Why Hydrogen Matters
Produced from renewable energy sources, green hydrogen (GH2), also known as renewable hydrogen, is the fuel of the future. It is clean, storable and portable, and can be blended into existing energy networks and integrated with current infrastructure.
Green hydrogen and low-carbon hydrogen 
"Low Carbon Hydrogen - hydrogen derived from non-renewable sources, and that meets a greenhouse gas emission reduction threshold of 70% compared to fossil-based hydrogen." are key to decarbonization of hard-to-abate industries such as steel production, cement, chemicals and heavy transport, which together account for 30 per cent of global CO2 emissions. In short, hydrogen can help countries around the world achieve their climate goals.
Opportunities
Green hydrogen offers unique opportunities for net zero industrial development in developing countries with abundant renewable power potential. It can pave the way for job creation, skills upgrading, investment mobilization, energy security and participation in global hydrogen trade.
Green hydrogen can reinforce developing countries’ overall resilience and drive a diversified and knowledge-based economy. Many countries with an already existing gas infrastructure can pursue the goals of net-zero industrialisation through the concurrent application of low carbon hydrogen and green hydrogen.
Opportunities
Green hydrogen offers unique opportunities for net zero industrial development in developing countries with abundant renewable power potential. It can pave the way for job creation, skills upgrading, investment mobilization, energy security and participation in global hydrogen trade.
Green hydrogen can reinforce developing countries’ overall resilience and drive a diversified and knowledge-based economy. Many countries with an already existing gas infrastructure can pursue the goals of net-zero industrialisation through the concurrent application of low carbon hydrogen and green hydrogen.
Challenges
Several obstacles hinder developing countries and transition economies from creating a sustainable hydrogen economy, i.e. absence of a domestic green hydrogen market and the necessary infrastructure as well as lack of access to global trade. This prevents them from taking advantage of the opportunities which hydrogen offers.
The most serious challenges for developing countries are a lack of:
- Conducive policies and regulations;
- Appropriate standards and quality infrastructure;
- Financial instruments;
- Skills and know-how;
- Accessible and affordable innovation of hydrogen technology, systems, equipment and infrastructure;
- Co-ordination between key stakeholders at the national, regional and
global level.
UNIDO's Programme helps developing countries trackle these challenges
- To learn more about the UNIDO approach see: The Global Programme
- To learn about our areas of work and how we address a challenges, see: Our Work