Global Trade in Renewable Hydrogen Crucial for Energy Transition, Says IRENA-WTO Report
A joint IRENA-WTO report emphasises the need for strategies to promote renewable hydrogen and its derivatives, vital for decarbonising hard-to-abate sectors. It highlights the importance of infrastructure, policies, and international collaboration to enable global trade.
November 18, 2024. By EI News Network
As per the report, these hydrogen-based commodities are expected to be vital for decarbonising hard-to-abate sectors such as chemical manufacturing, fertiliser production, steelmaking, and heavy-duty transport, including maritime and aviation. According to IRENA, these applications may account for around 14 percent of global energy consumption by 2050.
The report outlines how varying climate conditions and economic circumstances will impact the cost of producing renewable hydrogen and its derivatives across different regions. Countries with abundant renewable energy resources are expected to emerge as exporters, while industrialised nations with limited resources may rely on imports to access decarbonised feedstocks and fuels. A global market for these commodities could reduce costs by enabling production in areas where renewable resources are most abundant.
To enable international trade, the report calls for scaled-up sustainable value chains, with increased infrastructure such as pipelines and shipping facilities. It also stresses the importance of developing comprehensive policy frameworks, including standardisation, certification mechanisms, and carbon pricing, to facilitate market growth and ensure sustainable production. Moreover, engaging local communities and building social acceptance are key factors in successful project implementation.
The report highlights that international collaboration and cooperation will be essential in developing these markets, particularly in the areas of standardization and certification. Policymakers are encouraged to leverage available resources and tools to advance the global trade of renewable hydrogen and its derivatives, supporting green industrial growth, job creation, and a more efficient energy transition.
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