14 November 2024
The International Renewable Energy Agency (IRENA) and the WTO Secretariat launched a new report on 14 November at the 29th UN Climate Change Conference (COP29) in Baku that outlines key policy considerations for fostering trade in renewable hydrogen and its derivatives. The report highlights, in particular, their crucial role in helping economies achieve decarbonisation goals by 2050.
Building on the WTO-IRENA joint report published last year about scaling up green hydrogen production, the new publication, titled "Enabling global trade in renewable hydrogen and derivative commodities", further explores the critical role of sound and coherent trade strategies in promoting renewable hydrogen and derived feedstocks and fuels, such as renewable ammonia, methanol and e-kerosene.
It provides policymakers with practical suggestions for fostering global markets through tools such as developing standardisation and certification, implementing supportive government procurement policies, establishing effective carbon pricing mechanisms, rebalancing tariffs to encourage market development, and promoting cross-border collaboration.
The report notes that renewable hydrogen and derived commodities could represent approximately 14% of final energy consumption by 2050, particularly in chemical manufacturing, fertiliser production, and heavy-duty transport sectors. It identifies critical infrastructure needs for market development, including pipelines and shipping facilities, and comprehensive strategies for sustainable supply chains. It also emphasises that robust policy frameworks are essential to foster market growth, ensure sustainable production, and facilitate international trade flows.
The report adds that success in building renewable hydrogen markets, in turn, will drive green industrial development and job creation while supporting an efficient transition to low-carbon energy.
The full report can be accessed at:
https://www.wto.org/english/res_e/publications_e/hydrogenirena112024_e.htm
The 2023 WTO-IRENA report can be accessed at:
https://www.wto.org/english/res_e/publications_e/green_hydrogen_e.htm