《IRENA & WTO：2024綠氫與國際貿易：支持全球向低碳經濟轉型報告（英文版）（60頁）.pdf》由會員分享，可在線閱讀，更多相關《IRENA & WTO：2024綠氫與國際貿易：支持全球向低碳經濟轉型報告（英文版）（60頁）.pdf（60頁珍藏版）》請在三個皮匠報告上搜索。

1、International trade and green hydrogenSupporting the global transition to a low-carbon economyDISCLAIMERThis publication and the material herein have been prepared under the responsibility of the WTO Secretariat and of the International Renewable Energy Agency and are provided“as is”.All reasonable

2、precautions have been taken by the WTO and IRENA to verify the reliability of the material in this publication.However,neither the WTO nor IRENA,nor any of their officials,agents,data or other third-party content providers provides a warranty of any kind,either expressed or implied,and they accept n

3、o responsibility or liability for any consequence of use of the publication or material herein.The information contained herein does not necessarily reflect the positions or opinions of WTO members,nor of the members of IRENA.It is without prejudice to the rights and obligations of WTO members under

4、 the WTO agreements.The opinions expressed and arguments employed are not intended to provide any authoritative or legal interpretation of provisions of the WTO agreements,and shall in no way be read or understood to have any legal implications.The mention of specific companies or certain projects o

5、r products does not imply that they are endorsed or recommended by either the WTO or IRENA in preference to others of a similar nature that are not mentioned.The designations employed and the presentation of material herein do not imply the expression of any opinion on the part of the WTO or IRENA c

6、oncerning the legal status of any region,country,territory,city or area or of its authorities,or concerning the delimitation of frontiers or boundaries.INTERNATIONAL TRADE AND GREEN HYDROGEN 1Contents Acknowledgements and Abbreviations 2 Executive summary and Five actions for consideration by policy

7、makers 3 1 Introduction 6 1.1 The role of green hydrogen in a global low-carbon economy 7 1.2 Prospects for green hydrogen production 10 1.3 How could global hydrogen trade play out in the future 13 2 Mapping supply chain issues from a trade perspective 16 2.1 Trade in hydrogen and hydrogen derivati

8、ves 20 2.2 Electrolysers as a key technology for the green hydrogen supply chain 24 3 Trade-related policies along the hydrogen value chain 26 3.1 Tariffs and other taxes 29 3.2 Quality infrastructure standards,certification and beyond 30 3.3 Subsidies 34 3.4 Sustainable government procurement 37 4

9、Considerations for development 40 5 The role of international cooperation 44 Five actions for consideration by policymakers 48 Annex 51 Bibliography 54ACKNOWLEDGEMENTSThis publication has been prepared under the overall guidance of Aik Hoe Lim of the World Trade Organization(WTO)and Roland Roesch of

10、 the International Renewable Energy Agency(IRENA).The core team was composed of Francisco Boshell,Luis Janeiro,Ann Kathrin Lipponer and Jaidev Dhavle of IRENA and Svetlana Chobanova,Mateo Ferrero and Rainer Lanz of the WTO.Valuable comments and inputs were also provided by Zafar Samadov,Emanuele Bia

11、nco,Raul Miranda,Paul Komor and Deepti Ashok Siddhanti(IRENA),Monia Snoussi-Mimouni,Ankai Xu,Jose Luis Monteiro,Seref Coskun,Ruosi Zhang,Michael Roberts,Vishva Subramaniam and Philippe Pelletier(WTO),and Chris Agius(IEC).ABBREVIATIONSCO2 carbon dioxideCTE Committee on Trade and EnvironmentGDP gross

12、domestic productGH2 green hydrogenGHG greenhouse gasGPA Agreement on Government ProcurementGWgigawattH2 dihydrogen(i.e.,hydrogen in a stable gaseous form)IEA International Energy AgencyIEC International Electrotechnical CommissionIECRE IEC System for Certification to Standards Relating to Equipment

13、for Use in Renewable Energy ApplicationsIECEx International Electrotechnical Commission System for Certification to Standards Relating to Equipment for Use in Explosive AtmospheresIISD International Institute for Sustainable DevelopmentIPHE International Partnership for Hydrogen and Fuel Cells in th

14、e EconomyIRENA International Renewable Energy AgencyISO International Organization for StandardizationLDC least-developed countryLH2 liquid hydrogenLOHC liquid organic hydrogen carrierMt/y million tons per yearMt CO2 megatons of carbon dioxideMtH2/year megatons of hydrogen per yearNH3ammonia OECD Or

15、ganisation for Economic Co-operation and DevelopmentPJpetajoulePVphotovoltaicQI quality infrastructureR&D research and developmentSCM subsidies and countervailing measuresTBT technical barriers to tradeUNIDO United Nations Industrial Development OrganizationWEF World Economic ForumWTO World Trade Or

16、ganizationEXECUTIVE SUMMARYGreen hydrogen,produced exclusively from renewable energy,is rapidly gaining importance as a potential factor in the transition to a net-zero global economy.It offers a solution to decarbonize energy applications where the direct use of renewable electricity or fuels is no

17、t a technically viable or cost-effective solution,such as heavy industry,shipping,aviation and seasonal energy storage.Green hydrogen could play a key role in achieving the goals of the Paris Agreement1 by mid-century,i.e.,to pursue efforts to limit the increase in the global average temperature to

18、1.5C,and to well below 2C,above pre-industrial levels.Hydrogen production is currently a major net contributor to climate change,rather than to decarbonization,because current methods of producing hydrogen are carbon-intensive.Thus,to arrive at a net-zero world,the landscape of hydrogen production a

19、nd consumption will need to change dramatically.To achieve the goals of the Paris Agreement,the current uses served by hydrogen(e.g.,to produce fertilizers or other chemicals)will need to be supplied by clean hydrogen.In addition,the supply of hydrogen overall will need to expand more than five-fold

20、 by 2050,to more than 500 MT/y,if it is to serve a broader range of uses and decarbonize carbon-intensive sectors.Given that renewable electricity is necessary to produce green hydrogen,delivering on such a scenario will,in parallel,require a massive expansion in renewable power generation.The Inter

21、national Renewable Energy Agency(IRENA)estimates that the global technical potential to produce green hydrogen is as much as twenty times what the total global primary energy demand will be in 2050.Access to high-quality abundant renewable power generation will be a crucial cost factor,as this will

22、be a key driver of the relative competitiveness of certain regions in producing hydrogen or in producing tradable commodities using hydrogen.Green hydrogen and derivative commodities,such as green ammonia,make it possible to produce renewable energy in areas with substantial renewable energy potenti

23、al,and to transport it to regions with significant hydrogen demand but an insufficient or more costly renewable energy supply.International trade could play a significant role in matching supply and demand for green hydrogen and its derivatives,because the domestic production potential of some econo

24、mies and regions may not be enough to satisfy their domestic demand,and it may be cheaper for some economies to import green hydrogen from locations with lower production costs.Analysis by IRENA suggests that by 2050 about one quarter of the total global hydrogen demand could be satisfied through in

25、ternational trade.Currently hydrogen is largely produced using natural gas,with trade flows in the order of US$150-200 million per year.The trade of commodities that can be derived from(green)hydrogen,notably ammonia and methanol is more significant.These were respectively worth US$17.5 billion and

26、US$14.1 billion in 2022.The trade dynamics for green hydrogen and derivatives in a net-zero scenario will be very different from those of todays international fossil fuel markets.The geographical distribution of green hydrogen production potential is widespread as it is linked to solar and wind powe

27、r supply and there are few major potential importers.By contrast,in todays oil and gas markets,a handful of players control a large proportion of the global supply,for a much larger number of importers.The physical characteristics of hydrogen render it technically difficult and economically costly t

28、o transport over long distances.The role of green hydrogen trade in the transition to a low-carbon economyINTERNATIONAL TRADE AND GREEN HYDROGEN 3Green hydrogen could play a key role in achievingthe goals of the ParisAgreement by mid-century.For this reason,green hydrogen trade will likely materiali

29、ze to a great extent as trade in commodities produced through the use of hydrogen,such as ammonia,methanol,synthetic fuels or iron.The prospect of cost-competitive green hydrogen production in regions with abundant,high-quality renewable energy could potentially drive the relocation of some energy-i

30、ntensive industries and the emergence of new commodity trade flows.As well as increasing trade of hydrogen and its derivative commodities,scaling up green hydrogen for the purpose of decarbonization will result in a significant increase in trade flows of the technologies and services required for it

31、s production,such as electrolysers(which use electricity to split water into hydrogen and oxygen),compressors,pipes and valves.At present,more than 30 economies around the globe already have national strategies for low-carbon hydrogen.Therefore,it is already critical to begin anticipating the enabli

32、ng conditions to facilitate this trade,in terms of infrastructure development,market design and regulations,and conducive trade policies.A number of pathways could help to render trade policies more open,predictable,coherent and inclusive,to advance their role in fostering and shaping the developmen

33、t of green hydrogen supply chains.This report outlines five actions for consideration by policymakers:1.Addressing trade barriers along the green hydrogen supply chain to promote the development of green hydrogen by lowering costs and fostering technology access.2.Developing sound quality infrastruc

34、ture to guarantee the environmental integrity of green hydrogen production and provide information on the production process and emissions footprint along the value chain.3.Implementing support policies to help sustain market growth,promote cost efficiencies and narrow the cost differential between

35、the production costs of green and of fossil-based hydrogen.4.Using sustainable government procurement to foster a large and stable demand for green hydrogen,its derivatives and related technologies.5.Increasing international cooperation in support of green hydrogen trade to ensure alignment and cons

36、istency in definitions and standards for emissions certification schemes and contribute to bringing about social and economic benefits.International trade couldplay a significant role inmatching supply anddemand for green hydrogenand its derivatives.Endnotes1 See https:/www.un.org/en/climatechange/p

37、aris-agreement.INTERNATIONAL TRADE AND GREEN HYDROGEN 5 Promote trade in goods and services related to renewable energy production.Reduce tariffs and non-tariff barriers on green hydrogen,electrolysers,derivatives and other products along the supply chain.Implement targeted and non-discriminatory en

38、vironmental subsidies to help sustain growth in electrolyser capacity and green hydrogen production.Close the economic gap between fossil fuels and green hydrogen by phasing out fossil fuel subsidies.Encourage technology development and innovation through dialogue.Engage in cooperation fora on green

39、 hydrogen.Increase technical assistance and capacity-building.Support the needs of developing economies through Aid for Trade.Adopt national measures based on international standards and engage in international standardization.Foster international dialogue on carbon measurement methodologies,definit

40、ions of low-carbon hydrogen and verification procedures.Inform customers via labelling requirements based on quality infrastructure.A set of five actions for economies to consider in order to scale up and facilitate global trade of green hydrogen.Implement sustainable government procurement policies

41、 by purchasing low-carbon goods and services and stimulating innovative solutions.Consider coordinated demand-creating policies and collaboration to achieve economies of scale and accelerate cost reductions.FIVE ACTIONS FOR CONSIDERATION BY POLICYMAKERS 1.Address trade barriers along the green hydro

