual surveys or virtual meetings.

Specific indicators and metrics will be developed to measure progress such as the number of economies attending each meeting and responding to annual surveys. Additionally, a feedback mechanism will be put in place to gather stakeholder input and address any challenges. By documenting and sharing success stories, case studies, and best practices, stakeholders will be motivated to continue advancing on hydrogen certification initiatives.

Project Overseers

Not Applicable.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Waivers

Not Applicable.

Are there any supporting document attached?

Yes 
Attachments
Version: 2.0 
Created at 06/10/2024 20:57  by Lucy Phua 
Last modified at 06/10/2024 20:59  by Lucy Phua 
Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
Attachments
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