Green hydrogen is likely to play a pivotal role in a carbon-free future, as its adoption will enable the decarbonization of energy-intensive industrial processes whose emissions are hard to abate through simple electrification—such as steel and cement production. However, to take advantage of the economic opportunities created by its adoption at scale, countries will need to rethink the roles they could play in a new energy landscape and define strategic industrial policies accordingly.

On December 3, 2022, Nicola De Blasio, Senior Fellow with the Belfer Center’s Environment and Natural Resources Program (ENRP), chaired a panel discussion, “Is Hydrogen Our Future?,” at the Rome MED – Mediterranean Dialogue (Rome MED), an annual high-level conference on Mediterranean geopolitics. The panel discussion was part of ENRP’s Future of Hydrogen project’s ongoing engagement with global policymakers, who are increasingly viewing hydrogen as a solution to meeting their decarbonization and energy security goals. 

The Environment and Natural Resources Program’s Future of Hydrogen project published several papers this year investigating renewable hydrogen production, use, and trade between countries. In the following interview, Senior Fellow Nicola De Blasio and Research Fellow Laima Eicke share their insights on green hydrogen's growing economic and political momentum. 

The adoption of green hydrogen will be critical for decarbonizing industrial processes at scale, especially hard-to-abate ones such as steel and cement production. This paper maps the role countries could play in future green hydrogen industrial markets based on three criteria: resource endowment, existing industrial production, and economic relatedness.

This report studies the role countries could play in future green hydrogen industrial markets, focusing on three key applications: ammonia, methanol, and steel production. To elucidate the impact of the transition to a low-carbon economy on energy value chains, Eicke and De Blasio propose an analytical framework to cluster countries into five groups based on the variables of resource endowment, existing industrial production, and economic relatedness.

The expansion of renewable energies not only lowers carbon emissions, it also redistributes resources among actors. This article argues that green industrialization – specifically, manufacturing and the development of renewable energy technologies — creates economic gains that impact political processes and increase renewable energy policy ambition. Building on a combined framework of policy feedback and global value chain literature, authors Laima Eicke and Silvia Weko see domestic value creation as a key determinant of coalition strength and learning effects for policymakers. 

The transition to low-carbon energy systems has the potential to shift geopolitical power, as it will create winners and losers across countries. Laima Eicke and Silvia Weko argue that what matters for ‘winning’ transition processes are political and economic factors, such as investments in renewables and technological development, as well as the relative timing of transition processes.