42、gen supply chain2.Develop sound quality infrastructure for green hydrogen trade3.Implement support policies for green hydrogen 4.Use sustainable government procurement to foster green hydrogen demand 5.Increase international cooperation on green hydrogen tradeINTRODUCTION11.1 The role of green hydro

43、gen in a global low-carbon economy To meet the goals of the Paris Agreement by mid-century,the global energy system will need to be deeply transformed within the next two and a half decades.According to the scenario proposed in the International Renewable Energy Agencys(IRENA)World Energy Transition

44、s Outlook 2023:1.5C Pathway(IRENA,2023a),more than two-thirds of the carbon dioxide(CO2)emission reductions towards a net-zero energy system can be achieved through an increased supply of renewable energy,the electrification of energy services currently supplied with fossil fuels,and the improvement

45、 of energy efficiency.In this scenario for a decarbonized world,electricity would become the central energy carrier,accounting for more than half of the worlds final energy consumption,up from about one fifth today.However,not all energy uses can be electrified.In some cases,a renewable molecule is

46、needed as part of the process,either as feedstock such as hydrogen for ammonia production or as a chemical agent such as hydrogen for primary steel production.In other cases,electrification is not technically feasible at present due to the energy density requirements of the fuel,such as in the aviat

47、ion and shipping sectors.Therefore,there is a need for solutions to close the decarbonization gap for applications in which the direct use of renewable electricity or fuels is not a technically viable or cost-effective solution.Renewable green hydrogen can act as the link between renewable electrici

48、ty generation and hard-to-abate(i.e.,for which the transition to net zero is difficult either in terms of technology or cost)sectorsINTERNATIONAL TRADE AND GREEN HYDROGEN 7or applications(IRENA,2022a).Renewable electricity can be converted to green hydrogen via electrolysis,broadening the scope of r

49、enewable energy utilization.Green hydrogen is a key complement to renewable electrification,offering a solution to decarbonize some applications,for example in heavy industry(including those where fossil hydrogen is used today),shipping and aviation,and seasonal energy storage.Considering all these

50、applications,IRENA estimates that hydrogen and its derivatives would satisfy a sizeable fraction(14 per cent)of final energy demand in 2050 in a scenario in which rising global temperatures resulting from emissions are limited to not more than 1.5C(see Figure 1).The bulk of this hydrogen and of its

51、derivatives should be renewable in order to reach climate neutrality in the energy system overall(IRENA,2023a).Today,the global production of hydrogen around 95 megatons of hydrogen per year(MtH2/year)is almost exclusively derived from fossil fuels without associated carbon capture and storage.This

52、fossil-based hydrogen is predominantly utilized in industries such as oil refining,fertilizer production,and downstream chemical processes.Current production of hydrogen emits the equivalent of 1,100-1,300 megatons of CO2(Mt CO2)globally(IEA,IRENA and UN Climate Change High-Level Champions,2023).Thu

53、s,at present,hydrogen production is a major net contributor to climate change,rather than a vector for decarbonization.In a net-zero world,the current landscape of hydrogen production and consumption will need to have changed dramatically.First,existing hydrogen uses need to transition to a clean hy

54、drogen supply.Second,hydrogen supply overall needs to expand to serve a broader range of applications in hard-to-decarbonize sectors.IRENA estimates that total hydrogen production will need to grow more than five-fold from now until 2050(IRENA,2023a).Delivering on this scenario will require a massiv

55、e expansion in renewable power supply,as the electricity needed for that purpose is comparable to todays total global electricity consumption.1 It will also require an unprecedented scale-up and deployment of electrolyser capacity,from a negligible installed base today to more than 5,700 gigawatts(G

56、W)by 2050(see Figure 2).This expansion of hydrogen production will require the development of new supply chains.This,in turn,will have trade implications,both in terms of the trade of renewable hydrogen itself(or tradable commodities produced with it,such as ammonia,methanol and reduced iron)2 as we

57、ll as trade in the required equipment and services to produce the hydrogen,transport it,store it and deliver it to the consumers at the end of the chain.14%Green hydrogen is a keycomplement to renewableelectrification.Hydrogen and its derivatives could satisfy 14%of final energy demand in 2050.In a

58、net-zero world,thecurrent landscape ofhydrogen production and consumption will needto change.FIGURE 1Breakdown of total final energy consumption by energy carrier under IRENAs 1.5C scenario Source:IRENA(2023a).FIGURE 2Global clean hydrogen supply in 2020,2030 and 2050 in IRENAs 1.5C scenarioSource:I

59、RENA(2023a).TFEC(%)20202050(1.5C Scenario)374 EJ Total final energy consumption353 EJ Total final energy consumption22%Electricity(direct)51%Electricity(direct)4%6%Traditional uses of biomass5%Modernbiomassuses63%Fossil fuels16%Modern biomass uses14%Hydrogen(direct use and e-fuels)*7%OthersFossil fu

60、els12%OthersRenewable sharein hydrogen94%91%Renewable share in electricity28%Renewable share in electricityNote:1.5-S=1.5C scenario;GW=gigawatt;PJ=petajoule.INTERNATIONAL TRADE AND GREEN HYDROGEN 91.2 Prospects for green hydrogen productionA major barrier to the deployment of green hydrogen to date

61、has been the higher costs of production compared to unabated(i.e.,which causes high carbon emissions)fossil-based hydrogen.The prospects for cheaper green hydrogen in the future are driven by two key factors:the cost of renewable electricity and the cost of electrolysers.The cost of renewable power

62、generation is falling very quickly(see Figure 3).For instance,over the last 12 years,the cost of solar photovoltaic(PV)power has dropped by almost 90 per cent.The costs of onshore and offshore wind generation have also dropped very substantially,by 69 per cent and 59 per cent respectively(IRENA,2023

63、b).Today,solar and wind are the cheapest forms of new power generation in many regions of the world,and costs have the potential to continue to decline as the technology continues to improve.There could potentially be a similar cost reduction phenomenon with electrolysers to produce green hydrogen f

64、rom renewable electricity.IRENAs analysis suggests that,if technology deployment volumes were to be in line with what is FIGURE 3Global levelized cost*of electricity from newly commissioned utility-scale renewable power technologiesSource:IRENA(2023b).2022 US$/kWhFossil fuel cost range00.10.50.40.20

65、.3201020220.0820.061 0.0530.0560.0420.0610.0490.4450.1070.0330.1970.0810.3800.118201020222010202220102022201020222010202220102022BiomassGeothermalHydropowerSolarphotovoltaicConcentratingsolar powerOffshorewindOnshorewind95th percentile5th percentileNote:kWh=Kilowatt-hour,i.e.,a measure of the quanti

66、ty of energy delivered by one kilowatt of power for a duration of one hour.*The levelized cost of electricity is the ratio of lifetime costs to lifetime electricity production of a power generator,both of which are discounted back to a common year using a discount rate that reflects the cost of capi

67、tal.needed3 to meet the goals of the Paris Agreement by 2050,the effects of learning by doing and economies of scale would trigger substantial reductions in the cost of electrolysers(IRENA,2020a).Such reductions in the installed costs of electrolysers,paired with further cost reductions in renewable

68、 power generation,could make green hydrogen competitive with fossil-based hydrogen already by the second half of this decade in locations with favourable renewable resource conditions(see Figure 4).The overall availability of renewable energy will not be a limitation to scaling up hydrogen productio

69、n in the future.Renewable sources can deliver all the green hydrogen that the world needs for a net-zero energy system:IRENA estimates(IRENA,2022c)the global green hydrogen technical potential at about twenty times the total global primary energy demand in 2050 (see Figure 5.1).In contrast to fossil

70、 fuels,where a handful of countries control a large fraction of the global resource,in the case of green hydrogen,the potential for green hydrogen is much more geographically distributed in nature,as it relies mostly on solar and wind resources,which are available throughout the world (see Figure 5.

71、2).This green hydrogen potential,however,will be available at very different costs across different regions.Hydrogen can be produced most cost-efficiently in locations with the best renewable energy resources and low project development costs(IRENA,2019).Access to high-quality,abundant renewable pow

72、er generation will be crucial,as this will be a key driver of the relative competitiveness of certain regions compared to others to produce hydrogen or tradable commodities produced with hydrogen.Therefore,the production of green hydrogen is likely to scale up in regions with high potential for rene

73、wable energy.Aside from renewable resource conditions,the cost of capital plays a key role in the overall cost of green hydrogen as the cost structure is dominated by capital expenditures and will be another key competitiveness factor.Additional factors to consider include land availability,water ac

74、cess and the infrastructure options necessary for transporting and potentially exporting energy to meet the needs of significant demand centres(IRENA,2022a).FIGURE 4Green hydrogen cost estimations based on deployment levels,power supply and electrolyser cost Source:IRENA(2020a).Hydrogen cost(US$/kg

75、H2)01234562020202520302035204020452050Electrolyser cost in 2050:US$130/kW 5 TW installed capacityElectrolyser cost in 2050:US$307/kW 1 TW Installed capacityFossil fuel rangeElectrolyser cost in 2050:US$130/kW 5 TW installed capacityElectrolyser cost in 2050:US$307/kW 1 TW Installed capacityElectroly

76、ser price US$65/MWhElectrolyser price US$20/MWhElectrolyser cost in 2020:US$650/kWElectrolyser cost in 2020:US$1,000/kWElectrolyser cost in 2020:USD 650/kWElectrolyser cost in 2020:US$1,000/kWINTERNATIONAL TRADE AND GREEN HYDROGEN 11FIGURE 5.1Green hydrogen potential versus global primary energy dem

77、and in 2050 Source:IRENA(2022c).FIGURE 5.2Levelized cost of hydrogen in 2050Source:IRENA(2022c).00.511.522.533.54Levelized cost of hydrogen(US$/kgH2)ChinaRest of the worldRussian FederationSaudi ArabiaSub-Saharan AfricaUnited StatesArgentinaAustraliaBrazilCanadaMENA region02,0004,0006,0008,00010,000

78、Hydrogen technical potential(EJ/yr)Global hydrogen demand in 2050:74 EJGlobal primary energy supply in 2050:614 EJ10.621.532.543.54.5LCOH 55Not eligibleUS$/kgH2 INTERNATIONAL TRADE AND GREEN HYDROGEN 131.3 How global hydrogen trade could play out in the future While there is more than enough green h

79、ydrogen potential to meet the expected global demand,there are economies or regions in which the domestic production potential might not be enough to satisfy the domestic demand.Furthermore,in some cases,it may be cheaper for certain economies to import from locations with lower production costs.Thi

80、s means that international trade could play a significant role in matching supply and demand.Green hydrogen and derivative commodities,such as renewable ammonia,offer opportunities for producing,storing and transporting renewable energy from areas with substantial renewable energy potential to regio

81、ns with significant hydrogen demand but insufficient or more costly renewable energy supply(IRENA,2022a).Hydrogen can potentially be traded in multiple forms.It can be transported over long distances as a gas through pipelines,or it can be shipped in liquid form.Hydrogen can also be further transfor

