Currently, the world is progressing towards clean and green energy sources to strongly uphold the unfailing commitment to limit greenhouse gas emissions. India’s commitment to delivering climate change efforts is an inspiration for countries worldwide. In such a scenario the initiative to establish the Global Hydrogen Price Index (GHPI) must prove to be a boon in the country’s effort to transition to green hydrogen. It will also help in establishing India as the global hub of production, usage, and trade of green hydrogen.

It will boost the growth of the hydrogen economy in India and help to extend its presence globally by boosting investor’s confidence through a fair price discovery mechanism. For the same, an MoU by the International Financial Services Centre (IFSC) has been announced between Gujarat State Petroleum Corporation (GSPC) and Indian Gas Exchange (IGX) at Gujarat International Finance Tec (GIFT) City at Gandhinagar, Gujrat to advance strategic collaboration.

This initiative showcases the country’s commitment to developing viable energy solutions where GIFT City acts as the doorway to open opportunities in the field of green hydrogen. It will facilitate the development of a hydrogen price index attracting international organizations to do business in the domain. To achieve this GSPC united with IGX under the guidelines of IFSC GIFT City placing our country among the top players to set up such a mechanism.

The launch of the GHPI will be regarded as the touchstone that will play an essential role in regulating market prices and furnishing market information for swiftly uplifting the market of green hydrogen in India. This initiative will ensure the promotion of transparency for the evolving green hydrogen-based market on real-time pricing which can be accessed by the stakeholders, investors, and policymakers to facilitate further growth.

The IFSC, GIFT City falls in the Special Economic Zone (SEZ) and currently offers services in the insurance, asset management, fintech, capital markets, and banking domain. The formation of a sound pricing mechanism will empower the hydrogen price index to raise the confidence of the investors to make well-informed decisions based on varying prices and market shifts in the growing domestic and international green hydrogen market.