COP 29 hydrogen: Global leaders urge Gov’s to back 2030 targets for clean hydrogen deployment

In a decisive open letter, the global hydrogen sector is urging governments worldwide to commit to scaling up clean hydrogen – and its derivatives – by 2030.

As the COP 29 climate talks kick off today in Baku, the industry warns that current progress, while substantial, needs to accelerate if the world is to hit Paris climate targets.

Seven-fold surge in hydrogen investment – but still not enough

In the past 4 years, global investment in clean hydrogen projects has skyrocketed. Final investment decisions (FIDs) have risen from $10 billion across 102 projects in 2020 to $75 billion across 434 projects today.

Yet, while this signals a critical shift from early-stage planning to real-world implementation, the industry says the current rate of deployment isn’t enough to align with global climate commitments.

According to the International Energy Agency (IEA) and the Hydrogen Council, the world will need to be producing around 75 million tonnes of clean hydrogen annually by 2030 to stay on track for net-zero targets.

Current government policies, however, may only reach 7 million tonnes per year by the end of this decade.

The industry is calling this ten-fold increase in hydrogen use by 2030 its “North Star”, requiring strong mandates and demand-side incentives from governments across sectors, including heavy industry, transport, and energy.

Hydrogen’s unprecedented potential

The letter outlines not only the environmental benefits but also the economic value of hydrogen at scale:

• Carbon reduction: By mid-century, clean hydrogen could eliminate 60 to 80 gigatonnes of CO₂ emissions.
• Investment savings: Developing international hydrogen supply chains could save $3.7 trillion in capital expenditure by 2050.
• Job creation: The hydrogen sector could create 25 million jobs globally, with around half potentially located in emerging markets and developing countries.

8 key steps to achieve the 2030 goal

To turn the “North Star” target into reality, the industry has laid out a set of recommendations it believes governments must adopt within the next two years:

Demand-side incentives:

Incentives and set targets for clean hydrogen use in critical end-use sectors are needed to build investor confidence. Clear policy roadmaps are key to enabling private capital to flow into hydrogen applications.

Infrastructure support:

Accelerating projects to build, retrofit, or repurpose essential hydrogen infrastructure is crucial. Cross-border supply chains are particularly valuable, with every dollar spent on hydrogen trade infrastructure expected to save $25 in CAPEX.

Supply-side policies:

Governments must back renewable energy projects feeding into hydrogen production and provide investment protection in developing economies to lower capital costs. While some regions have made headway here, global efforts need consistency.

Public procurement:

With government purchasing power accounting for around 13-20% of global GDP, strategic procurement could significantly drive hydrogen uptake in infrastructure and transportation.

Streamlining permits:

Lengthy permitting processes, especially for renewable energy facilities, can delay projects for nearly a decade. Speeding up approvals without compromising environmental and safety standards is crucial.

Inclusion in national energy plans:

Governments should integrate hydrogen into their upcoming Nationally Determined Contributions (NDCs) for the 2025 submission, signalling hydrogen’s role in the energy transition to investors.

Public-private partnerships:

Beyond memoranda of understanding (MoUs), the industry calls for blended finance models and de-risking instruments to bring more private capital into hydrogen projects.

Global standards:

Clear, globally recognised standards for hydrogen lifecycle emissions and certification will strengthen the market’s credibility and ease international trade.

A global hydrogen market vision

The letter outlines the benefits of these measures, suggesting that a fully realised global market for hydrogen could reduce energy costs for consumers by up to 40% by enabling a more balanced supply-demand environment.

The industry is positioning itself as ready to collaborate closely with governments to implement these changes, envisioning hydrogen as a keystone in a cleaner, more resilient global energy system.

With the open letter as a rallying cry, the hydrogen industry hopes COP29 will bring forward the policy commitments needed to make this ambitious vision a reality.

As governments weigh their climate strategies, the hydrogen sector is firm: only by committing now to robust incentives, clear mandates, and international cooperation can the world capture the full potential of hydrogen as an anchor in the clean energy transition.