82、med into another commodity,such as ammonia or methanol,and transported in liquid form.This additional processing results in significant energy losses,and therefore an increase in the cost per unit of energy delivered.Table 1 presents a brief overview of hydrogen transport alternatives with key advan

83、tages and disadvantages.4 To make trade cost-effective,the cost of producing green hydrogen must be sufficiently cheaper in the exporting region compared to the importing region to compensate for the transport cost(IRENA,2022a).5To understand how these global trade flows could potentially play out i

84、n a fully decarbonized global energy system,in 2022 IRENA carried out a trade analysis based on a global cost-optimization model.The analysis focuses on two commodities green hydrogen and green ammonia.The analysis shows that by 2050,about a quarter of the total global hydrogen demand in IRENAs 1.5C

85、 scenario could be satisfied through international trade.The other three-quarters would be domestically produced and consumed.Of the hydrogen that would be internationally traded by 2050 in the 1.5C scenario,around 55 per cent would be traded via pipelines.The remaining 45 per cent of the internatio

86、nally traded hydrogen would be shipped,predominantly as ammonia,which would mostly be used without being reconverted to hydrogen,as an input for the fertilizer industry or as synthetic fuel for international shipping(IRENA,2022a)(see Figure 6).The results summarized above are based entirely on cost-

87、optimization modelling and do not take into account other investment decision factors,such as energy security,political stability or economic development,which may also substantially impact the future landscape of hydrogen production.However,the results are indicative of potential major trade flows

88、and the predominant transport modes.Green hydrogen and itsderivatives offer opportunitiesfor producing,storing andtransporting renewable energy.By 2050,international trade could satisfy about of the total global hydrogen demand in IRENAs 1.5C scenario.of this hydrogen would be traded via pipelines.5

89、5%45%of this hydrogen would be shipped,predominantly as ammonia.TABLE 1Overview of advantages and disadvantages of hydrogen transport alternativesSource:IRENA(2022b).AdvantagesDisadvantagesAmmonia Already produced on a large scale.Already globally traded.Low transport losses.High energy density and

90、hydrogen content.Carbon-free carrier.Can be used directly in some applications(e.g.,fertilizers,maritime fuel).Can easily be liquefied.Toxic and corrosive.High energy consumption for ammonia synthesis.High energy consumption for reconversion(importing region)with high temperature requirement(up to 9

91、00C but more commonly in the 500-550C range).Ship engines using ammonia as fuel need to be demonstrated.Liquid hydrogen Limited energy consumption for regasification(most of the energy is consumed in the exporting region,which is expected to have low renewable energy costs).No need for a purificatio

92、n system at the destination.Easier transport at the importing terminal.Low energy consumption to increase pressure of hydrogen delivered.Liquefaction is already a commercial technology.Very low volumetric energy density.High energy losses for liquefaction.Boil-off losses during shipping and storage.

93、Cryogenic temperatures lead to high equipment cost.Liquid organic hydrogen carrier(LOHC)Can be transported using existing infrastructure,making it suitable for multi-modal transport.Low capital cost for all steps.Can be easily stored.High energy consumption for dehydrogenation(importing region).Requ

94、ires further purification of the hydrogen produced.Only 4-7%of the weight of the carrier is hydrogen.All the possible carriers currently have a high cost.Most of the possible carriers require scaling up multiple times from current global production.Gas(pipelines)Transport and storage are proven at a

95、 commercial scale.Existing network can potentially be repurposed to hydrogen.Carbon-free carrier.Becomes more attractive as the volume increases.Storage in specific types of reservoirs can lead to losses and contamination.Not all the pipeline materials are suitable for hydrogen.Not all regions have

96、an existing gas network.Cost increases significantly for offshore pipelines.Energy consumption for transport is higher than for natural gas.PROSPECTS FOR GREEN HYDROGEN PRODUCTION 15FIGURE 6Global hydrogen trade flows under optimistic technology assumptions in 2050Source:IRENA(2022a).4 771PJ2 382PJP

97、J1 606136PJ1 094PJPJPJEuropeSouth East AsiaAustraliaChinaIndiaSouth AfricaJapanRepublic of KoreaUnitedStatesNorthAfricaMiddleEastLatinAmerica0 100NH3 Flow(PJ)101 300301 8000 100LH2 Flow(PJ)101 600601 90038LOHC Flow(PJ)ExporterImporterH2 Flowwithin regionNH3 Flowwithin regionImporter/Exporter0 100H2

98、Flow(PJ)101 600601 900Beyond the trade of hydrogen itself,the prospect of cost-competitive hydrogen production in regions with abundant and high-quality renewable energy could potentially drive the relocation of some key energy-intensive industries and the emergence of new commodity trade flows.Majo

99、r green hydrogen-consuming industries would include ammonia,methanol or iron production.While transporting hydrogen over long distances is technologically complex and costly(both economically and in terms of energy),the transport of these processed commodities represents a small fraction of the over

100、all production cost.Therefore,relatively small differences in the cost of hydrogen production across geographies could potentially make the relocation of industrial facilities economically attractive(IRENA,2022a).This presents an opportunity for countries with abundant renewables to indirectly expor

101、t their domestic energy resource in the form of higher value-added industrial products.Note:NH3=ammonia;PJ=petajoule;H2=dihydrogen(hydrogen in a stable gaseous form);LH2=liquid hydrogen;LOHC=liquid organic hydrogen carrier.Optimistic capital expenditure assumptions for 2050:photovoltaic(PV):US$225-4

102、55/kW;onshore wind:US$700-1,070/kW;offshore wind:US$1,275-1,745/kW;electrolyser:US$130/kW.Weighted average cost of capital:per 2020 values without technology risks across regions.Green hydrogen technical potential is based on assessing land availability for solar PV and wind.Demand is in line with a

103、 1.5C scenario from IRENA(2023a).Disclaimer:This map is provided for illustration purposes only.Boundaries and names shown on this map do not imply the expression of any opinion on the part of IRENA or WTO concerning the status of any region,country,territory,city or area or of its authorities,or co

104、ncerning the delimitation of frontiers or boundaries.Endnotes1 IRENAs 1.5C scenario considers a 94 per cent renewable share in the global production of hydrogen and derivatives in 2050.2 Reduced iron is solid iron ore or other iron-bearing materials from which oxygen has been removed without melting

105、 it,by means of reducing agents,i.e.,carbon monoxide and hydrogen.See,for example,https:/www.metallics.org/dri-production.html.3 Understood as the annual deployments of electrolyser capacity in line with IRENA(2023a).4 For more information about techno-economic considerations for key hydrogen carrie

106、rs,see IRENA(2022c).5 IRENA is working on an extension of this analysis to include trade flows related to methanol and iron produced with green hydrogen.INTERNATIONAL TRADE AND GREEN HYDROGEN 15MAPPING SUPPLY CHAIN ISSUES FROM A TRADE PERSPECTIVE2Green hydrogen has a number of uses.It can be used di

107、rectly as an energy carrier and chemical input in multiple end-use applications.It can also be combined with a sustainable carbon source or with nitrogen,to produce derivative compounds such as methanol or ammonia,which can be used as feedstock for chemical production(e.g.,plastics and fertilizers)o

108、r as sustainable fuels.Figure 7 shows a simplified illustration of the value chain of green hydrogen,from the production of renewable power,through transformation and transport and to end-use possible applications.The progressive adoption of green hydrogen as a key building block of the energy trans

109、ition will have trade implications at different levels.First,green hydrogen can be traded either as a gas(in compressed tanks,or via pipelines)or as a liquid INTERNATIONAL TRADE AND GREEN HYDROGEN 17The adoption of greenhydrogen as a building block of the energy transition willhave trade implication

110、s atdifferent levels.FIGURE 7Green hydrogen production,conversion and end uses across the energy systemSource:IRENA(2022b).RenewableenergyElectrolysisSustainableCO2 captureStoragePipelineSteel industryChemical industryRefineriesTrucksShippingGreenammoniaSynthetic fuels*2222222CO2N22INDUSTRYPOWERGENE

111、RATIONHEATINGShippingAviationCarsRailTrucksBusesTRANSPORTProductionFURTHERPROCESSINGEnd UseNO TRANSFORMATIONTRANSFORMATIONTransformationNH3TransportNH3Note:The term“synthetic fuels”refers here to a range of hydrogen-based fuels produced through chemical processes with a carbon source (carbon monoxid

112、e(CO)and CO2 captured from emission streams,biogenic sources or directly from the air).They include methanol,jet fuels,methane and other hydrocarbons.The main advantage of these fuels is that they can be used to replace their fossil fuel-based counterparts and can,in many cases,be used as direct rep

113、lacements that is,as drop-in fuels.Synthetic fuels produce carbon emissions when combusted,but if their production process consumes the same amount of carbon,in principle this allows them to have net-zero carbon emissions.(in ships).Second,green hydrogen can be traded in the form of chemical derivat

114、ives,such as methanol,ammonia,methane and jet fuel.Third,green hydrogen can enable the trade of other low-carbon commodities,such as metallic iron,which can be produced using hydrogen as a reductant.The adoption of green hydrogen,as well as the trade of hydrogen and its derivatives,will also have im

115、plications for the trade of goods and services required along the value chain.Figure 8 provides an illustrative summary of such goods and services.FIGURE 8Overview of tradable goods and services along the green hydrogen and derivatives supply chainSource:IRENA and WTO.EquipmentServicesTrade in a wid

116、e range of goods related to hydrogen production could be subject to change,including energy generation equipment,electrolysers for hydrogen production,compressors,pipes,gas management systems,transport vessels and storage tanks.This may also be the case with end-use technologies,such as chemical pro

117、duction plants,iron-making facilities,fuel cells and gas turbines.Beyond the“hardware”of the green hydrogen supply chain,a variety of domestic and traded services will be needed.A number of services are common across the different stages of the supply chain,such as research and development(R&D),tech

118、nical testing and analysis,consulting,training and various other professional and business services.At the same time,at each stage of the supply chain,some services may be more important than others.For instance,design,engineering,operation and construction services are particularly relevant for the

119、 production stages of renewable energy and hydrogen,while transportation and storage,and wholesale and retail services are among those that are more relevant further downstream in the chain.INTERNATIONAL TRADE AND GREEN HYDROGEN 19Renewable energy productionHydrogen&hydrogen derivatives productionTr

120、ansport,storage and reconversionUse Renewable energy generation equipment,e.g.,solar panels,wind turbines,etc.Electric equipment.Design Engineering Related construction Operation and managementR&D,technical testing and analysis,consulting and training,various professional and business services Trans

121、portation and storage services Related construction (e.g.,port terminals)Wholesale and retail(e.g.,hydrogen stations)Marketing Electrolysers Compressors,valves,flow control,metering and related equipment.Ammonia,methanol,direct reduced iron production plants.Piping and storage systems.Compressors,va

