Green hydrogen is a viable solution to reducing greenhouse gas emissions and transitioning away from fossil fuels for “hard-to-abate” sectors. The supply chain for hydrogen is not yet fully developed. Several barriers, such as the high cost of green hydrogen compared to non-renewable alternatives and the lack of dedicated infrastructure, are still impeding hydrogen's full contribution to the energy transition.

This report from the International Renewable Energy Agency (IRENA) aims to provide a basis for understanding these challenges and the solutions available. It highlights the range of policy options available, complemented by country examples.

Policies presented in this report include measures to support electrolyser capacity deployment; ensure electricity is renewable and cost-competitive; increase green hydrogen demand; and develop a hydrogen transport infrastructure. The report separates policy recommendations into various stages to allow the formulation of appropriate policy pathways most suitable to a country's level of deployment of green hydrogen.

This is the second in a series of reports designed to explore policies to support green hydrogen across the entire value chain. The first report Green hydrogen: A guide to policy making, published in November 2020, identified the pillars needed for creating a policy framework for green hydrogen.

Upcoming reports will focus on industrial applications and long-haul transport.

Report by IRENA