Context: The International Financial Services Centre (IFSC) at GIFT City has announced to establish a Global Hydrogen Trading Mechanism (GHTM).

About Global Hydrogen Trading Mechanism (GHTM)

• The International Financial Services Centre (IFSC) at GIFT City, in collaboration with the Indian Gas Exchange (IGX) and Gujarat State Petroleum Corporation (GSPC), is spearheading the creation of a Global Hydrogen Trading Mechanism.

• A Memorandum of Understanding (MoU) for this collaboration was signed during the Vibrant Gujarat Global Summit 2024.

• It is a central aspect of this collaboration is the launch of the Global Hydrogen Price Index.

• This initiative places GIFT City at the forefront of the emerging green hydrogen economy, being the second of its kind globally.

Key Developments

• The initiative aims to enhance market transparency, boost investor confidence, and facilitate global growth in the green hydrogen sector.

Role of GIFT City and GSPC

• GIFT City SEZ, as an International Financial Services Centre, will play a pivotal role in this mechanism, with existing operations in diverse financial and trading sectors.

• GSPC, in collaboration with IGX, will work towards developing an index for hydrogen trading and attracting global institutions to trade in GIFT IFSC.

Infrastructure and Future Plans

• GIFT City's ongoing expansion is part of its development into a premier international financial centre.

• The Gujarat government’s Green Hydrogen Mission aims for 3 MMTPA hydrogen production by 2030, with a significant investment and land allocation, aligning with the national hydrogen production targets.

About Global Hydrogen Price Index

• The Global Hydrogen Price Index, a crucial aspect of the GHTM, is being developed as a benchmark for price discovery and market information in the green hydrogen market.

• This index is fundamental in providing transparency and reliability for investors and market participants.

• The development of the Global Hydrogen Price Index is a collaborative effort between GSPC and IGX.

• The index will serve as a standard for pricing, essential for the evolving market dynamics of the green hydrogen sector in India and globally.