IRENA | Enabling Global Trade in Renewable Hydrogen and Derivative Commodities
Key points
While renewable electricity and biofuels will dominate the energy landscape by 2050, renewable hydrogen and its derivatives will be essential for decarbonizing hard-to-abate sectors like heavy industry and long-haul transport.
International trade offers significant cost savings and job creation potential by connecting renewable hydrogen supply with demand centers globally.
Scaling up the market requires substantial investment in infrastructure for production, storage, transport, and distribution. Diversification beyond existing pipeline networks is crucial.
Aligning standards and certification schemes is essential for building credible and transparent markets, reducing transaction costs and facilitating trade. Convergence on carbon measurement and verification approaches is also needed.
Governments play a critical role in calibrating support mechanisms and green procurement policies to drive demand and de-risk offtake for renewable hydrogen and its derivatives.
Reviewing and potentially rebalancing tariffs for renewable hydrogen and derivative commodities can reduce costs and incentivize sustainable production.
Coordinating carbon pricing mechanisms can enhance the competitiveness of renewable hydrogen and its derivatives, especially in sectors like maritime transport.
International cooperation through platforms like the International Hydrogen Trade Forum (IHTF) is crucial for knowledge sharing, best practice exchange, and harmonizing regulations.
Engaging communities, building social acceptance, and incorporating job creation strategies in national action plans are essential.