122、lves,flow control,metering and related equipment.Hydrogen,ammonia,methanol,hot briquetted irontransport vessels.Ammonia,methanol,production plants.Direct reduction furnaces for iron production.Fuel cell systems.Hydrogen-ready(industrial)boilers Hydrogen-ready gas turbines for power generation.Ammoni

123、a,methanol and hydrogen storage equipment.2.1 Trade in hydrogen and hydrogen derivativesThe value of global hydrogen imports(of all colours,but mostly those that are fossil-fuel-based)amounted to around US$300 million in 2022.While hydrogen trade has seen relatively modest fluctuations over most of

124、the past decade,it saw a sharp increase of 71 per cent in 2022 compared to 2021,mostly reflecting an increase in the value of hydrogen imports by the Netherlands from Belgium(i.e.,one of the largest global hydrogen exporters and one of the top markets).It is likely that this increase and,more broadl

125、y,the value of hydrogen trade have been driven to a significant extent by fluctuations in the price of natural gas,which is the dominant source in current hydrogen production.Global trade in hydrogen is very small compared to that in commodities that can be produced as derivatives.For example,global

126、 imports of ammonia and methanol have registered strong growth over the past two years,reaching US$17.5 billion and US$14.1 billion in 2022(see Figure 9).As described above,the expansion of green hydrogen production is expected to lead to an increase in hydrogen trade from the current low levels.300

127、25020015010050 018,00016,00014,000 12,00010,0008,0006,0004,0002,00002012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20222012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022US$millionUS$millionHydrogenAmmoniaMethanolFIGURE 9Global imports in hydrogen and derivatives(ammonia and methanol)Source:WT

128、O Secretariat Analytical Database based on data originally sourced from WTO Integrated Database,UN Comtrade and Trade Data Monitor.Note:Trade data do not allow for the differentiation of hydrogen based on the energy used in production.The leading importers ofhydrogen are the United Statesand the Net

129、herlands and thetwo largest exporters areCanada and Belgium.Trade in hydrogen is currently concentrated in a few economies.In value terms,the United States and the Netherlands are the leading importers of hydrogen,accounting each for around a third of global hydrogen imports in 2021,while the top 10

130、 import markets represented close to 90 per cent of global hydrogen trade.In particular,imports of hydrogen amounted to US$56.8 million(142 million m3 in volume terms)in the United States,and to US$52 million (167 million m3)in the Netherlands.The two largest exporters of hydrogen are Canada and Bel

131、gium,which are the dominant suppliers for the two top markets,the United States and the Netherlands,respectively.Bilateral trade in hydrogen is largely regional(see Table 2).ImporterUS$millionSuppliers(percentage share in import market)United States56.8Canada(99),France(0),New Zealand(0)Netherlands5

132、2.3Belgium(96),Germany(3),Hungary(0)Singapore18.2Chinese Taipei(85),United States(13),Malaysia(1)Germany5.9Netherlands(65),France(19),Belgium(6)Canada4.1United States(96),France(3),Japan(0)France4.1Germany(36),Netherlands(36),Belgium(13)Mexico3.6United States(100)United Kingdom3.1Netherlands(88),Fra

133、nce(4),Germany(2)Austria2.9Germany(76),Slovak Republic(20),Switzerland(1)Malaysia2.4United States(53),Chinese Taipei(19),China(17)Czech Republic2.4Poland(86),Slovak Republic(8),Hungary(1)Ireland2.3United Kingdom(56),Netherlands(43),United States(0)Belgium2.0Netherlands(79),Germany(19),France(0)Switz

134、erland1.1European Union(96),Qatar(3),United Kingdom(0)Poland1.0Czech Republic(63),Germany(20),Slovak Republic(4)INTERNATIONAL TRADE AND GREEN HYDROGEN 21Note:The HS subheading code for hydrogen(280410)does not distinguish between gaseous and liquid hydrogen,and trade statistics do not readily shed l

135、ight on the mode of transport,e.g.,pipelines or ships.TABLE 2Top import markets for hydrogen and top three suppliers,2021Source:WTO Secretariat Analytical Database based on data originally sourced from the WTO Integrated Database,UN Comtrade and the Trade Data Monitor.Ammonia is produced by combinin

136、g hydrogen with nitrogen extracted from ambient air.Ammonia is used in nitrogen fertilizer production and other applications such as refrigeration,mining,pharmaceuticals,water treatment,plastics and fibres,and abatement or removal of nitrogen oxides.Ammonia can also act as an energy carrier for hydr

137、ogen,as it has the advantage that it requires less cooling to be liquefied,has a higher volumetric energy density than hydrogen,and can rely to an extent on established transport and storage infrastructures.Ammonia that is produced from green hydrogen is expected to dominate new installed capacity a

138、dditions for ammonia production after 2025 and could become the main commodity for transporting renewable energy between continents(IRENA and AEA,2022).The current trade landscape for ammonia looks more global and less regionalized compared to hydrogen,reflecting its importance as a global commodity

139、.India was the top destination market for ammonia in 2021,followed by the United States and Morocco.The top five suppliers for ammonia in 2021 were Trinidad and Tobago,Russia,Indonesia,the Kingdom of Saudi Arabia and Algeria(Table 3).ImporterUS$millionSuppliers(percentage share in import market)Indi

140、a1,577.5Saudi Arabia,Kingdom of(23),Qatar(22),Ukraine(13)United States1,352.2Canada(48),Trinidad and Tobago(47),Algeria(1)Morocco769.6Russian Federation(50),Trinidad and Tobago(36),Algeria(6)Korea,Republic of746.7Indonesia(40),Saudi Arabia,Kingdom of(19),Trinidad and Tobago(12)Belgium521.0Russian Fe

141、deration(33),Trinidad and Tobago(24),Algeria(20)Trkiye453.1Russian Federation(60),Libya(8),Algeria(8)China416.3Indonesia(45),Saudi Arabia,Kingdom of(15),Malaysia(13)Norway368.6Russian Federation(66),Trinidad and Tobago(10),United Kingdom(7)Chinese Taipei363.3Indonesia(43),Saudi Arabia,Kingdom of(25)

142、,Iran(13)France340.5Trinidad and Tobago(38),Algeria(14),Germany(13)Thailand248.4Malaysia(60),Australia(21),Indonesia(12)Spain241.5Algeria(80),Russian Federation(17),Portugal(1)Brazil230.6Trinidad and Tobago(97),Algeria(1),Colombia(1)Germany229.1Netherlands(45),Russian Federation(19),Belgium(12)Chile

143、215.0Trinidad and Tobago(44),United States of America(26),Brazil(13)TABLE 3Top import markets for ammonia and top three suppliers,2021Source:WTO Secretariat Analytical Database based on data originally sourced from the WTO Integrated Database,UN Comtrade and the Trade Data Monitor.Methanol is a key

144、product in the chemical industry used for producing other chemicals such as formaldehyde,acetic acid and plastics.Renewable methanol can be produced using different routes,including through a catalytic reaction between CO2 and green hydrogen.Renewable methanol could play a larger role in decarbonizi

145、ng certain sectors where options are currently limited particularly as a feedstock,or material input to a production process,in the chemical industry or as a fuel in maritime transport(IRENA,2021).China is the top market by some distance for methanol,accounting for a quarter(25 per cent)of global me

146、thanol imports.Other major import markets,such as India,the Netherlands,the United States,the Republic of Korea and Japan,are similar in size and accounted for 5-7 per cent of global imports in 2021.The main suppliers of methanol are producers of natural gas,such as Trinidad and Tobago,the Kingdom o

147、f Saudi Arabia,Oman,the United Arab Emirates,the United States and Russia(Table 4).ImporterUS$millionSuppliers(percentage share in import market)China3,367.0United Arab Emirates(39),Oman(25),Saudi Arabia,Kingdom of(11)India996.1Saudi Arabia,Kingdom of(31),Qatar(19),Oman(15)Netherlands929.7Trinidad a

148、nd Tobago(20),Equatorial Guinea(19),United States(13)United States863.4Trinidad and Tobago(55),Canada(20),Equatorial Guinea(10)Korea,Republic of791.7United States of America(38),Trinidad and Tobago(25),Oman(16)Japan689.0Saudi Arabia,Kingdom of(50),Trinidad and Tobago(14),United States(14)Germany592.

149、3Netherlands(33),Belgium(18),Norway(10)Chinese Taipei590.1Oman(25),Saudi Arabia,Kingdom of(21),United States(15)Brazil558.7Chile(39),Trinidad and Tobago(38),Venezuela,Bolivarian Republic of(13)Indonesia392.1Malaysia(38),Oman(19),Saudi Arabia,Kingdom of(14)Belgium380.3Trinidad and Tobago(41),Netherla

150、nds(30),United States(16)Thailand320.7Saudi Arabia,Kingdom of(42),Malaysia(18),Bahrain,Kingdom of(17)Poland262.0Russian Federation(67),Germany(13),Finland(7)Singapore252.0Saudi Arabia,Kingdom of(47),Malaysia(33),Oman(12)Trkiye235.2Egypt(65),Azerbaijan(24),Saudi Arabia,Kingdom of(4)TABLE 4Top import

151、markets for methanol and top three suppliers,2021Source:WTO Secretariat Analytical Database based on data originally sourced from the WTO Integrated Database,UN Comtrade and the Trade Data Monitor.INTERNATIONAL TRADE AND GREEN HYDROGEN 23ExportersA key technology for the production of green hydrogen

152、 is electrolysis,in which an electrolyser uses electricity from renewable energy sources to split water into hydrogen and oxygen.As electrolysers can currently account for 30-40 per cent of the final cost of hydrogen production,creating scale economies in electrolyser manufacturing and enhancing the

153、 performance of electrolysers will be essential to achieve cost competitiveness of clean hydrogen(IRENA,2022).Global electrolyser manufacturing capacity currently stands at around 19 GW per year and is expected to reach 100 GW by 2030 based on announced projects.China currently accounts for around 4

154、0 per cent of global manufacturing capacity,and a number of economies,including India,the European Union and the United States,have launched policies aimed at supporting manufacturing capacity for electrolysers(IEA,2023;Rystad Energy,2023).While electrolysers are already widely used in the chlor-alk

155、aline industry,installed electrolyser capacity dedicated to the production of hydrogen could reach almost 3 GW by the end of 2023,a more than four-fold increase compared to 2022(IEA,2023).Further strong growth will be required to reach an installed capacity of more than 5,700 GW by 2050 to achieve a

156、 scenario limiting global warming to not more than 1.5C,in which 14 per cent of final energy demand is supplied by hydrogen or its derivatives(IRENA,2023a).2.2 Electrolysers as a key technology for the green hydrogen supply chainFIGURE 10:Top five importers and exporters of electrolysers (US$million

157、)Source:WTO Secretariat Analytical Database based on data originally sourced from the WTO Integrated Database,UN Comtrade and the Trade Data Monitor.2020ChinaJapanGermany20212022Note:Electrolysers are included under Harmonized System(HS)subheading 854330:Machines and apparatus for electroplating,ele

