Green hydrogen for Sustainable Industrial Development A Policy Toolkit for Developing Countries.

Green hydrogen for Sustainable Industrial Development A Policy Toolkit for Developing Countries

Green hydrogen (GH2) is gaining significant attention within the global energy landscape. As a clean and renewable energy carrier, GH2 holds the potential to transform a number of sectors, spanning heavy industries to shipping and aviation. Its benefits are far-reaching, ranging from the reduction of greenhouse gas emissions to reinforcing energy security and creating opportunities for green industrializa]tion.

However, to fully unlock GH2’s potential, an equitable distribution of its benefits to all is indispen]sable. Against this background, the report “GH2 for sustainable industrial development: A Policy Toolkit for Developing Countries” reframes the prevailing narrative by shifting its focus away from the role of developing countries as producers and exporters in the future hydrogen market to highlighting the significance of the hydrogen value chain for developing countries themselves. GH2: Unveiling opportunities and addressing challenges GH2 possesses the potential to spark a transformation that drives industrial development and fosters innovation, with potentially beneficial impacts on all three dimensions of sustainability: economic (e.g. green industrialization, energy independence, in[1]creased participation in global trade and markets), environmental (e.g. accelerating decarbonization, in particular of hard-to-abate industries) and social (e.g. job creation, reliable energy access).

The toolkit identifies seven primary economic activity clusters within the GH2 value chain: in addition to the primary activities of (1) renewable energy generation and electrolysis, (2) conversion into Power-to-X (PtX), and (3) GH2 export, (4) local upstream manufacturing of electrolysers and renewable energy equipment can offer substantial impetus to the growth of the domes[1]tic GH2 industry. Similarly, (5) the decarbonization of domestic industries, (6) of transport, and (7) attracting foreign direct investment in energy-intensive industries represent opportunities to generate sustain[1]able employment downstream, add long-term value and enhance international competitiveness.