Reports & Papers

This paper focuses on the market and geopolitical implications of renewable hydrogen adoption at scale in the European Union (EU). The authors analyze long-term strategies based on three reference scenarios in which the EU prioritizes a different strategic variable: energy independence, cost (optimization), or energy security. Developing competitive and secure hydrogen markets will require close coordination between policy, technology, capital, and society—and for EU countries to unite behind a shared long-term vision.

To accelerate the global transition to a low-carbon economy, all energy systems must be actively decarbonized. While hydrogen has been a staple in the energy and chemical industries for decades, clean hydrogen – defined as hydrogen produced from water electrolysis with zero-carbon electricity – has captured increasing political and business momentum as a versatile and sustainable energy carrier in the future carbon-free energy puzzle.

This paper analyzes clean hydrogen’s potential for driving emissions reductions in the mobility sector, focusing on road transportation, shipping, rail, and aviation. Overall, transportation is the second-largest producer of global CO2 emissions, after electricity and heat generation, and one of the hardest sectors to decarbonize due to its distributed nature and the advantages provided by fossil fuels in terms of high energy densities, ease of transportation and storage. 

The ongoing COVID-19 pandemic is upending our lives and the global economy in ways unimaginable until recently. While the overall impacts are still difficult to quantify, ramifications are sure to be felt for decades to come. Providing secure, reliable, and affordable resources for all without causing devastating environmental consequences is perhaps the greatest challenge of the 21st century. But the pandemic has significantly altered dynamics and changed priorities. How is this impacting the quest for sustainability?

In this paper we analyze these challenges by focusing on the plastic industry. There is no doubt that plastic has molded society in many ways that make our lives easier and safer, but it has also created a global environmental and sustainability crisis. In order to curb our addiction to plastic, the world had been waging a war against virgin plastic, but the pandemic has turned an enemy into a much-needed ally. How can we leverage the advantages of plastic without contributing to the world’s environmental crisis? This dilemma poses a significant challenge, but also opens an opportunity to address sustainability at a systemic level through circularity and the transition to low-carbon alternatives to petroleum-based plastics.

Innovation will be critical in the transition to a low-carbon economy. Meeting the goals of the Paris Climate Agreement requires reworking our existing energy infrastructure, but it is easier said than done. Rethinking energy systems hinges on reconciling the interests of many existing stakeholders: investors, banks, governments, energy companies, and consumers. Developing and fostering new ideas is the first step toward illuminating the frontiers of what is possible.

Gulf countries have hailed their investments in renewable energy, but some basic questions remain about the extent to which it makes sense for GCC states to invest aggressively in renewables. The sheer magnitude of such investments will require these countries to mobilize significant public resources.  Therefore, such an assessment requires these countries to focus on national interests, not just a desire to be perceived as constructive participants in the global transition away from carbon energy. 

This report starts by identifying four common strategic justifications for investing in renewable energy in GCC countries. Each of these rationales highlights a different aspect of renewable energy investments. In addition, each rationale is based on different assumptions about the underlying drivers of such investments, and each rationale is based on different assumptions about the future of energy. 
 

To accelerate the global transition to a low-carbon economy, all energy systems and sectors must be actively decarbonized. While hydrogen has been a staple in the energy and chemical industries for decades, renewable hydrogen is drawing increased attention today as a versatile and sustainable energy carrier with the potential to play an important piece in the carbon-free energy puzzle. Countries around the world are piloting new projects and policies, yet adopting hydrogen at scale will require innovating along the value chains; scaling technologies while significantly reducing costs; deploying enabling infrastructure; and defining appropriate national and international policies and market structures.

What are the general principles of how renewable hydrogen may reshape the structure of global energy markets? What are the likely geopolitical consequences such changes would cause? A deeper understanding of these nascent dynamics will allow policy makers and corporate investors to better navigate the challenges and maximize the opportunities that decarbonization will bring, without falling into the inefficient behaviors of the past.

In this report, the authors conduct a benchmarking analysis for energy and CO2 emissions intensity of the steel industry among the largest steel-producing countries.