West cannot overlook ‘S’ in ESG criteria for hydrogen
While megaprojects outside the EU might have fewer obstacles to producing 100pc renewables-derived hydrogen, the potential human cost must not be ignored
At a time when real-terms emissions reductions are desperately needed, making sure green hydrogen is as ‘green’ as it claims is extremely important. After all, if any electrolytic hydrogen is classified as green, the perverse incentive to burn extra fossil fuels to compensate for additional grid demand from electrolysers could do more harm than good. While the EU’s current delegated acts to the Renewable Energy Directive are taking time to emerge, additionality clauses such as those requiring either dedicated renewables capacity, an almost entirely renewables-dominated grid or temporal correlation to renewable energy production are likely to remain in some form in the final draft in an effor
Also in this section
17 January 2025
Bank’s UK arm signs first deal to finance a green hydrogen developer, but cost and offtake pressures mean the sector remains too risky for many lenders
15 January 2025
The country’s technology-neutral position and competitive business environment mean it is looking to be surfing the second wave of the energy transition while others are still grappling with the first
14 January 2025
With abundant wind and sunshine, Africa is poised to lead in green hydrogen production. Yet high costs and financing challenges require global partnerships to unlock the continent's potential
14 January 2025
The continent’s largest economy sees an opportunity to join the global export market, but funding gap and lack of regulatory framework present challenges