The hydrogen economy is gaining momentum as a crucial element in global decarbonization efforts. With over $680 billion invested in more than 1,500 projects worldwide, hydrogen is positioned as a clean, versatile energy source for diverse industries such as steelmaking, transportation, and electricity generation. However, despite its carbon-free nature, producing hydrogen can be energy-intensive and potentially polluting. This complexity underscores the need for investors to critically evaluate hydrogen projects, considering their climate impact and overall environmental friendliness. The Environmental Defense Fund emphasizes four key considerations for decision-makers in hydrogen projects. These include maximizing benefits for climate, ecosystems, and society while minimizing risks, assessing hydrogen against alternative clean energy solutions, conducting full system-level evaluations to reduce emissions, and designing systems to minimize leaks and emissions throughout the value chain. The current stage of hydrogen project development presents a critical moment for ensuring that investments align with actual benefits and risks rather than hype. Private investors, including venture capital and private equity firms, are urged to integrate climate considerations into their due diligence processes, evaluating projects based on their climate impact and technological suitability. Institutional investors like pension funds and sovereign wealth funds are also encouraged to enhance their internal knowledge to guide substantial capital flows toward sustainable hydrogen initiatives. Green hydrogen, produced using renewable energy, is gaining traction as a fossil-free solution for hard-to-electrify industries. The need for thorough due diligence by investors is emphasized as a crucial step in supporting the hydrogen market, achieving decarbonization goals, and avoiding negative climate consequences. As the hydrogen market expands, informed decision-making, consideration of alternatives, and proactive climate risk mitigation are essential for realizing the full potential of hydrogen as a key player in the global energy transition.