SDG 9: Industry, Innovation and Infrastructure | SDG 13: Climate Action | SDG 7: Affordable and Clean Energy
Institutions: Ministry of New and Renewable Energy | Ministry of Heavy Industries
The UNIDO report, Building a Sustainable and Inclusive Hydrogen Economy, emphasizes that clean hydrogen (Green and Blue hydrogen) is a global game-changer that offers unique opportunities for net-zero industrial development in developing countries, particularly those with abundant renewable power potential. Hydrogen can pave the way for job creation, skills upgrading, investment mobilization, and energy security. It is critical for decarbonizing “hard-to-abate” industrial sectors—such as refining, chemicals, iron, steel, and cement—which currently account for a significant share of global CO2 emissions.
The report warns that significant obstacles currently hinder developing countries from fully capitalizing on this potential. The most pressing challenges include:
Policy and Standards: The absence of conducive policies, binding regulations, and appropriate standards creates uncertainty and hinders investor confidence. Developing countries need to be part of the discussion on international standard setting.
Finance and Investment: A massive investment of USD 4.6 trillion is needed globally by 2050. Developing countries face obstacles in mobilizing public-private financing at scale and require enhanced access to international assistance.
Skills and Innovation: There is a lack of specialized skills and know-how across the hydrogen value chain (production, storage, distribution). Limited access to affordable, advanced technologies and restricted financial resources for R&D compound this issue.
Infrastructure: Insufficient infrastructure for hydrogen export, transportation, and storage remains a major hurdle.
The UNIDO’s Global Programme for Hydrogen in Industry (GPHI) aims to support developing countries in overcoming these challenges by focusing on developing enabling policies, reliable standards, skills upgrading, and mobilizing funding, advocating for a just hydrogen transition that generates socio-economic benefits.
The report underscores that hydrogen is a critical pathway for India’s commitment to net-zero and the industrial decarbonization of heavy-emitting sectors like steel and cement. It highlights that the success of India’s national hydrogen initiatives (such as those aimed at building hydrogen hubs) depends critically on quickly implementing robust domestic policy and regulatory frameworks, developing quality infrastructure for testing and storage, and rapidly closing the skills gap.
What are ‘Green’ and ‘Blue’ hydrogen?→ Green hydrogen is produced using renewable energy to power the electrolysis of water, resulting in zero emissions. Blue hydrogen is produced from fossil fuels (natural gas/coal) but integrates Carbon Capture and Storage (CCS) technology to capture the CO2, making both desirable low-carbon options.
Follow the full release here: Building a Sustainable and Inclusive Hydrogen Economy,