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Coordination

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Our mission in this field

We are dedicated to advocating for developing countries.

To leverage the potential of the hydrogen economy, developing countries need to coordinate their strategic and implementation plans and consolidate resources efficiently. 

The development of a hydrogen economy represents a promising and multi-faceted endeavour that requires close cooperation and coordination between various stakeholders at national, regional, and international levels. At the national level, it is essential to provide a voice to all relevant partners: ministries, industry and business, financial institutions, academic and research organizations, local community and NGOs to ensure that all voices are heard and ensure a more inclusive and sustainable hydrogen transition. At the regional level, there may be a need to integrate infrastructure and share the risks and benefits of hydrogen projects, all requiring regional collaboration.  International collaboration is crucial for addressing challenges and bottlenecks through knowledge sharing, technology adoption, intergovernmental MoU, financing, and certification to bridge gaps and ensure the acceleration of a hydrogen economy. 

The multi-stakeholder approach resonates with the UNIDO strategy to promote an inclusive and just hydrogen economy. Through its Global Programme for Hydrogen in Industry, UNIDO maintains regular communication with relevant stakeholders from the Member States. This collaborative approach facilitates an in-depth understanding of the emerging economies' requirements and fosters constructive dialogue and information exchange among them.

UNIDO is also actively participating in global fora activities such as G20, COP and many other hydrogen-specific platforms to advocate for the specific needs and challenges its Member States face when pursuing their hydrogen visions.

UNIDO actively participates in various international initiatives, such as the Hydrogen Breakthrough Agenda, with the aim of coordinating efforts to effectively resolve the bottlenecks of hydrogen development.

In July 2023, during the 14th Clean Energy Ministerial (CEM14) Meeting, the founding members of the International Hydrogen Trade Forum requested that UNIDO take on the coordinator role. In this capacity, UNIDO facilitates cooperation among government members and industrial leaders and incorporates the perspectives and considerations of developing countries and transition economies. UNIDO supports forming a global hydrogen market by facilitating dialogue and leveraging its extensive network for technical assistance and policy guidance.

“UNIDO’s commitment to the International Hydrogen Trade Forum aligns well with its Global Program for Hydrogen Industry objectives. We see a fitting role for UNIDO to help bridge the gap between countries within the CEM community and those who are not part of the CEM yet”, stated the DG Müller of UNIDO.

 


 

 

