Shaping Sustainable Global Energy Trade with Low-Carbon Hydrogen
Key Ideas
  • Low-carbon hydrogen is crucial for achieving net-zero emissions by 2050.
  • Global distribution imbalances in production potential and demand create a new market with complex value chains.
  • IRENA's report focuses on economic, governance, and environmental aspects, highlighting opportunities and risks for developing countries.
  • The report emphasizes the role of developing countries as suppliers and future demand hubs in shaping sustainable international hydrogen value chains.
The article discusses the importance of low-carbon hydrogen in the transition towards achieving net-zero emissions by 2050. While acknowledging its significance, it points out that the global potential for producing low-cost, low-carbon hydrogen is not uniform across regions. This disparity may lead to the emergence of a new global market that trades not just low-carbon hydrogen but also its derivatives. The article suggests that this new market dynamic could reshape global energy trade, inviting new players including developing countries to participate. The focus is shifting towards a more comprehensive sustainability approach, considering economic, governance, and environmental dimensions of international hydrogen value chains. IRENA's report delves into these aspects, exploring the economic opportunities and potential risks for developing countries. It emphasizes the need for a sustainable approach in value chains that involve developing nations both as hydrogen suppliers and future demand centers, like the G7 countries. This shift towards sustainable international hydrogen value chains presents a positive outlook for the global energy landscape, opening doors for new collaborations and opportunities while addressing the challenges of emission reduction and clean energy transition.
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