Polluters Are Gaming the System on Hydrogen Credits: Fred Krupp

The Inflation Reduction Act, the Biden administration’s signature legislative achievement, was intended to do more than bring prices down: It also contained smart provisions to protect the climate. Now, the fossil-fuel industry is lobbying to secure loopholes in rules on hydrogen-production incentives that will reward them but hurt the planet.

This multibillion-dollar fight is rooted in the fact that hydrogen can be produced in several ways. More than 90% of hydrogen today is “gray” hydrogen made from fossil fuels: It’s very dirty and bad for the climate. But the IRA provides tax credits for “green” hydrogen, made using renewable ...