A new study from the Center for Global Sustainability (CGS), published in Energy and Climate Change, explores emerging trends in national hydrogen strategies and offers critical recommendations for researchers and policymakers to ensure equity is at the center of hydrogen development. The study reveals that the future of the hydrogen economy will depend on overcoming significant technical and financial challenges, fostering international cooperation, and ensuring equitable access, particularly for low- and middle-income countries (LMICs).
As nations worldwide accelerate their efforts to utilize hydrogen for the clean energy transition, more than 40 countries have developed hydrogen roadmaps. These strategies outline plans for hydrogen production, trade, and integration into industries such as steel, chemicals, and transportation. As demand for clean hydrogen rises to reduce greenhouse gas emissions across these sectors, countries must address obstacles in scaling up production while ensuring equitable access to the potential benefits of a hydrogen economy.
“Hydrogen offers a potential path to decarbonize hard-to-abate sectors, but key concerns remain about its equity and environmental impacts,” said Kathleen Kennedy, CGS Assistant Research Professor and lead author of the study. “While some LMICs have abundant renewable resources suitable for producing green hydrogen, high costs, and hydrogen transportation challenges may limit their ability to fully participate in the global hydrogen economy.”
The analysis found that countries embrace a wide range of low-carbon hydrogen production methods. Beyond green hydrogen (produced from renewable energy), roadmaps now include blue hydrogen (produced from fossil fuels with carbon capture) and other low-carbon methods to meet diverse energy needs. The analysis also identified three broad strategies in national hydrogen roadmaps. While many hydrogen-producing countries initially focus on domestic hydrogen consumption in existing markets like heavy-duty transportation and fertilizers, with plans to export hydrogen in the long term, some prioritize exporting their hydrogen production in the short term while building their domestic hydrogen economy over time. On the other hand, countries that plan to import hydrogen are increasingly setting ambitious targets for domestic hydrogen consumption as part of their broader low-carbon strategies.
This dynamic reflects the growing recognition of hydrogen’s potential as a globally traded commodity. Despite the rapid advancements in hydrogen development, the analysis finds significant challenges remain. High costs, storage and transportation limitations, and a lack of standardized international frameworks are key obstacles that must be addressed for a hydrogen economy to emerge. Furthermore, with this emerging hydrogen economy, it is critical to center equity within hydrogen development.
The potential for hydrogen to be a globally traded commodity or a locally focused resource depends on each country’s capacity to produce, trade, and use hydrogen. Export-focused nations may build large-scale international trade networks, while countries focusing on domestic needs may target smaller-scale hydrogen applications. However, the study emphasizes that for hydrogen’s benefits to be truly global, high-income countries must assist LMICs in scaling their hydrogen industries. This support should come through direct investments, technology transfer, and capacity-building initiatives, ensuring LMICs have equitable access to hydrogen technologies and the benefits they provide. Stronger international cooperation can help address equity gaps and ensure that the benefits of hydrogen development are distributed fairly and sustainably.
“The future of the hydrogen economy is uncertain, and countries must assess how best to scale production and distribution to meet local needs while tapping into global market opportunities,” said Maria Borrero, CGS Research Associate and report author. “To foster a more equitable hydrogen economy, especially for LMICs, countries should collaborate internationally to integrate innovation and development approaches into technology transfer and develop hydrogen applications aligned with their existing capabilities and expertise."
The study calls for the further development of integrated assessment models (IAMs) to better reflect the evolving hydrogen economy, including production, delivery, trade, and consumption. IAMs that incorporate equity considerations will provide a more comprehensive understanding of hydrogen's role in climate policy and its economic impacts. Additionally, policymakers in high-income countries must consider the equity implications of their hydrogen strategies. This includes focusing on technology transfer, innovation, and supporting capacity-building in LMICs to enable long-term growth of domestic hydrogen industries, even if export opportunities are not immediately feasible.
Download the study to learn more.