Highlights

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2 February 2024 News
UNIDO, IRENA and IDOS publication to help developing countries navigate green hydrogen policy
On the way towards an inclusive and sustainable green hydrogen transition, countries face numerous challenges: they lack strategies, regulatory frameworks, investment incentives, know-how and more. Sound policymaking will be key to realizing green hydrogen’s potential, yet guidance on adequate measures is scarce.Based on their institutional mandates to promote the widespread and sustainable use of clean energy worldwide for inclusive and sustainable industrialization and the global common good, UNIDO, IRENA, and IDOS have contributed their own specific expertise to co-author a policy report titled, Green hydrogen for Sustainable Industrial Development: A Policy Toolkit for Developing Countries.This comprehensive publication is the first to encompass the entire green hydrogen value chain - including backward linkages, production and end-use - with a specific focus on developing countries. It highlights green hydrogen's transformative potential, offers strategic guidance for equitable benefits distribution, and includes detailed policy sheets that outline the policy options to this end.The report challenges the conventional view of green hydrogen as primarily an export commodity from countries rich in renewables but lacking in industrial power. Instead, the focus is shifted to the potential of green hydrogen to drive economic growth, environmental sustainability, and social progress within these countries in order to ensure the distribution of potential benefits in the most equitable manner.“An essential prerequisite to the global scale up of green hydrogen uptake is the development of the necessary policy and legal frameworks and coordinating international standards. Without regulatory clarity, green hydrogen projects are unable to move forward as they cannot plan or assess risk. This toolkit aims to guide policymakers in developing a regulatory environment that enables green hydrogen production,” wrote Gerd Müller, Director General of UNIDO, Francisco La Camera, Director General of IRENA and Prof. Dr. Anna-Katharina Hornidge, Director of IDOS, in their joint foreword.The Toolkit equips policymakers with the latest strategies, challenges, and solutions for creating a local value chain around green hydrogen production. The report can be downloaded here.  
1 February 2024 Article
Embracing a dual GH2 strategy: domestic use and trade
International trade in green hydrogen (GH2) is shaping up to be an attractive endeavour that redraws global energy supply patterns – as such, GH2 producers are pondering strategies for market engagement. The global effort to decarbonize hard-to-abate industries relies on the involvement of developing countries with abundant renewable resources, while industrialized countries remain the demand centres for hydrogen imports. IRENA projects  global GH2 production to reach approximately 492 million metric tonnes by 2050, of which around 25% is expected to be traded internationally. But opportunities for GH2-producing countries of the global South go beyond the benefits of direct export.Trade opportunities and barriersExporting GH2 and Power-to-X (PtX) derivatives can fuel economic development. The projected interregional trade of GH2 is projected to reach  USD 280 billion in 2050, with over half of its revenues estimated to be generated in developing countries.2 By participating in international energy markets, countries can attract foreign investment exceeding the amount required for local decarbonization efforts. This can lead to a cascade of economic benefits, including increased foreign exchange earnings, tax revenues and local economic activity. However, tax exemptions granted to investors (who are typically permitted to operate in special economic zones) curtail the host country’s tax revenues.Exports can not only enhance the trade balance but also empower countries within the global energy framework, increasing autonomy and political significance3. International GH2 trade may also facilitate knowledge transfer, accelerating socioeconomic development in exporting countries. Most potential export countries will depend heavily on imports of industrial equipment, which may considerably reduce net export revenues. Nonetheless, the overall expansion of technological capabilities enhances domestic research, development, and innovation.4Despite ambitious goals, the growth of the international GH2 market has been slow so far, with less than 100 kilotonnes of electrolysis-produced hydrogen in 2022 – far below the projected 2050 demand.5 International transport – especially maritime – of GH2 faces technological and regulatory uncertainties, significantly raising landed costs for the 45% of trade volume that likely won’t be able to rely on pipelines.6 The uncertainty in the scale and dynamics of GH2 trade, coupled with considerations of self-sufficiency and blue hydrogen as a transitional technology in industrialized economies, poses challenges to prospective GH2 exporters.Strategic state of playRealizing the pivotal role they can play in the emerging GH2 market, many developing countries have enshrined trade objectives in their national hydrogen strategies. In most cases, these strategies declare a country’s intent to export, import or achieve self-sufficiency, shaping their global market role and collaboration aspirations. Some governments identify specific regions for promoting trade partnerships between prospective importers and exporters as part of their GH2 strategy.  International cooperation will be crucial to laying the groundwork for GH2 trade and local benefits through knowledge exchange, technology transfer, collaboration in hydrogen technology R&D, as well as international standard-setting. The figure below displays the current global hydrogen partnership network.Visualization of the global hydrogen partnership networkSource: Analysis based on data from the World Energy Council Germany (2023), World Energy Council (2022, p.7), and own research. Green shades refer to (slightly and strongly) export-oriented countries, blue shades to (slightly/strongly) import-oriented countries, while light red colour indicates a neutral or rather self-sufficient position of countries.Some countries prioritize exports, foreign direct investment (FDI), and the implementation of large-scale hydrogen projects in their national hydrogen strategies. Due to the absence of developed hydrogen transport infrastructure, however, countries more often prioritize the development of their domestic markets before entering global hydrogen trade. They adopt a gradual and sequenced approach to GH2 production and use, starting with small- to medium-scale projects on both the supply and demand sides. Certain nations identify “no-regret” applications that are easily adaptable to GH2, such as ammonia