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Hydrogen Insights 2022 | An updated perspective on hydrogen market development and actions required to unlock hydrogen at scale

Policy - Priority actions for 2022-2023:
1. Enable demand visibility and regulatory certainty by adopting legally binding measures. Create demand visibility through measures such as targets or quotas for hydrogen consumption across end-use sectors, alongside public procurement measures or competitive bidding for (carbon) contracts for difference. This will bridge the gap to cost competitiveness, boost investor confidence and have a ripple effect throughout the value chain, enabling investments in hydrogen supply, equipment manufacturing, and infrastructure.
2. Fast-track access to public funding for hydrogen projects. Introduce measures such as grants, loans, tax credits, as well as funding support schemes based on competitive bidding. Policymakers across geographies have put forward plans to roll out the relevant instruments designed to stimulate hydrogen uptake. Right now, it is crucial to move from vision to action, and proceed with the implementation of these instruments. Rapid rollout of support schemes for hydrogen will lift mature projects off the ground and accelerate hydrogen deployment to support global climate goals within this decade, while bringing the costs further down.
3. Ensure international coordination and support credible common standards and robust tradeable certification systems. A common standard methodology for assessing all hydrogen production pathways is essential to allow the hydrogen with the lowest carbon footprint to reveal its climate benefits. Robust certification systems are instrumental in building consumer trust and paving the way for global hydrogen trade, which in turn will support scale-up and minimize hydrogen cost.
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