Unlocking Opportunities: A Framework for Assessing Green Hydrogen Potential in Emerging Markets

Unlocking Opportunities: A Framework for Assessing Green Hydrogen Potential in Emerging Markets provides a framework for developers, investors, and policymakers to explore the potential of green hydrogen and create opportunities for new industries, foster job creation, and enhance resilience to address global challenges.

Green hydrogen shows great potential to decarbonize sectors such as fertilizers, steel, and heavy transport, which depend on traditional industrial processes that are challenging to decarbonize. By incorporating green hydrogen into their industrial and energy strategies, countries can create opportunities for new industries, foster job creation, and enhance resilience to global challenges.

Economic viability remains a consideration. While government targets are ambitious, demand from off-takers is currently limited, primarily due to high production costs, as well as challenges in policy and deployment. 

There are four key recommendations to harness the full potential of green hydrogen to advance clean energy transitions:

1. Define the optimal role for green hydrogen in a country’s and region’s economy. 
2. Focus on strategies and policies at the national and global levels to find the optimal technologies, infrastructure, systems, and mechanisms to reduce cost and incentivize sustainable production of green hydrogen.
3. Collaborate across borders.
4. Provide de-risking solutions to stimulate demand, to match supply and demand, and ultimately to facilitate the adoption of lower-carbon systems across various sectors of the economy.

This framework seeks to help guide developers, investors and policymakers. It highlights the importance of a supportive enabling environment, focusing on clear strategies, government-backed investment mechanisms, cohesive regulations, and active private sector engagement. There is no one-size-fits-all approach; countries should tailor their strategies to align with their unique strengths, priorities, and challenges to develop a successful green hydrogen market.

Related Links

• Clean Hydrogen Scaling Up to Meet Net Zero Emissions Targets

• Enabling Green Hydrogen in Emerging Markets (Event replay)