Catalyzing Clean Hydrogen Investment Through International Coordination and Risk Mitigation
Key Ideas
  • The COP29 Hydrogen Declaration aims to boost renewable clean hydrogen production for decarbonization, focusing on hard-to-abate sectors.
  • National and international DFIs endorse a Joint DFI Communique to support renewable hydrogen projects in developing countries by 2030.
  • Risk mitigation tools like offtake guarantees and technology guarantees are crucial for attracting private capital to clean hydrogen projects.
  • The report highlights the importance of supporting policies and enabling conditions to create an attractive investment environment for clean hydrogen.
The push for clean energy technologies to align with the Paris Agreement has intensified, with a focus on clean hydrogen to decarbonize challenging sectors. Despite growing interest, large-scale clean hydrogen projects face hurdles reaching the investment stage. The COP29 Hydrogen Declaration and the Joint DFI Communique aim to scale up renewable clean hydrogen projects, particularly in developing countries. Risk mitigation tools like offtake guarantees and political risk insurance are seen as essential for mobilizing private capital. The report emphasizes the need for tailored risk mitigation packages and enabling policies to attract investments in clean hydrogen. Collaboration between OECD and World Bank highlights the significance of international coordination and de-risking instruments in catalyzing clean hydrogen investments. By enhancing coordination and creating investment platforms, the report provides a roadmap for governments and financiers to design effective economic and financing instruments for clean hydrogen projects, aiding the transition to a low-carbon economy.
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