Exploring the Global Trade Potential of Green Hydrogen
Key Ideas
- Trade can serve as a bridge connecting regions rich in renewable resources with areas of high demand, offering developing economies an opportunity to leverage their green advantage.
- Global trade in hydrogen has the potential for significant cost savings and job creation, especially in developing economies with renewable energy potential.
- There is a need for enhanced international financing mechanisms and capacity-building initiatives to help developing economies meet international certification standards and overcome barriers such as access to infrastructure and capital.
The article discusses the global trade potential of green hydrogen as highlighted during a roundtable event led by WTO Deputy Director-General Jean-Marie Paugam. The event emphasized the role of trade in linking regions with renewable resources to areas of high demand, promoting sustainability and leveraging green advantages for developing economies. Key points included the significant cost savings and job creation potential in global hydrogen trade, with forecasts indicating substantial investment cost reductions by 2050. Developing economies were encouraged to explore opportunities in becoming exporters of green hydrogen or using it to decarbonize industries, although challenges such as infrastructure and capital access were identified.
The importance of international cooperation and standardization in certification schemes was stressed, with calls for enhanced financing mechanisms to support developing economies in meeting standards. The event featured discussions on technical requirements for hydrogen markets, the need for interoperability and mutual recognition of certification systems, and the role of the WTO in aligning standards and ensuring mutual recognition of schemes. The upcoming report for COP29 will explore the role of trade in advancing derivatives of renewable hydrogen, emphasizing the need for coordination, interoperability, and communication to drive sustainability initiatives in the global hydrogen market.
Topics
Fuel Cells
Renewable Energy
Infrastructure
Sustainability
Carbon Emissions
Job Creation
International Cooperation
Global Trade
Certification Standards
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