Hydrogen is an essential tool for achieving climate objectives and economic goals established by governments and industry.

Experts widely recognize hydrogen as an essential part of a broad portfolio of clean energy solutions required to limit temperature increases to below the 2050 1.5°C or 2°C scenarios identified as needed to stabilize rising global temperatures. To that end, the International Energy Agency (IEA) identifies hydrogen as a key pillar of decarbonization in its Net-Zero by 2050 analysis.³ Hydrogen can address some of the largest sources of emissions, decarbonize hard-to-abate sectors, and support increased renewable energy production by acting as a long-term energy storage medium. While renewable power and electrification are helpful for near-term decarbonization efforts, hydrogen must play a critical role alongside systemic efficiency and carbon capture applications to achieve deep decarbonization and net-zero targets.⁴ Analysis by the International Renewable Energy Agency (IRENA) shows that hydrogen will make up 10% of the world energy mix by 2050 and is one of the vital components of the energy transition strategy necessary to achieve the Paris Agreement goals.⁵

Even countries that have not traditionally traded energy are establishing bilateral agreements for hydrogen, and IRENA estimates that by 2050, over 30% of hydrogen will be traded across borders.⁶ The increase in trade and investment in hydrogen markets is disrupting a fossil fuel-dominated industry currently valued at $178 billion.

World Economic Forum: Pathways to Decarbonization When Developing Industrial Clusters

Global Momentum is Quickly Growing

Net-zero commitments are at an all-time high. The Climate Ambition Alliance, which is backed by the United Nations (UN), estimates that 1,000+ higher education institutions, 1,000+ cities, 65+ regions, 5,000+ businesses, and 440+ of the most prominent investors have joined the Race to Zero global campaign focused on reducing global emissions by 50% by 2030.”⁷ This campaign is complemented by 120 countries committed to achieving net-zero carbon emissions by 2050. Collectively, these players represent nearly 25% of global CO₂ emissions and over 50% of GDP.

Countries increasingly employ multiple technologies to achieve these aggressive goals across different use cases and applications, including hydrogen, which complements electrification, carbon capture, and energy efficiency technologies. With over 500 hydrogen projects announced globally, increased momentum is helping bridge the gap between today and a net-zero future. Globally, over 25 countries have introduced national hydrogen plans as parts of their more extensive decarbonization strategies, and many more are working to develop a national vision. Almost half of the progress associated with hydrogen is in Europe, where there has been regulatory support and substantial research and development investment. The EU expects to complete the first phase of its Hydrogen Strategy in 2024, installing 6 gigawatts of electrolysis and producing 1 million MT of green hydrogen. The second phase of the strategy will include the deployment of at least 40 gigawatts, producing up to 10 million MTs of hydrogen by 2030.⁸ Globally, companies are planning hydrogen projects amounting to $460 billion in investments across the hydrogen value chain through 2030, with most of the funds going toward renewable and low-carbon hydrogen production.⁹

The international economy is embracing hydrogen and is attracting investment, driving innovation, and stimulating jobs and commercial activity. Recognizing the value of the opportunity - and the cost of missing the opportunity - federal and state governments in the United States are putting money and resources to work, joining the growing domestic commercial and industrial activities.