Policies

Hydrogen is one of the most abundant elements on Earth, and it represents to us a unique opportunity for a clean energy transition. The past years show clearly just how close to a climate catastrophe we are living. Climate change is an existential threat to a sustainable future. Facing up to the climate challenge is an opportunity to promote prosperity and a brighter future for all.Green hydrogen (GH2) and its derivatives will play a vital role in that transition. Hydrogen is classified as “green” – a clean and renewable energy carrier – when it is produced through electrolysis powered by renewable energy.GH2 is a game changer for the hard-to-abate sectors such as steel, cement and the chemical industry, which cannot readily be electrified. It is currently the only way we have to decarbonize these sectors.GH2 is versatile as it can be used as a combustion fuel or as feedstock for industrial processes. It can also be converted back into electricity in a fuel cell. Compared to grid renewable electricity, it can be more easily stored and transported over long distances for use further from the initial renewable energy source.Because GH2 electrolysis does not need to be near geographically concentrated or hard-to-extract resources, it can be key in establishing energy security.Derivatives of GH2, such as green ammonia and green methanol, are long-term energy carriers. They store surplus renewable electricity produced during periods of low demand. Just like GH2, its derivatives can be used as industrial energy source, be used as green feedstock, or used as green transportation fuel.Green Hydrogen is a game changer for the hard-to-abate sectors such as steel, cement and the chemical industry, which cannot readily be electrified.Green hydrogen needs green energy: the transition needs a huge increase in renewable energy generation.Green ammonia is synthetically manufactured by combining nitrogen with hydrogen using renewable energy sources. Green ammonia can be applied in sustainable fertilizer production, thereby contributing to decarbonizing the food value chain, while supporting agricultural productivity and food security.We still have our work cut out for us in making the energy transition a reality. No mature GH2 market exists yet. It is, however, encouraging that the number of countries with national hydrogen roadmaps has tripled over the last year. This shows that many countries are readying themselves to start using GH2 and planning how best to benefit from the economic opportunities it will provide.At UNIDO, we are putting together development programmes to help developing countries achieve this goal and realize the opportunities for sustainable industrialization that follow.

The emerging green hydrogen (GH2) economy promises to generate prosperity and accelerate decarbonization, but at what cost for producing countries’ populations and the environment? The GH2 transition carries several implications for energy, water and food supply security, and its potential impacts on land use, ecosystems and biodiversity cannot be ignored, either.The challenge of energy justice in the GH2 transition is thus to minimize the negative externalities while ensuring that its resultant benefits are shared by all. Going forward, a sound and participative approach to the development of GH2 strategies can act as a catalyst for energy justice. GH2 has been identified as a potential energy vector to decarbonize the transport and manufacturing sectors and to achieve the global greenhouse gas reduction targets set out in the UNFCCC Paris Agreement of 2015.Aside from its economic and climate benefits, the proliferation of GH2 also entails numerous social and environmental challenges.

Green hydrogen (GH2) as a means to decarbonize industry is now well-ingrained in the policy discourse. Around 45 countries are devising or have published hydrogen strategies, and several agreements have been concluded between countries to set up tomorrow’s trade routes for hydrogen. Despite these efforts, we are still far from a world where GH2 plays a key role as a source of energy, given that demand for GH2 is limited and the infrastructure for GH2 is confined to industrial areas. Moreover, global electrolyser capacity amounts to just a few hundred megawatts, which lies significantly below the target of 115 GW by 2030 to meet the GH2 demands for all the published and announced strategies, and again far below the forecasted target of 5 TW by 2050, according to IRENA’s World Energy Transitions Outlook.Spanish version of the article: La política industrial y de innovación puede acelerar la transición al hidrógeno verde | Industrial Analytics Platform