Guidelines for Sustainable Hydrogen Projects In Developing Countries
The global hydrogen sector is expanding, with an increasing number of large-scale projects coming online. As of May 2024, 1,572 hydrogen projects had been announced, marking a 50 per cent increase over the previous year. Additionally, the number of giga- scale projects [over 1 gigawatt (GW) electrolyzer capacity] rose by 66 per cent within a year, reaching 186 in total. This acceleration is particularly relevant for Africa, which, by 2035, could produce over 50 million tons of renewable hydrogen annually, positioning the continent as a major player in the global hydrogen economy. As countries strive to transition to low-carbon energy systems in line with their nationally determined contributions (NDCs), renewable hydrogen offers an opportunity for economic diversification, industrialization and enhanced energy security. However, the rapid deployment of hydrogen projects also necessitates clear sustainability guidelines to ensure they generate long-term benefits while minimizing social and environmental risks.
Despite the potential of renewable hydrogen to galvanize economies and climate action, governments and development banks often lack a coherent framework to assess and approve hydrogen projects on sustainability grounds. Decision-making processes regarding land allocation, permitting and infrastructure access remain fragmented, increasing the risk of extractive investment models that provide limited local benefits while causing environmental harm. Transparent, universally accepted sustainability guidelines can help decision makers select project partners that align with their respective priorities and objectives, including the UN Sustainable Development Goals (SDGs). Moreover, such a framework can enhance investor confidence and public trust by ensuring that hydrogen projects deliver tangible socioeconomic benefits to host communities.
Recognizing this need, a broad coalition of stakeholders has collaborated to develop the Guidelines for Sustainable Hydrogen Projects, integrating expertise from multiple disciplines to create a flexible yet comprehensive decision-making tool. The effort was led by the United Nations Industrial Development Organization (UNIDO), with contributions from the United Nations Environment Programme (UNEP), the United Nations Economic Commission for Europe (UNECE), the African Development Bank (AfDB), the Just Energy Transition (JET) Green Hydrogen Portfolio of South Africa, the German Institute of Development and Sustainability (IDOS), as well as the MENA Hydrogen Alliance.