158、ctrolysis or electrophoresis.It should be noted that the reported values represent trade in electrolysers and other machines for electroplating and electrophoresis.Between 2022 and end-2023,installed electrolyser capacity for producing hydrogen could more than quadruple to reach almost 3 GW.3 GW4003

159、002001000Importers4003002001000ChinaUnited StatesMalaysiaIndonesiaChinese TaipeiUnited StatesRepublic of KoreaInternational trade in electrolysers will play a key role in fostering innovation,scale economies and cost reductions,and in bringing electrolysers from where they are manufactured to where

160、they are installed to produce clean hydrogen.Global imports of electrolysers,together with certain other machines included under the same HS subheading,amounted to around US$1.62 billion in 2022,following two years of strong growth a rise of 32 per cent in 2021 and of 9 per cent in 2022.Key drivers

161、of this growth were China,Indonesia,and the United States on the import side,and China,the United States and the Republic of Korea on the export side.China was both the largest importer and supplier of electrolysers in 2022.The top five importers of electrolysers accounted for 64 per cent of global

162、imports in 2022,while the top five suppliers accounted for more than three-quarters(76 per cent)of global imports in 2022 (see Figure 10 and Table 5).Note:Electrolysers are included under Harmonized System(HS)subheading 854330:Machines and apparatus for electroplating,electrolysis or electrophoresis

163、.It should be noted that the reported values represent trade in electrolysers and other machines for electroplating and electrophoresis.ImporterUS$millionSuppliers(percentage share in import market)China384.9Japan(36),Korea,Republic of(20),Chinese Taipei(12)Indonesia226.8China(89),Japan(7),Singapore

164、(1)United States191.6China(47),Japan(17),Germany(9)Chinese Taipei121.5United States(37),Japan(27),China(14)Malaysia114.5Korea,Republic of(52),Japan(26),China(12)Viet Nam(2021)52.2China(37),Japan(25),Korea,Republic of(16)India49.6Japan(36),China(30),Germany(21)Democratic Republic of the Congo(2021)45

165、.8China(97),India(2),United States(0)Japan40.6China(46),Korea,Republic of(31),Malaysia(9)Korea,Republic of33.8Japan(55),Germany(15),China(15)Hong Kong,China30.3China(97),Chinese Taipei(2),United Kingdom(0)Trkiye26.4China(31),Germany(27),Italy(24)Brazil24.8Italy(35),Netherlands(23),Portugal(17)Canada

166、22.9Japan(29),China(25),United States(20)Australia22.3United States(40),China(37),Japan(6)TABLE 5Top import markets for electrolysers and top three suppliers,2022Source:WTO Secretariat Analytical Database based on data originally sourced from the WTO Integrated Database,UN Comtrade and the Trade Dat

167、a Monitor.INTERNATIONAL TRADE AND GREEN HYDROGEN 25TRADE-RELATED POLICIES ALONG THE HYDROGEN VALUE CHAIN3The deployment of green hydrogen is still at an early stage.As with other clean energy technologies,progress must be tracked effectively in order to assess whether hydrogen markets are evolving w

168、ith a pace and in a direction allowing them to play their role in enhancing energy security and facilitating the clean energy transition(IEA,2022).Open,predictable and coherent trade policies will play an important role in fostering and shaping the development of green hydrogen supply chains.Tariffs

169、 and non-tariff measures such as technical regulations and conformity assessment procedures,subsidies,antidumping and countervailing duties,trade-related investment measures,government procurement,and policies on services and intellectual property affect trade along the supply chain.The WTO provides

170、 a rules-based framework for trade-related policies,including on green hydrogen,and a forum for dialogue and experience-sharing.It enhances stability and predictability of policy frameworks through different transparency and monitoring mechanisms such as notification requirements under different WTO

171、 agreements and periodic reviews of WTO members trade policies.A review of environment-related notifications included in the WTO Environmental Database reveals that WTO members notified 44 hydrogen-related policies between 2009 and 2021.Most hydrogen-related policies take the form of support measure

172、s,such as INTERNATIONAL TRADE AND GREEN HYDROGEN 27At present more than 30countries around the globehave national strategies for low-carbon hydrogen.FIGURE 11:Hydrogen-related measures in members notifications by WTO agreementSource:WTO Environmental Database.grants,loans or tax concessions,included

173、 in 34 notifications under the Agreement on Subsidies and Countervailing Measures(SCM),while 10 notifications on technical regulations were made under the Agreement on Technical Barriers to Trade(TBT)(see Figure 11).1 Recent support measures target the technology and production of renewable energy a

174、nd hydrogen as well as of hydrogen fuel cells.Examples of support programmes notified under the rules of the SCM Agreement in 2021 include a Renewable Energy and Hydrogen Jobs Fund(Queensland,Australia),a subsidy fund for the hydrogen fuel cell industry(Jiangsu Province,China),support for hydrogen f

175、uel cell vehicle distribution(Republic of Korea)and the Massachusetts Clean Energy Center Investments in the Advancement of Technology(United States).2 Examples of policies notified under the TBT Agreement include Chinas national standard on energy consumption and energy efficiency for hydrogen prod

176、uction through water electrolysis,and technical regulations by the Kingdom of Saudi Arabia and the United Arab Emirates on hydrogen and fuel cell vehicles.3At present more than 30 countries around the globe have national strategies for low-carbon hydrogen.4 For example,in 2023 the European Union ado

177、pted two delegated acts defining renewable hydrogen,and it has implemented funding mechanisms via the“Important Projects of Common European Interest”5 and the hydrogen auction from the European Hydrogen Bank.The United States has important incentives for low-carbon hydrogen in its Inflation Reductio

178、n Act.In 2023,India adopted its National Green Hydrogen Mission to encourage electrolyser manufacturing.Several African countries,including Namibia and South Africa,have established national hydrogen strategies.Japan has an ambitious national strategy to locally produce and import low-carbon hydroge

179、n,and China continues to lead in electrolyser capacity additions.Between 2009 and 2021,37 policies and measures aimed at developing hydrogen projects were mentioned in the trade policy reviews of several WTO members,including Argentinas temporary import tariff reduction on a quota of 6,000 hybrid,el

180、ectric and hydrogen fuel cell motor vehicles,New Zealands Hydrogen Vision,the United Arab Emirates Hydrogen Leadership Roadmap,and support programmes of different members.10864202009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Subsidies and Countervailing MeasuresTechnical Barriers to

181、 TradeNumber of measuresFIGURE 12:Average applied most-favoured-nation tariffs(in parentheses)and number of members by tariff range(bars)Source:WTO Integrated Database.Trade costs are an important determinant of the viability of supplying green hydrogen across borders for end use,such as in industry

182、 and transport.The average applied tariff rate on hydrogen(green and other forms)is around 5.3 per cent in 153 WTO members,higher than for ammonia(4.4 per cent)and methanol(5.0 per cent).Some 39 members apply rates between 5 and 10 per cent on hydrogen imports,while seven members apply rates higher

183、than 10 per cent(see Figure 12).In addition to tariffs,hydrogen and commodities produced with hydrogen,such as ammonia or direct-reduced iron,may be subject to taxes based on their carbon content.For example,under the European Unions Carbon Border Adjustment Mechanism(CBAM),importers of hydrogen,amm

184、onia,steel are required to report the greenhouse gas(GHG)emissions caused in their production,and,starting in 2026,may face an adjustment to align the price of embedded carbon with the carbon price on the EU market.This means that green hydrogen,and ammonia or iron produced with green hydrogen,may f

185、ace lower costs based on their carbon content.Open trade in products along the supply chain can foster access to technology,lower costs and promote green hydrogen production.Upstream in the chain,promoting goods and services related to renewable energy production can help to reduce the costs of ener

186、gy used in the production of green hydrogen.For example,the significant fall in the costs of solar PV energy described above was supported by an open and transparent trade regime which has enabled the emergence of a globally integrated solar PV market(WTO and IRENA,2021).3.1 Tariffs and other taxesN

187、ote:Tariffs for 153 reporters,with the most recent year selected between 2020 and 2023.The European Union counts as a single member.38Hydrogen and derivativesHydrogen(5.3%)Ammonia(4.4%)Methanol(5.0%)Electrolysers(4.5%)Compressors(6.7%)Generators(4.2%)Direct reduced iron(4.1%)Fuel cells(9.8%)Aluminiu

188、m containers(8.9%)Steel containers(8.6%)Pipelines(5.5%)Products related to transport of hydrogenProducts along the value chainDuty free0 and 5 and 10 and 1547536325536518322348697255476568583942545339283335202524343932354383374332922833456333031229INTERNATIONAL TRADE AND GREEN HYDROGEN 29In order to

189、 increase global trade in green hydrogen,an effective system will need to be developed to ensure the safety,performance and sustainability attributes of the products and services to be traded.Quality infrastructure(QI)is the national system of organizations,policies,legal frameworks and practices re

190、quired to assure the quality,safety and sustainability of products and services.QI comprises metrology(i.e.,the scientific study of measurement),standardization,accreditation and conformity assessment,including testing,certification and inspection.Having a robust and internationally harmonized QI sy

191、stem creates the technical basis for the development of the green hydrogen sector,as it helps to reduce the safety,financial and reputational risks in the sector,while supporting the achievement of the intended positive sustainability impacts of investments.Quality infrastructure to ensure sustainab

192、ility Exporters may need to demonstrate the trustworthiness of their own processes and carbon measurements,as well as of the underlying carbon quantification systems.For instance,an accredited third party may be required to verify the carbon content of hydrogen before it is imported to an economy th

193、at applies a trade-related climate policy.In this situation,the importing economy applying the policy will need to be able to trust the technical competency of the bodies and systems underpinning the carbon quantification systems in the exporting country(WTO,2022a).As indicated in Section 1.1,the gl

194、obal production of hydrogen is currently almost exclusively derived from fossil fuels without associated carbon capture and storage,meaning that it is a major net contributor to climate change,rather than a vector for decarbonization.This fossil-fuel-based hydrogen is predominantly utilized in indus

195、try,for example for oil refining,fertilizer production,and downstream chemical processes.Arriving at a net-zero world will necessitate a transition away from fossil-based hydrogen to a green hydrogen supply,as green hydrogen could offer a solution to decarbonize certain applications including those

196、in which fossil fuel-based hydrogen is used today in heavy industry,shipping,aviation and seasonal storage,among others.Green hydrogen could thus act as the link between renewable electricity generation and hard-to-abate sectors or applications(IRENA,2022a).At present,there is a wide variety of meth

197、ods to produce hydrogen,which differ according to their production processes and the GHG emissions released during production.The three most commonly used options are“grey hydrogen”(fossil-fuel-based),“blue hydrogen”(fossil-fuel-based production with carbon capture,utilization and storage)and“green

198、hydrogen”(renewables-based)(IRENA,2019).Other colours of hydrogen also exist,such as“turquoise hydrogen”(produced through a process called methane pyrolysis)and“pink hydrogen”(produced through electrolysis of water,but with the electrolysis powered by nuclear power instead of renewables).3.2 Quality

