COP30: Hydrogen

Recommendations

• Raise the price of carbon and maintain support mechanisms. Use carbon pricing and regulation to make pollution more costly, while strengthening support schemes for scaling up zero-emission hydrogen production.
• Establish global standards and enforce implementation. Promote a unified international classification of hydrogen based on life cycle analysis (LCA). This will provide a transparent and comparable foundation for trade and investment.
• Build and scale up markets, infrastructure and demand. Establish transitional schemes — including public funding — to stimulate scale-up and market demand in the early phases. Remove regulatory barriers and support the development of national and international markets and geographic ecosystems such as Hydrogen Valleys.
• Reduce methane and hydrogen emissions. Provide incentives to use Best Available Technology for the extraction, transport and utilisation of natural gas and hydrogen to minimise climate impacts.
• Develop international partnerships. Strengthen cooperation with countries seeking rapid hydrogen implementation through bilateral trade agreements combined with research and technology exchange on a technology-neutral basis. Support the continuation of the Clean Hydrogen Partnership under FP10 and cross-border collaboration projects.
• Strengthen research and innovation. Prioritise development of:
  • More cost- and energy-efficient electrolysis and low-carbon production technologies.New solutions for transport, storage and end-use in industry and transport.Safety and sustainability across the entire value chain, including climate and environmental impacts and business models for competitive market implementation.
  • Research and innovation that ensure hydrogen use and uptake across small, medium and large scales.

Current situation

Almost all hydrogen produced today comes from fossil sources without CCS, resulting in nearly one billion tonnes of CO₂ emissions per year globally. Hydrogen is currently used mainly in industrial processes such as ammonia, fertiliser and petrochemical production. It is largely consumed where it is produced, as hydrogen is difficult to transport and store. Future use will include new industrial processes such as the production of steel, glass, aluminium and metal alloys, as well as fuel for energy-intensive sectors such as maritime transport, long-distance logistics, and potentially aviation.

Zero-emission hydrogen can be produced by electrolysis, while low-carbon hydrogen can be produced from natural gas combined with carbon capture and storage (CCS). To reach net zero, emissions from existing hydrogen production must be eliminated, while total production must increase substantially — from today’s 100 million tonnes to 400–500 million tonnes annually by 2050.

Countries without access to natural gas resources — such as those in Europe, Japan and South Korea — will rely on electrolysis or imports. Gas-producing countries can convert natural gas into hydrogen with close to 100 % CO₂ capture and storage, which is especially attractive in regions where renewable power is limited. Most countries, including the EU, currently lack sufficient renewable electricity to meet their hydrogen ambitions. The EU’s electricity mix is about 39 % renewable on average, while Norway’s share is around 97 % (excluding offshore oil and gas activities). When including all energy sectors, Norway’s overall energy mix is roughly 50 % renewable.

Progress, however, remains too slow. The cost of both green and blue hydrogen remains high, demand is low, and uncertainty has caused many projects to be delayed or cancelled. Nevertheless, global investment has increased by around 50 % annually since 2020. Installed and operational electrolysis capacity in Europe reached 177 MWₑ in 2025, up from 142 MWₑ at the end of 2024[iii]. The same source projects total hydrogen demand at 2.3 million tonnes by 2030, including 0.6 million tonnes of blue hydrogen.

Hydrogen can also provide significant benefits through sector integration, where production, storage and end-use are co-located in regional clusters — Hydrogen Valleys. These approaches deliver economies of scale, lower costs and improved competitiveness.

Solution

Hydrogen can be a key enabler of lower CO₂ emissions if we establish frameworks that make it competitive with fossil alternatives. Carbon pricing and regulatory measures that raise the cost of emissions will make low- and zero-emission solutions more attractive, while targeted support for production and use will help build market demand.

Strict requirements for emission intensity are needed to ensure that hydrogen development progresses in tandem with renewable energy and does not become a new source of emissions. Early investment in infrastructure and value chains is critical, requiring coordinated action between governments, industry and research institutions, along with clear priorities for profitability and sustainability.

Sustained funding for research and development is vital to make hydrogen solutions more cost- and energy-efficient and to stimulate demand. Close collaboration between industry, government and research communities — combined with regional initiatives and sector-coupled projects — will be essential to build competence and infrastructure.

Countries aiming for rapid hydrogen implementation should enter bilateral agreements to share technology, experience and markets, accelerating global development. Hydrogen is not the solution alone, but it is a necessary tool in the portfolio required to achieve net zero. With the right policies, technologies and partnerships, hydrogen can become a cornerstone of the global energy transition.