Enabling Global Renewable Hydrogen Trade for Decarbonization
Key Ideas
- IRENA-WTO report underscores the critical role of renewable hydrogen and derivatives in decarbonizing challenging sectors like manufacturing and transportation.
- Global market for hydrogen-based commodities could lower costs by utilizing abundant renewable resources in exporting countries.
- Recommendations include developing sustainable value chains, enhancing infrastructure, establishing policy frameworks, and promoting international collaboration for successful market growth.
- Policymakers are urged to leverage resources to support the global trade of renewable hydrogen, fostering green industrial growth and job creation.
The joint report by IRENA and WTO emphasizes the significance of promoting renewable hydrogen and its derivatives to facilitate the decarbonization of hard-to-abate sectors. It identifies ammonia, methanol, and e-kerosene as crucial in accelerating the energy transition, particularly in sectors like chemical manufacturing, steelmaking, and heavy-duty transport. By 2050, these hydrogen-based applications are projected to contribute significantly to global energy consumption. The report predicts that countries rich in renewable energy sources will become exporters, while others may turn to imports for decarbonized feedstocks and fuels. To enable international trade, the report calls for expanded sustainable value chains, improved infrastructure like pipelines, and robust policy frameworks including standardization and certification mechanisms. It stresses the necessity of carbon pricing to support market growth and ensure sustainable production. The importance of engaging local communities and building social acceptance is highlighted for successful project implementation. The report also underscores the role of international collaboration in areas such as standardization and certification for market development. Policymakers are encouraged to utilize available resources and tools to advance the global trade of renewable hydrogen, fostering green industrial growth, job creation, and a more efficient energy transition.
Topics
Certification
Renewable Energy
Infrastructure
Sustainability
Decarbonization
Collaboration
Global Market
Policy Frameworks
International Trade
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