The new Energy Department has launched a new certification scheme to verify the emissions credentials of UK-based hydrogen production.
Currently, there is no method to prove that hydrogen products are low carbon.
The government intends to begin consultation with interested parties with the aim to introduce the certification scheme by 2025.
Department for Energy Security and Net Zero Minister Graham Stuart said: “Consumers and businesses care about investing sustainably. Thanks to this new scheme, investors and producers will be able to confidently identity and invest in trusted, high-quality British sources of low carbon hydrogen, both home and abroad.
“I look forward to working with industry as we deliver hydrogen as a secure, low carbon replacement for fossil fuels that will help us move towards net zero, secure jobs and boost investment.”