Green Hydrogen | Sustainable Development
The analysis is founded on a dual rationale.
First, it recognises that green hydrogen presents both opportunities and risks for the sustainable development of Global
South countries investing in its production. On the one hand, green hydrogen can lead to desirable outcomes like industrial development, job creation, and domestic decarbonisation. On the other hand, it could create or exacerbate extractive trade
relations, debt burdens, and land and water stress.
Second, it asserts that MDBs have the mandate to shape their activities in Global South countries in a way that delivers positive sustainable development outcomes for producer countries. As development banks, it is their role to champion
sustainable development for producer countries in the emerging market and policy landscape for green hydrogen. It is also their role to set the right example for lending practices at an early stage, moving beyond the “do no harm” principle
and prioritising value addition
