Hydrogen can power Sino-EU green cooperation

Driven by China’s dual climate goals of peaking carbon emissions before 2030 and achieving carbon neutrality before 2060, and the green development policy of the Belt and Road Initiative, the country’s western region has taken the lead in exploring an integrated transport model combining hydrogen-powered heavy-duty trucks with the China-Europe Railway Express. In fact, the region has put to use the first batch of 30 hydrogen heavy-duty fuel cell trucks (HFCTs) for round trips between Chengdu, Sichuan province, and Chongqing municipality since Jan 30.

But the adoption of this integrated transport model is still limited because of insufficient hydrogen refueling infrastructure along key routes and the lack of mutual recognition between China and the European Union regarding hydrogen quality and safety standards. Hence, there is need to establish a China-EU collaborative mechanism to foster joint infrastructure development, align standards, and strengthen digital coordination to expedite the decarbonization of cross-border logistics.

As part of the New International Land-Sea Trade Corridor’s efforts to develop hydrogen refueling infrastructure, China has already established four key refueling stations in Chongqing, Guiyang, Guizhou province, Baise prefecture and Nanning, Guangxi Zhuang autonomous region, forming the backbone of its cross-border hydrogen supply network. As a result, HFCTs, which are mission-free and can travel long distances are now in regular operation along the corridor.

Yet China and the EU need to collaborate to establish cross-border hydrogen refueling hubs, creating a reliable 24/7 hydrogen supply network, to ensure seamless connectivity. This is all the more important because industry leaders across the hydrogen value chain are already collaborating to build high-end manufacturing clusters for hydrogen equipment and strengthen the green supply chain ecosystem.

China and the EU should also set up a joint investment platform to coordinate infrastructure development along the corridor, including strategic site selection, modular equipment deployment, and synchronized operations. By leveraging big data and artificial intelligence, China and the EU can develop smart forecasting tools and real-time tracking systems, which would monitor key data such as hydrogen stations, truck fuel levels, and delivery schedules to prevent shortages and maintain a reliable, round-the-clock cross-border supply chain.

A practical next step would be to create shared standards for hydrogen quality, safety checks and leak detection which both China and the EU recognize. Despite Chinese and EU companies competing in the hydrogen sector, there is huge potential for collaboration, especially because both sides have made hydrogen development a priority in their energy strategies.

The EU is working to transform its energy system by adopting clean hydrogen, focusing on better standards and infrastructure, while China has classified hydrogen energy as a strategic emerging industry and is taking measures to reduce the cost of green hydrogen production. As such, the two sides should form joint working groups with government officials, industry leaders and independent experts to develop clear standards for every stage of hydrogen energy use.

Besides, blockchain and internet of things technologies can help create a transparent, trustworthy system for monitoring green supply chains. By recording key data on the block chain — where it can’t be altered — logistics can be streamlined, resource allocation optimized and emissions reduced.

To boost their green supply chain cooperation, China and the EU need to align their standards in key areas including hydrogen purity levels, refueling station interfaces, blockchain networks and smart contract rules, in order to allow smooth data exchanges and easier compliance checks. Additionally, the two sides should adopt a full lifecycle management approach to build an integrated incentive and financing framework covering infrastructure construction, fleet renewal and carbon asset operations.

Moreover, policy support and green bond financing will expedite the construction and improvement of hydrogen production and refueling stations. By turning carbon reduction into real financial benefits, businesses can increase their incentives, which would allow them to replace traditional trucks with HFCTs. Also, a well-functioning carbon trading market can further encourage emission cuts, and blockchain and smart contracts can enhance transparency and accountability, ensuring compliance and helping build a multi-layered, diversified funding network.

There is also a need for China and the EU to establish a partnership to develop low-carbon logistics, involving governments, businesses and universities, to promote innovation and demonstration transport projects. The partnership could manage key logistics hubs, lead hydrogen and rail transport enterprises, and support research institutions. In other words, the partnership could build a joint research and development platform which would help clear technological bottlenecks, commercialize the research results and build demonstration projects in key cities.

Under the partnership’s framework, governments would provide policy and financial support, enterprises lead the implementation process, and research institutions achieve technological breakthroughs, forming a closed-loop mechanism of decision-making, research and development, pilot promotion, and synergizing the development of the Sino-EU green supply chain.

With collaborative efforts, HFCTs can play a bigger role in green logistics development.

Yin Yunqiang is a professor at the School of Management and Economics, University of Electronic Science and Technology of China. Wang Dujuan is a professor at the Business School, Sichuan University. The views don’t necessarily reflect those of China Daily.