IRENA – Shaping Sustainable Hydrogen Value Chains, 2024

IRENA's report focuses on the importance of low-carbon hydrogen in achieving net-zero emissions by 2050 and highlights the global disparities in techno-economic potential for producing low-cost, low-carbon hydrogen. The creation of a new global market for trading low-carbon hydrogen and its derivatives is expected to reshape global energy trade and create opportunities for new players, including developing countries. The report analyses the economic, governance, and environmental aspects of sustainable hydrogen value chains, emphasizing the need for comprehensive sustainability approaches. It discusses the impact of regulations and incentive schemes, such as the Inflation Reduction Act in the United States and the auction system by the European Hydrogen Bank, on global hydrogen production. Furthermore, the report highlights the importance of access to cheap renewable energy, water, and land resources for cost-effective production of renewable hydrogen. It also discusses the governance and strategy-setting perspectives, with a focus on the role of G7 members and developing countries in hydrogen policy-making and strategy development. In terms of environmental impact, renewable hydrogen is shown to emit less greenhouse gases than blue hydrogen over its lifecycle, emphasizing the importance of adopting renewable energy sources for hydrogen production. Additionally, the report discusses the potential challenges and opportunities for developing countries in the global hydrogen market.