199、 infrastructure standards,certification and beyondThere might be scope to further reduce tariffs on products along the green hydrogen supply chain.Besides renewable energy,electrolysers are another key cost factor for green hydrogen.The average tariff on electrolysers is relatively low,at 4.5 per ce

200、nt,and more than 60 WTO members provide duty-free access to their markets.However,in 43 members the applied tariff rate is higher than 5 per cent.For compressors,which are used to compress hydrogen prior or during transport,average tariffs are higher,at 6.7 per cent,and 43 WTO members apply tariffs

201、of more than 10 per cent.Tariffs are highest on other primary cells and batteries,which include hydrogen fuel cells;the average rate is 9.8 per cent,and more than 60 WTO members apply rates higher than 10 per cent.Since it is not possible to“see”the carbon content or the process used for producing h

202、ydrogen,the role of standards,technical regulations and verification procedures will be crucial for the establishment of a well-functioning international green hydrogen market.As the world seeks to transition to the production of predominantly green hydrogen over the next few decades,the development

203、 of a robust system of standards,technical regulations and certification along the green hydrogen supply chain,including for derivatives such as ammonia,will be necessary to guarantee the environmental integrity of green hydrogen production and provide information on the production process and emiss

204、ions footprint along the value chain.6 Actors involved in the hydrogen market need a stable regulatory framework.However,in this nascent industry,maintaining a dynamic regulatory approach is important to encourage investments(IEA,2022).Given the wide variety of production methods that can be used to

205、 produce hydrogen,international standards establishing agreed methodologies to evaluate its environmental attributes markedly its carbon footprint will play an important role in accelerating the uptake of green hydrogen production facilities and in avoiding obstacles to trade in green hydrogen.Ideal

206、ly,approaches for measuring the carbon footprint of hydrogen should be based on international standards agreed by consensus.The International Organization for Standardization(ISO)is developing an international standard,based on previous work from the International Partnership for Hydrogen and Fuel C

207、ells in the Economy(IPHE),to measure the carbon content of hydrogen with a life cycle approach(IEA,IRENA and UN High Level Champions,2023).This new standard,ISO 19870,7 will provide approaches that may be applied to determine the greenhouse gas emissions associated with the production,conditioning a

208、nd transportation of hydrogen to where it is consumed,in line with ISO 14067(i.e.,“Greenhouse gases;Carbon footprint of products:Requirements and guidelines for quantification”).8Quality infrastructure to ensure safety and performance The key QI services that support the green hydrogen sector are as

209、 follows:Metrology Standards and methods related to metrology should allow traceable validation and performance evaluation of gas quality,as well as methods for evaluating the uncertainty of the measurements applied along the entire green hydrogen value chain.Economies with advanced metrological sys

210、tems already have most of the services necessary to cater to the green hydrogen industry.However,they need to develop and provide tailored services,such as measurement of very high pressures and achieving small measurement uncertainties,which are required for tests of equipment durability and for th

211、e detection of leaks during the generation,distribution and storage of hydrogen.Technical standards There is a need for standards in the areas of the distribution,storage and transfer of hydrogen to the end-user.More QI insights(especially standards)are required with regard to transport of hydrogen

212、through existing gas pipelines.In the context of IRENAs ongoing project on quality infrastructure for green hydrogen,experts noted that there is a serious threat of hydrogen damage,particularly for older gas pipelines with corrosion and other mechanical damages,with long-term blended or 100 per cent

213、 hydrogen service.Experts engaged in the project suggest promoting the implementation of standards for the design and construction of hydrogen pipelines(such as the ASME B31.12 Standard on Hydrogen Piping and Pipelines)to guard against hydrogen embrittlement by increasing the wall thickness of INTER

214、NATIONAL TRADE IN GREEN HYDROGEN 31INTERNATIONAL TRADE AND GREEN HYDROGEN 31pipelines.9 There is also a strong call by pipeline experts to accelerate the development and standardization of high-pressure gaseous hydrogen-charging test methods and codes for investigation of the hydrogen embrittlement

215、susceptibility of pipeline steels.Certification and accreditation At the international level,the International Electrotechnical Commission(IEC)has established two certification schemes relevant to green hydrogen:the IEC System for Certification to Standards Relating to Equipment for Use in Renewable

216、 Energy Applications(IECRE),which is concerned with renewable energy technologies;and the International Electrotechnical Commission System for Certification to Standards Relating to Equipment for Use in Explosive Atmospheres(IECEx).Economies with advanced QI systems have internationally recognized a

217、ccreditation bodies,which must expand their accreditation scope to fulfil the newly developing requirements.Examples include new certification schemes that have been specifically established for the green hydrogen sector.Furthermore,these bodies should invest in enhancing the technical competence of

218、 the assessors to adequately assess the compliance of service providers to fulfil these new requirements,such as laboratories performing specific safety tests based on new standards for hydrogen storage infrastructure.A further look into key QI services that support the green hydrogen sector can be

219、found in the Annex.Principles to develop a quality infrastructure aligned with trade policiesAs governments around the world start regulating hydrogen production and consumption,WTO disciplines can provide useful guidance for this nascent industry.First,under the TBT Agreement,technical regulations

220、shall not create unnecessary obstacles to international trade.Moreover,the WTO TBT Agreement strongly encourages the use of relevant international standards when enacting technical regulations.Technical regulations10 in accordance with relevant international standards are,a priori,considered not to

221、create unnecessary obstacles to international trade under the TBT Agreement.In and of itself,this presumption of conformity can be a strong incentive to use international standards when regulating green hydrogen production.11The way international standards for green hydrogen production are set will

222、have a decisive impact on the extent to which those standards are actually used.In this regard,the WTO TBT Committee has developed six“Principles for the Development of International Standards,Guides and Recommendations”.12 The guidance provided through these“Six Principles”could play a significant

223、role in the development of relevant international standards relating to green hydrogen production.For instance,observing these principles would ensure,among others,that relevant information could be made available to all interested parties,that sufficient opportunities for written comments could be

224、provided,that conflicting international standards would not be adopted,and,importantly,that constraints facing developing economies could be considered.13A recent report by IRENA and RMI analysed existing voluntary and mandatory schemes to measure and/or certify the carbon intensity of hydrogen(IREN

225、A and RMI,2023).The analysis concluded that the current landscape of schemes is still inadequate to enable international trade,as existing approaches vary substantially in terms of emissions thresholds,boundaries of analysis and acceptable production pathways and energy sources,among others.But what

226、 is to be done in the absence of convergence around an international standard?Such situations may arise,among other reasons,because countries have different levels of development and national capabilities to implement standards,or because a relevant international standard does not exist for an emerg

227、ing technology,like green hydrogen.In such situations,dialogue and cooperation to avoid unnecessary negative trade impacts will be particularly important.Regulatory cooperation between WTO members may be an effective means of building trust between regulators,as it allows them to learn about each ot

228、hers systems.Sharing experiences in regional and multilateral settings can help to bring approaches closer,and eventually enable them to converge through the development of international guidance(WTO,2022a).Given the wide variety of verification procedures that members may adopt to ensure compliance

229、 with trade-related climate change measures,convergence around methodologies is crucial to reduce trade barriers.WTO disciplines promote harmonization based on relevant guides or recommendations issued by international standardizing bodies as a means of avoiding unnecessary obstacles to trade.This i

230、s important because harmonized procedures minimize differences in terms of the verifiers competences and verification approaches,which increases the overall quality of verification.Moreover,the TBT Agreement promotes dialogue by encouraging members to accept,whenever possible,the results of conformi

231、ty assessment procedures performed by other members,even when those procedures differ from their own.14 The TBT Committee has provided guidance in this area by developing an“Indicative List of Approaches to Facilitate the Acceptance of the Results of Conformity Assessment”15 covering a range of appr

232、oaches that governments might choose to facilitate recognition.16 WTO disciplines also govern the type of conformity assessment procedure that members may choose to ensure compliance with technical regulations or standards.For example,the selected conformity assessment procedure should not be strict

233、er,or be applied more strictly,than is necessary to give the importing member adequate confidence that products conform with the applicable technical regulations or standards.17 As it is generally not possible to determine how hydrogen is produced merely by looking at the product,communication of th

234、is information to authorities and along the value chain is essential.Such communication might take the form either of a physical or of a digital label or document,such as a declaration or claim at the end of the verification process,conveying that the conformity assessment has been completed success

235、fully.One key challenge is ensuring that labelling requirements are clear and credible and achieve the desired policy objectives without creating unnecessary obstacles to international trade.The information conveyed to consumers through labels should not create consumer confusion.The design of the l

236、abels should ensure that any claims they make are trustworthy.Labelling measures are covered by the definitions of both“standards”and“technical regulations”in the TBT Agreement.18 As such,labelling measures should be based on international guidance where it exists.They should not be discriminatory,s

237、hould not create unnecessary barriers to trade,and may need to be notified to the WTO.Ultimately,well-designed labelling measures could also facilitate flows of green hydrogen and its derivatives.INTERNATIONAL TRADE AND GREEN HYDROGEN 33As governments around theworld start regulating hydrogenproduct

238、ion and consumption,WTO disciplines can provideuseful guidance.3.3 SubsidiesCurrently,green hydrogen is more costly to produce than fossil-based hydrogen without carbon capture and storage.IRENA estimates that to achieve a net-zero pathway by 2050 with associated midstream and end-use investments,av

239、erage total annual investments of US$136 billion will be necessary across the hydrogen value chain between 2023 and 2050.Therefore,although investment of US$160 billion in projects has been announced,a significant investment gap of US$790 billion,which should be filled by 2030,remains across the hyd

240、rogen value chain(IRENA,2023a).Phasing out fossil fuel subsidies and redirecting funding towards renewable energy and green hydrogen production has a strong potential to stimulate this transition.Phasing out fossil fuel subsidiesUnderpricing fossil fuels undermines domestic and global environmental

241、objectives.In addition,it is a highly inefficient policy for helping low-income households,and has a sizeable fiscal cost for governments.Government support for fossil fuels almost doubled to US$697.2 billion in 2021,up from US$362.4 billion in 2020(OECD and IEA,2022).The energy crisis only strength

242、ened this trend in 2022.Increased fossil fuel use contributes not only to climate change but also exacerbates air,water and plastic pollution,worsens land degradation,and locks economies into high-carbon production cycles.Fossil fuel subsidies generate inefficiencies in the production and use of ene

243、rgy economy-wide,and skew long-term capital investment towards fossil fuel producers or fossil-fuel-intensive industries,thus enhancing the risk of locking economies into using high-carbon infrastructure and assets(OECD and IEA,2021).The International Institute for Sustainable Development(IISD)estim

244、ates that if a set of 32 major developed,emerging,and developing economies reformed fossil fuel subsidies by 2025,this would reduce CO2 emissions by an average of 6 per cent by 2030,and in the case of some economies,by up to 35 per cent.The reinvestment of just a third of the savings coming from suc

