EU’s Climate Playbook: Cheaper to Close India’s Coal than Burn Hydrogen at Home, Says TotalEnergies

TotalEnergies' sustainability officer recently emphasized a significant insight into the European Union's climate strategy. According to the officer, the EU finds it financially cheaper to support the shutdown of coal-fired power plants in India rather than investing heavily in hydrogen-based steel production domestically to achieve decarbonization targets. This viewpoint sheds light on the economic and practical challenges the EU faces in scaling hydrogen technologies for industrial use, particularly steel manufacturing, a major carbon emitter.

 

The statement reflects broader questions around the geopolitical and economic dimensions of climate action. While hydrogen—especially green hydrogen—remains a cornerstone of Europe’s decarbonization roadmap, the costs and technical complexity of replacing conventional steel production domestically appear higher compared to providing financial incentives for cleaner energy transitions abroad.

 

This strategic contrast has implications for investment flows, industrial policy, and international cooperation on climate efforts. It also highlights the continuing role of financing in aligning global climate goals with sustainable economic development, suggesting that practical and economic considerations influence the pathways chosen for emission reductions.

 

Notable Updates:

Source: Reuters, TotalEnergies official statements, sustainability reports from TotalEnergies