Green hydrogen (GH2) is emerging as a key element in the global energy transition, with the potential to account for over a third of international energy trade by 2050. For developing countries, this industry offers a chance not only to decarbonise their economies and meet global greenhouse gas emission goals but also to become competitive exporters, leveraging their resources and renewable energy potential to strengthen industrial development.

However, its adoption faces structural challenges. High production costs and limited infrastructure hinder scalability. Water scarcity poses an additional barrier, as GH2 production requires large volumes of water, particularly in water-stressed regions. Finally, the absence of clear regulatory frameworks complicates trade and investment, while weak incentives limit global demand for GH2-based products, reducing competitiveness.

To address these barriers and accelerate a just and sustainable GH2 transition, we propose three concrete strategies:

• Create a public–private collaboration hub, led by the G20, that brings together governments, businesses, and civil society to exchange knowledge, build capacity, and foster innovation in GH2 production and commercialisation. This hub should promote clear and harmonised regulatory standards that facilitate investment and industry growth, including water efficiency strategies in GH2 production plans.
• Promote blended finance models and create regional hydrogen financing windows to reduce investment risks, as current funding for clean energy remains far below what is needed globally.
• Establish markets that reflect the true value of carbon, incentivising investments in projects covering the entire GH2 value chain.

 Notably, implementing these recommendations will accelerate GH2 adoption globally, ensuring equitable benefits for developing countries and contributing to worldwide economic decarbonisation.