245、h reform into energy efficiency and renewable energy(a“subsidy swap”)would reduce CO2 emissions by an additional 3 per cent by 2030(IISD,2022).By phasing out fossil fuel subsidies,policymakers can specifically help to close the economic gap with green hydrogen,while unveiling the real price of fossi

246、l fuels(IRENA,2020b).The phasing-out of fossil fuel subsidies also affects the carbon price(i.e.,the cost applied to carbon emissions to incentivize reduction).Because fossil fuel subsidies essentially function as a negative carbon price,removing these subsidies results in an increase in the price o

247、f carbon-based fuels.Potential reform of fossil fuel subsidies therefore enables the incorporation of costs of environmental externalities that are not reflected under the subsidized prices,and thereby incentivizes a decreased use of fossil fuels(WTO,2022b).This,in turn,could increase the competitiv

248、eness of green alternatives,such as green hydrogen and its derivative green commodities.Boosting support for green hydrogen and its derivativesAchieving the scale-up and associated improvement in cost competitiveness of green hydrogen and its derivatives requires significant investment.Funding of th

249、e economic gap is required until a break-even point is reached,i.e.,an investment to offset the initially higher costs of hydrogen and of hydrogen equipment compared to alternatives(Hydrogen Council,2020).A growing number of economies use subsidies either to encourage producers to invent,adopt and d

250、eploy low-carbon technologies,or to encourage consumers to purchase environmentally sustainable products and services.If they are well-targeted and non-discriminatory,environmental subsidies can play a positive role in scaling up new technologies and making climate-friendly products more affordable(

251、WTO,2022b).In other words,subsidies should aim to boost innovation where support is most needed,e.g.,for cleantech startups,and should not place imported products at a competitive disadvantage vis-vis similar products from another origin in the absence of a legitimate reason for the differentiation.

252、Domestic support schemes used for solar photovoltaic and wind power have ensured cost competitiveness with fossil fuel alternatives.For example,R&D subsidies can lower costs and improve the performance of low-carbon technologies,as well as foster innovation in environmental technologies.Subsidies ca

253、n also be given to producers of renewable energy.Feed-in tariffs and contracts for differences,for instance,allow renewable energy producers to receive a guaranteed price for each unit of electricity generated,guaranteed grid access and long-term contracts with electric grid utilities.Finally,subsid

254、ies can be provided to consumers to encourage the adoption of low-carbon products and technologies,for example LED lighting or electric vehicles(WTO,2022b).Similarly,governmental support policies can help sustain growth in electrolyser capacity and green hydrogen production by promoting cost efficie

255、ncies and narrowing the cost differential between the costs of producing green and fossil-based hydrogen(IRENA,2020b),such as in the following ways:Setting targets for electrolyser capacity,similar to those for renewable energy,can signal economies commitments to the private sector,thereby attractin

256、g more investment.Utilizing financial instruments,such as government loans,equity investment,risk mitigation tools,credit guarantees,etc.,can strengthen the business case for the installation of electrolysers.Setting ambitious targets for renewable energy capacity can ensure a steady supply of renew

257、able electricity,catering to both the direct electrification needs and hydrogen production as the market for green hydrogen expands.Increasing support for R&D can lead to improvements in electrolyser efficiency and the development of standardized,cost-effective designs for large-scale electrolysers.

258、Mitigating country-related investment risks can contribute to reducing the cost of production of green hydrogen by reducing the cost of capital.Modulating the tax structure,especially on electricity consumed by electrolysers,can make green hydrogen production more cost-effective.In addition,revising

259、 corporate,business and sales taxes related to green hydrogen can improve revenues and the rate of return on projects.INTERNATIONAL TRADE AND GREEN HYDROGEN 35Two new environmental initiatives at the WTO specifically address the environmental effects and potential reform of subsidies.In the working

260、group on subsidies of the Trade and Environmental Sustainability Structured Discussions(TESSD),participating WTO members have been discussing the environmental and trade effects of subsidies,as well as how to enhance transparency.Participating members have put a focus on sharing their experiences an

261、d considerations regarding the design of subsidies related to the transition to a low-carbon economy,including support measures to foster investment in clean energy and hydrogen.The Fossil Fuel Subsidy Reform(FFSR)initiative builds upon the comprehensive benefits spanning trade,economy,society and e

262、nvironment of addressing fossil fuel subsidies and reallocating government funds towards green,climate-resilient projects.Discussions have highlighted the need to enhance the transparency of fossil fuel subsidies and to consider the developmental and social issues involved in their reform.Box 1:WTO

263、environmental initiativesSimilar support measures can be tailored to address challenges related to transport and storage of green hydrogen(e.g.,by financing infrastructure development),to use green hydrogen in industrial processes(e.g.,by making available loans and specialized funds to render invest

264、ment in green pathways financially more attractive),or to use green hydrogen to produce synthetic jet fuels and for maritime shipping(e.g.,by providing financial mechanisms or fiscal adjustments to minimize the cost gap between fossil fuels and environmentally-friendly alternatives)(IRENA,2020b).The

265、se trends are already visible.Support for low-carbon hydrogen has quadrupled over the last two years to more than US$280 billion.The United States leads the list,with support of US$137 billion expected to flow to selected projects over the next 10 years,making clean hydrogen cheaper for the whole wo

266、rld(Bhashyam,2023).Importance of transparency,dialogue and cooperationSome types of support measures can create trade tensions,such as those that attribute exclusive rights to the use of research output by domestic firms or that are provided to shield domestic producers from foreign competition,or s

267、trategically for industrial policy purposes.For instance,subsidies with local content requirements can spur investment in homegrown climate-friendly infrastructure and technology,but at the same time be trade-restricting(WTO,2022b).Subsidy reforms must therefore be designed with both economic and so

268、cial considerations in mind and must prioritize a just and equitable transition.Greater transparency and a deeper understanding of the flows of subsidies are prerequisites to ensuring effective and accountable reform.This will pave the way for a careful assessment of the most environmentally harmful

269、 subsidies.In addition,enhanced multilateral cooperation and dialogue could play a positive role in preventing an inefficient race to subsidize environmentally positive,or“green”,technology,which could cause avoidable trade tensions,distort international competition and disproportionately harm small

270、er,fiscally constrained developing economies(see Box 1).Furthermore,transparency and the need for improved rules to address certain types of subsidies have long been on the agenda of various WTO bodies,such as the General Council,the Committee on Subsidies and Countervailing Measures(SCM Committee),

271、and the Committee on Agriculture(CoA).The WTO organizes technical assistance activities at both the national and regional levels,often with a specific focus on notification obligations.In collaboration with requesting members,individualized technical assistance that also addresses subsidy analysis a

272、nd design can be provided by international organizations to meet needs of developing members with capacity constraints(IMF,OECD,World Bank and WTO,2022).Enhanced multilateral cooperation and dialoguecould play a positive role in preventing an inefficient race to subsidize“green”technologyINTERNATION

273、AL TRADE AND GREEN HYDROGEN 373.4 Sustainable government procurementGovernment(public)procurement is of great economic importance,accounting for 10-15 per cent of national GDP,on average,and about 13 per cent of world GDP(around US$13 trillion per year).Government procurement is estimated to be dire

274、ctly or indirectly responsible for 15 per cent of global GHG emissions.19 According to the World Economic Forum(WEF),abating emissions from government procurement would lead to a US$4 trillion boost to the green economy and create around 3 million new jobs(WEF,2022).High coal and gas prices in 2021

275、and 2022 have affected the competitiveness of fossil fuels temporarily.The recovery from the COVID-19 crisis and the response to the global energy crisis have also provided a significant boost to clean energy investment(IEA,2023).At the same time,investment decisions are still impeded by a general u

276、ncertainty surrounding the long-term development of energy prices as well as the overall energy policy targets and supporting policies.Policies to create demand for low-emission hydrogen,including requirements in government procurement,are therefore important to boost market demand(IEA,2022).Through

277、 sustainable government procurement policies,governments can influence private-sector producers by purchasing low-carbon goods and services and can create markets for new entrants and stimulate innovative solutions to climate change problems by awarding public R&D contracts.Given the sheer volume of

278、 demand for goods and services that government procurement can represent,sustainable government procurement can create a large and stable demand for new low-carbon solutions before a commercial market is viable(WTO,2022b).Government procurement can be aligned with GHG emissions targets by introducin

279、g requirements or preferential treatments for low-carbon emissions for products and services(Australian Industry ETI,2023).While most of the technologies needed for the global energy transition are available,some of them are at earlier stages of development and need support to accelerate their rapid

280、 commercialization.Such technologies could be particularly important for developing additional green hydrogen capacity.Sustainable government procurement can accelerate the deployment of green hydrogen,of its derivatives and of related climate-friendly technologies by creating a stable demand for th

281、ose products at lower costs and reducing hydrogen uptake uncertainty(IRENA and WEF,2022).To do this,government procurement policies and practices must focus on giving a strong preference to renewable energy and green hydrogen and on spurring the use of green hydrogen in the sectors that are hardest

282、to electrify(Green Hydrogen Organisation,2022).Sustainable government procurement strategiesKey actions could include introducing minimum requirements for green products in public authorities procurement processes,introducing green material requirements in policies,such as in auctions for renewable

283、energy,and ensuring the presence of a verification and labelling system to guarantee the sustainability of the products(IRENA and WEF,2022).In doing so,governments should give a strong preference to the procurement of green hydrogen for those sectors where direct electrification with renewables is n

284、ot a viable decarbonization option.Government procurement targets could focus on the industrial use of hydrogen to provide an indicative level of future green hydrogen consumption and,therefore,of future procurement needs.For example,in Spains hydrogen strategy,the government included a 25 per cent

285、minimum contribution of green hydrogen to total hydrogen consumption in 2030 by all industries,both as a feedstock and as an energy carrier(IRENA,2022d).Another solution that governments can provide is a centralized auction scheme to promote hydrogen purchase and consumption,with the cost differenti

286、al paid for by a public body.A public body would act as central auctioneer and would sign long-term purchase agreements for electrolysers and sale agreements with industrial players.If auctions are successful in reducing the cost of green hydrogen,as has been done for solar PV and wind energy,this w

287、ould significantly improve green hydrogens business case in various industries.This kind of scheme is currently being designed in Germany under the H2Global Stiftung a foundation that promotes the national and international production and use of climate-neutral energy carriers,such as green hydrogen

288、(IRENA,2022d).Extending sustainable government procurement beyond green hydrogen and its derivatives to other green goods in the hydrogen supply chains can also have beneficial effects on driving demand.For instance,governments could institutionalize preferential purchasing of steel or other product

289、s made sustainably through the use of green hydrogen,or that require the inclusion of a higher share of those products in the overall material mix(IRENA,2020b).Since steel and chemical industries are very capital-intensive,economies of scale and low raw material and energy prices are crucial to prof

290、itability.Furthermore,given the need to experiment with different production technologies,any such investment could be too great for a single firm in the absence of clear demand for green materials or goods(IRENA,2022d).Sustainable government procurement could have a particularly large impact on the

