Global law firm Baker McKenzie has today released a report showing that despite regulatory challenges, legal complexity and the current lack of incentives to invest in decarbonised hydrogen without government support, important opportunities exist for businesses seeking to reap first-mover advantages.
Countries across the world are rapidly concluding that a successful decarbonisation path cannot solely rely on renewable electricity and that a zero carbon hydrogen solution will be needed.
Growing the clean hydrogen market will also be necessary to lower costs, to increase the power system’s flexibility and to decarbonize many industries.
Therefore, many governments have started supporting the growth of the low carbon hydrogen market, just as they did for renewables.
Baker McKenzie’s report, Shaping Tomorrow’s Global Hydrogen Market, provides insights on how first-movers can use government support and policies to reap the benefits of de-risked investments and shape the future of the global clean hydrogen market.
Commenting on the report, Christopher Jones, Co-Chair of Baker McKenzie’s Oil & Gas Sub Industry Group and lead member of the Hydrogen Team, said, “Clean hydrogen will play a crucial role in the new energy mix, bringing with it innovative solutions, technologies and policies to deliver a fully decarbonised economy.”
“Whilst still in at early stages in its development, change is coming and much sooner than many think today.”
“Companies that make smart use of government support in the form of public funding and public-private partnerships will lead this revolution.”
Key takeaways from the report include:
- The essential role of hydrogen in combatting climate change and delivering governments’ decarbonisation targets
- The increasing support being provided by governments to enable a decarbonised hydrogen market, including a summary of key legal, regulatory and policy developments around the world in this regard
- An overview of the future hydrogen markets, including industrial users, transport, buildings and power generation
- Insights on how first-movers can use government support and policies to reap the benefits of de-risked investments and shape the future of the global hydrogen market
“Clean hydrogen also presents one of the best options for meeting the goals of the Paris Agreement to limit global warming to well below 2 degrees Celsius,” Baker McKenzie’s Global Head of Climate Change Ilona Millar said.
“Already we are seeing governments and companies looking to hydrogen as a way to reduce emissions while still addressing growing demands for energy.
“Extensive efforts are already underway to ensure policy and regulatory environments that foster these developments are in place.”
The report can be downloaded here.