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The Role of Green Hydrogen in the Global Energy Transition
Green hydrogen, derived from renewable energy sources, is emerging as a key player in the quest to decarbonize challenging sectors such as heavy industry, shipping, aviation, and chemicals. Its significance in achieving the global target of limiting temperature rise to 1.5°C cannot be overstated. In particular, the industrial sector will rely heavily on green hydrogen as a vital feedstock for producing green ammonia, methanol, and steel. These commodities are essential not only for economic stability but also for significantly reducing emissions associated with their production.
As green hydrogen and its derivatives gain traction, there is a growing anticipation for the creation of a unified global hydrogen market. In response, numerous governments are devising strategies, roadmaps, and regulatory frameworks to facilitate the proliferation of these greener technologies. Among the most discussed tools in this developmental landscape are standardization and certification, which are recognized as critical elements for establishing robust market structures.
International standards play a crucial role in harmonizing expectations between producers and consumers situated in different countries. By adhering to standardized practices, investments become less risky, as project plans gain enhanced credibility. Certification schemes further bolster consumer confidence by ensuring that the green commodities they purchase genuinely meet specific sustainability criteria. This verification is essential for proving that these ‘green’ products truly contribute to emission reductions in hard-to-abate sectors, as sustainable value chains underpin their effectiveness.
As various governments and regulatory bodies set their sights on market development, differing priorities and approaches to certification schemes are emerging. This divergence is reflective of the unique environmental, economic, and social contexts that each region faces.
However, the existence of varying emission calculation methods and system boundaries across international certification schemes introduces complexities. These inconsistencies can lead to higher administrative costs for producers striving to navigate diverse regulatory landscapes, hampering their ability to participate effectively in global markets.
To address these challenges, efforts to synchronize the development of certification schemes across borders are underway. Current international initiatives are primarily focused on achieving interoperability, where certificates issued in one jurisdiction can be recognized in another, provided that the underlying scheme characteristics align closely. Through the collaboration of international organizations and governments, advancements toward the interoperability of certification schemes are being made, although much of this work remains concentrated on hydrogen itself.
The International Renewable Energy Agency (IRENA), in its latest report, advocates for extending the pursuit of interoperability to derivative sectors associated with hydrogen. IRENA emphasizes that standards for hydrogen can and should complement those applied to related commodities like methanol, ammonia, iron, and steel, given the critical role these international markets will play in decarbonizing their respective value chains.
To support these initiatives, the report outlines a series of recommendations for regulators and certification scheme administrators, categorized into three primary pillars:
1. Regulatory Framework Design
2. Logistics of Certification Scheme Development and Management
3. Value of and Priorities for International Collaboration
Reducing complexity is deemed imperative for fostering the expansion of projects dedicated to producing these crucial green commodities. Moreover, achieving mutual recognition or interoperability of frameworks and schemes should be prioritized as countries engage in further international collaboration surrounding green hydrogen. By working together, nations can accelerate the transition to a sustainable energy future while effectively addressing the global climate crisis.
Source
www.irena.org