Green hydrogen for sustainable industrial development: A policy toolkit for developing countries

Green hydrogen production can create domestic value and jobs, and enhance international competitiveness through local manufacturing of related technologies and infrastructure, greening emission-intensive sectors and attracting foreign direct investment into domestic industries.

This report challenges the prevailing narrative that green hydrogen is primarily a product for export from renewable-rich and industry-poor countries; rather, it underscores green hydrogen’s potential as a catalyst for sustainable development within developing countries that can contribute to economic growth, environmental sustainability and social progress.

A central theme of the report is the promotion of a just transition approach to green hydrogen development. Emphasising the importance of policy coordination, it introduces a ‘clover approach’ comprising four key elements: prioritising local use of green hydrogen; alignment with national objectives; starting with small- to medium-sized projects; and the phased implementation of green hydrogen production and applications. This approach ensures that green hydrogen production contributes to sustainable development, technological advancement and job creation in developing countries.