production or methanol for feedstock and synthetic fuels.This vision for GH2 as a catalyst for low-carbon industrial development is increasingly reflected in national hydrogen strategies. This underscores the potential for new sustainable industries employing GH2 locally, such as green  steel or fertilizer production. Green intermediates f(e.g. direct reduced iron) , or green goods (e.g. green steel or fertilizer), can provide cheap and sustainable alternatives for international buyers, while accumulating more added value domestically than could be achieved through direct GH2 export. Competitive clean energy prices may even exert a “renewables pull effect”, enticing hard-to-abate industries to set up shop in GH2 producer countries.7 Additionally, some nations aim for a competitive edge and leadership role in upstream hydrogen technologies, including electrolysers and fuel cells.The dual approachThe dual approach to hydrogen utilization seeks to maximize the domestic benefits of producer countries by engaging in both direct export and local use. As with any other natural resource, a strategy based on export is easier than one that seeks to add value at the national level as it is a quick win with immediate impact on GDP, without the complexity of altering the industry structure. In the short term, then, a purely export-oriented strategy may be more profitable, but it forgoes the longer-term benefits of building domestic skills and shifting away from an old, inflexible industry structure. A dual approach, in which only surplus GH2 is exported, is therefore more beneficial overall.Domestic value creation, industrial linkages, technological learning and permanent employment are more likely to be achieved when GH2 is produced for local uses (i.e. for decarbonizing the domestic economy and promoting green industrialization). The more value addition is realized domestically (e.g. by using GH2 to produce green steel or fertilizer, see next figure), the more long-lasting the economic benefits that producer countries can reap. The ease with which this can be achieved, however, depends on the existing industrial structure. If downstream GH2-ready industries are not yet in place, changing the industrial structure to include them will be a complex endeavour, taking years to accomplish. Nonetheless, the benefits are significant: an increased share of manufacturing contribution to GDP, skills development and long-term employment, as well as a more adaptable and flexible industry structure, bolstered by green diversification and the renewables pull effect.The Green Hydrogen Value ChainConclusionInstead of relying exclusively on GH2 exports, which entail high technological and systemic uncertainties, countries should consider pursuing a dual GH2 trade strategy. This involves the establishment of a domestic hydrogen market to decarbonize existing industries, and exporting any surplus to overseas markets. While more complex than simply exporting GH2 – especially for those within pipeline range of high-demand markets – a local value chain offers extensive long-term benefits. Governments can start by attracting investment in energy-intensive steel or base chemicals, gradually moving into downstream industries that use green steel or chemical feedstock, and upstream into industries that produce renewable power generators and electrolysers. This long-term vision calls for a careful alignment of the country’s energy, infrastructure, trade and industrial strategies. Source: The article was published on the IAP UNIDO website. 
20 December 2023 News
UNIDO Hosts Successful ISO TC 197 Hydrogen Technologies Plenary Week 13-17 November 2023
UNIDO Hosts Successful ISO TC 197 Hydrogen Technologies Plenary Week 13-17 November 2023Vienna, November 17, 2023 - The United Nations Industrial Development Organization (UNIDO) successfully hosted the Technical Committees of the ISO TC 197 Hydrogen Technologies Plenary Week from November 13 to 17, 2023, at the Vienna International Centre (VIC). The event, held within the framework of the Global Programme for Hydrogen in Industry, brought together more than 150 global experts to deliberate on critical issues surrounding hydrogen standards.As part of the exclusive programme for the ISO TC 197 members, the UNIDO-ISO Strategic Planning meeting took place titled “Innovation in hydrogen: How to accelerate innovation in H2 in developing countries through standards". This meeting was attended by over 150 in-person attendees and 150 online participants representing 62 countries, including 34 developing nations. The engagement underscored the importance of collaboration in addressing the challenges faced by developing countries in their strategies to accelerate hydrogen production.Key Outcomes:Information Sharing on International Standards: Participants stressed the need to share information on the international standards being developed at ISO to enhance transparency and cooperation.Knowledge Transfer and Capacity Building: Acknowledging the obligation of more advanced countries, discussions highlighted the importance of transferring technical knowledge, providing support to build capacity, and educating on the challenges related to hydrogen technologies.New Partnership Models: The plenary emphasized the need to creatively establish new partnership models, fostering collaboration between private entities, government agencies, and international organizations to support developing countries in their hydrogen initiatives.Technical Tour: Hydrogen Filling Station 17 NovemberThe plenary week concluded with a Technical Tour on November 17 hosted by Wien Energie, providing participants with an insight into a Hydrogen Filling Station. Since 2021, this station, established for buses and trucks in Leopoldau, has been a pivotal part of Vienna's commitment to sustainable transport.UNIDO is excited to continue shaping the future of sustainable energy through collaboration and shared expertise. The success of the plenary week reflects the commitment of global experts to advancing hydrogen technologies and standards
17 December 2023 News
UNIDO and Slovene Enterprise Fund partner to advance hydrogen use in industry
On 17 November 2023, UNIDO signed a Joint Declaration with the Slovene Enterprise Fund. The objective of this Partnership is to promote the uptake of hydrogen for industrial applications in developing countries and emerging economies.The collaboration within the framework of The Global Programme for Hydrogen in Industry will be developed in the following areas:Awareness raising, knowledge exchange and capacity building (policy, standards, skills, technologies).Promotion of hydrogen technologies and their applications in industry.Organization of joint events and global forum activities.Pilot Projects for hydrogen applications in industry.The joint declaration was signed by Petra Schwager (on behalf of UNIDO), and Maja Tomanič-Vidovič (on behalf of the Slovene Enterprise Fund).