291、 creation of a green steel market,given that steel is used to construct buildings,bridges,railways and transport fleets.A recent example is the Buy Clean California Act,which imposes a maximum acceptable global warming potential limit on selected construction materials.It targets,among other materia

292、ls,carbon emissions associated with the production of structural steel and concrete reinforcing steel(IRENA,2022d).Importance of international cooperationInternational cooperation is vital to create demand for green and low-carbon hydrogen use,particularly in priority sectors like heavy industry,mar

293、itime shipping and aviation,where competition could hinder decarbonization efforts.Coordinated demand-creating policies can send a stronger signal to mobilize investment in low-carbon and green hydrogen production,while collaboration allows actors to share experiences of establishing more secure,div

294、ersified demand for hydrogen over time.Both are crucial to achieving economies of scale and accelerating cost reductions on the supply side.Various initiatives are in place to facilitate coordination between countries and private sector stakeholders.For instance,the Mission Innovation Hydrogen Valle

295、y Platform 2.0,which showcases hydrogen valley projects(i.e.,a geographical area combining several hydrogen applications into an integrated ecosystem)20 around the world,was relaunched in May 2023.Based on extensive collection of primary data,the platform provides insights into the most ambitious hy

296、drogen valleys around the globe.If all of the 83 valleys showcased on the platform are realised,they will unlock significant demand for renewable and low-carbon hydrogen(IEA,IRENA and UN Climate Change High-Level Champions,2023).The plurilateral WTO Agreement on Government Procurement(GPA 2012),toge

297、ther with other WTO rules,can play an important role in ensuring that open government procurement markets are leveraged to support green hydrogen markets.The GPA helps governments to overcome a home bias in government procurement by ensuring that sustainable government procurement practices are non-

298、discriminatory,based on open markets,and in line with good governance practices.By opening domestic procurement markets to foreign competition,the GPA 2012 can also help governments to obtain better value for money for climate-friendly goods and services,including of hydrogen,its derivatives and rel

299、ated technologies.It can do so by increasing the number of bidders,including foreign bidders,and by facilitating access to climate-friendly technologies that may not otherwise be available in the domestic market.In particular,the Agreement allows parties to apply technical specifications aimed at pr

300、omoting natural resource conservation or protecting the environment,as well as to use the environmental characteristics of a good or service as an award criterion in evaluating tenders(WTO,2022b).The GPA parties,mindful of the importance of government procurement as a strategic tool to promote envir

301、onmental sustainability,among other things,initiated a Work Programme on Sustainable Procurement in 2014.The WTO can help by providing examples of what members are already doing in terms of government procurement,including by providing dedicated fora for policy learning and exchange,such as the Comm

302、ittee on Trade and Environment or the Committee on Government Procurement,and by providing technical assistance to those seeking to explore this option further.The WTO Secretariats technical assistance and related programmes concerning government procurement policy and the GPA can also serve as a va

303、luable tool to facilitate informal discussions on related issues among interested officials from economies around the globe.INTERNATIONAL TRADE AND GREEN HYDROGEN 39Endnotes1 The SCM Agreement requires that WTO members submit a new and full notification of all specific subsidies every three years,wi

304、th updated notifications due in the intervening years.The notification obligation extends to all specific subsidies related to goods,in any sector,and provided by any level of government(i.e.,national,regional,state/provincial or local).Under the TBT Agreement,WTO members are obliged to notify draft

305、 technical regulations and conformity assessment procedures that are not in accordance with relevant international standards or recommendations issued by international standardizing bodies(or such standards and recommendations do not exist)and to indicate whether the technical regulation or conformi

306、ty assessment procedure may have a significant impact on trade.2 The WTO official document numbers for these respective notifications are G/SCM/N/372/AUS,G/SCM/N/372/USA,G/SCM/N/372/CHN and G/SCM/N/372/KOR.Official documents can be viewed at https:/docs.wto.org/.3 The WTO official document numbers f

307、or these respective notifications are G/TBT/N/SAU/1225,G/TBT/N/ARE/461,G/TBT/N/CHN/1131.Official documents can be viewed at https:/docs.wto.org/.4 See Policies for green hydrogen(irena.org).5 See https:/commission.europa.eu/projects/hydrogen-projects-within-framework-ipceis_en.6 For a discussion on

308、the role of standards and verification methods in the area of climate-related policies,see WTO(2022a).7 See https:/www.iso.org/standard/65628.html.8 See https:/www.iso.org/standard/71206.html.9 See https:/www.asme.org/codes-standards/find-codes-standards/b31-12-hydrogen-piping-pipelines/2019/drm-ena

309、bled-pdf.10 TBT Agreement,Article 2.4(“Preparation,Adoption and Application of Technical Regulations by Central Government Bodies”).See https:/www.wto.org/english/docs_e/legal_e/17-tbt_e.htm.11 TBT Agreement,Article 2.5(“Preparation,Adoption and Application of Technical Regulations by Central Govern

310、ment Bodies”).See https:/www.wto.org/english/docs_e/legal_e/17-tbt_e.htm.12 See https:/www.wto.org/english/tratop_e/tbt_e/principles_standards_tbt_e.htm.13 Essentially,the“Six Principles”are intended to help international standards better facilitate global trade and to provide guidance in the areas

311、of“transparency”,“openness”,“impartiality and consensus”,“effectiveness and relevance”,“coherence”and“development dimension”.14 TBT Agreement,Article 6.1(“Recognition of Conformity Assessment by Central Government Bodies”).See https:/www.wto.org/english/docs_e/legal_e/17-tbt_e.htm#articleVI.15 See W

312、TO official document number G/TBT/1/Rev.15,pp.66-67.Official documents can be viewed at https:/docs.wto.org/.16 The approaches that governments might choose to facilitate recognition include the following options:(i)mutual recognition agreements for conformity assessment to specific regulations;(ii)

313、cooperative(voluntary)arrangements between domestic and foreign conformity assessment bodies;(iii)the use of accreditation to qualify(or recognize)conformity assessment bodies;and(iv)the designation by governments of specific conformity assessment bodies,including bodies located outside their territ

314、ories,to undertake conformity assessment.17 TBT Agreement,Article 5.1.2(“Procedures for Assessment of Conformity by Central Government Bodies”).See https:/www.wto.org/english/docs_e/legal_e/17-tbt_e.htm#articleV.18 TBT Agreement,Annex 1,Paragraphs 1 and 2(“Terms and their Definitions for the Purpose

315、 of this Agreement”).See https:/www.wto.org/english/docs_e/legal_e/17-tbt_e.htm#annexI.19 This footprint is explained by the mix of goods and services that governments purchase,which notably comprises goods or services of the construction,transport,defence,utilities,waste management and other indust

316、ries.20 See https:/www.clean-hydrogen.europa.eu/get-involved/mission-innovation-hydrogen-valleys-platform_en.CONSIDERATIONS FOR DEVELOPMENT4Recent projects show the important role that green hydrogen production can play in accelerating developing economies transition to net zero and their inclusion

317、in green value chains.For instance,Kenyas 2023 Hydrogen Roadmap lays out initial plans for reaching 100 MW of installed electrolyser capacity by 2027 and supporting production of 100,000 tons per year of nitrogen fertilizers,which would replace around 20 per cent of the countrys fertilizer imports.I

318、n a second stage,by 2032,Kenya would target between 150-250 MW of installed electrolyser capacity,increasing domestic fertilizer production to up to 400,000 tons per year in the hope of exploring opportunities for exporting green fertilizers within the region.1 In its Hydrogen Roadmap,also launched

319、in 2023,Malaysia shares its intent to increase the share of clean energy in the countrys energy mix by promoting the use of hydrogen in energy storage and as a fuel.Malaysia further intends to invest in hydrogen technologies in order to address domestic consumption,energy security,sustainability of

320、international energy trading and decarbonization.2 Factors fostering green hydrogen production in developing countries In an emerging market such as the green hydrogen market,access to low-cost and stable renewable electricity,such as that from solar PV-or wind-powered electricity,together with wate

321、r availability,is an important prerequisite for investors selecting large-scale project locations.Another criterion is the existence of land and infrastructure,while the availability of power transmission lines,inbound and outbound logistics infrastructures and deep-sea harbours,especially for expor

322、ts of ammonia,steel or synthetic fuels,prove decisive for some projects(Cordonnier and Saygin,2022).Existing and mature hydrogen markets can increase an economys potential for green hydrogen production because sectoral knowledge and skills,enabling infrastructure,as well as networks and practices th

323、at offer a competitive advantage have already been established (Eicke and De Blasio,2022).Finally,an enabling environment in a given economy,defined by economic stability,ease of doing business and regulatory transparency,is essential(Cordonnier and Saygin,2022).Many developing countries are endowed

324、 with abundant low-cost renewable energy resources,thus making them major potential producers of green hydrogen.At the same time,financial support is necessary for the successful uptake of green hydrogen markets.Another crucial element is the developing of solid policy and legal frameworks based on

325、international standards.3The development of green hydrogen production can bring about important social and economic benefits for developing economies,including improved energy security and affordable clean energy access for remote regions.In larger grids,green hydrogen could support the integration

326、of renewables,limit power supply interruptions and provide long-term energy storage(Cordonnier and Saygin,2022).Green hydrogen could also help to usher in a domestic clean energy Many developing countriesare endowed with abundantlow-cost renewable energyresources,thus making themmajor potential prod

327、ucers ofgreen hydrogen.INTERNATIONAL TRADE AND GREEN HYDROGEN 41transition by providing cleaner alternatives to hard-to-abate sectors.Developing a hydrogen sector could also help to improve export diversification potential,as hydrogen(or hydrogen-derived commodities)created through domestically avai

328、lable renewable sources could then be internationally traded.Economies such as China,Indonesia,the Philippines and South Africa have started to take advantage of these opportunities and are gaining experience in using ammonia-based and methanol-based fuel cell systems for their telecommunications se

329、ctors.Large hydrogen or fuel cell projects for stationary power solutions are being built in Argentina,Mali,Martinique and Uganda.Leveraging the full potential of green hydrogen,however,requires building local capacity and increasing access to expertise that,at the global level,remains limited(ESMAP

330、,2020).Importance of technical assistance and financingTechnical assistance can help developing economies to take advantage of their comparative advantages in the context of renewable energy production in order to create an enabling environment for large-scale green hydrogen production.This could su

331、pport and build capacities in developing countries by putting in place robust certification and verification frameworks in line with existing international standards,thereby creating opportunities to integrate effectively into green global value chains.Financial assistance can further mobilize both

332、public and private support,which are essential to propel innovation in the production,transport and use of green hydrogen,and which support the green transition,job creation and improved resilience.For instance,through its Global Gateway initiative,4 the European Union has built partnerships with a

333、number of economies,including Brazil,Chile,Kenya,Morocco,Namibia,South Africa and Tunisia,establishing joint research and investment projects,leveraging public and private investments,and building capacity.In 2020,more than half(51 per cent)of all Aid for Trade commitments included climate-related objectives with a large majority(69 per cent)focusing on climate change mitigation.There is also an e