Green hydrogen is emerging as a key driver of economic growth and energy security, offering G20 nations a viable path to decarbonise hard-to-abate sectors, reduce reliance on fossil fuels, and enhance resilience. Scaling global trade in green hydrogen and its derivatives can mitigate geopolitical risks, accelerate renewable energy deployment, and create new economic opportunities – if judiciously deployed in sectors where the fundamentals support its use.
Energy security remains a pressing challenge across the G20. In 2022, member countries spent a record $1 trillion on fossil fuel subsidies – more than double pre-pandemic levels – underscoring the continued reliance on conventional energy. In the same year, oil and gas prices surged by roughly 42–64%, disrupting economies and straining government budgets in both developed and developing countries. Access and affordability also persist as critical issues – 43% of Africa’s population lacks electricity access, while Brazil has seen politically sensitive energy price surges.
As a clean alternative molecule, green hydrogen can help mitigate the inherent vulnerabilities of our fossil fuel-dependent energy system and complement the shift to a renewable electricity-based future. According to the International Renewable Energy Agency, green hydrogen could reduce global emissions by up to 10% and meet 12% of energy demand by 2050 – if adopted widely in industries like fertilisers and chemicals.
The global green hydrogen landscape is advancing rapidly. Countries like Australia, Brazil, India, and Namibia are leveraging policies and incentives to drive down production costs. Meanwhile, the EU aims to balance domestic production with imports to meet its climate targets, and Japan and South Korea are scaling up imports to meet energy needs.
Realising green hydrogen’s full potential will require greater international coordination – especially on cross-border trade, certification, infrastructure, and risk mitigation. G20 nations can lead this effort by establishing shared goals, aligning regulatory frameworks, and creating platforms for public–private collaboration. Harmonising sustainability standards and implementing financial tools like contracts for difference (CfDs) can unlock investments and scale demand.
This transition presents a key opportunity for Global South economies – such as India, Brazil, and African nations – to capitalise on their abundant renewable energy resources, strengthen their energy sovereignty, and position themselves as central players in the clean energy markets. Rather than continuing in extractive roles, these countries can build domestic value chains and become net energy exporters in a net-zero world.
In this context, this brief identifies gaps and shared priorities in G20 hydrogen strategies, offering recommendations for building a scalable, secure, and inclusive global green hydrogen market.
