Green hydrogen is emerging as an oasis of hope in global decarbonization narratives, offering a pathway toward carbon neutrality. Nevertheless, scaling green hydrogen needs more than just technological improvement or market investment. It relies on international collaboration, equitable involvement among states and governance systems that streamline climate policies.
Researchers such as Angelico and Franco note that green hydrogen, produced through electrolysis using renewable sources, provides a promising solution to minimize greenhouse gas emissions in hard-to-abate sectors where direct electrification is challenging. This potential has led governments and industries worldwide to pursue ambitious plans and pilot projects to achieve energy security. According to a study by Li, this global surge of hydrogen strategies in policy is evident, with over 50 countries having published hydrogen strategies and 1,572 hydrogen projects worldwide as of September 2024. These roadmaps are often set within wider industrial or climate policy plans, articulating targets for infrastructure, production, demand generation and global partnerships.
The European Union (EU) as a frontrunner in global policy focuses on key initiatives to support a hydrogen economy. Through its Green Deal goals and REPowerEU plan, the EU intends to produce 10 million metric tons (Mt) of green hydrogen by 2030 and import another 10 Mt, with the goal of lowering emissions by a minimum of 55% by 2030. It is commendable to view how the EU accelerates the production of hydrogen through the passage of the Net-Zero Industry Act and the launch of initiatives such as the Clean Hydrogen Partnership. However, as per the review in the European Union Institute for Security Studies, the obscurity surrounding hydrogen’s probable future in the EU economy and foreign trade is heightened by the continual high costs of green hydrogen, unrealistic ambitions, a paucity of renewable electricity and the challenges in generating demand in important sectors.
Another national approach is India’s National Green Hydrogen Mission, which locates the country as a global hub, targeting production of 5 million metric tons per year by 2030 as per the Asian Development Bank Institute (ADBI) report by Ogino and Son. The strategy merges investments in indigenous technologies along with pilot projects. Despite variations in capacity and location, these instances indicate the integration of policies within climate governance frameworks. Where hydrogen initiatives are incorporated into sustainable development plans, national commitment pledges and global cooperation mechanisms, it is apparent to witness policy cohesiveness, investment traction and better implementation of projects. This underscores a critical realization: scaling green hydrogen requires more than just technology deployment or private sector interest, but also depends on how governments align this aspiration with international partnerships, regulatory frameworks and broader climate goals.
The Paris Agreement is seen as a significant starting point for such alignment. Its framework necessitates that nations report long-term strategies (LTS) and Nationally Determined Contributions (NDCs) as per the United Nations Framework Convention on Climate Change (UNFCCC). Nevertheless, green hydrogen continues to be absent in the majority of NDCs, especially in low- and middle-income nations. According to the Organisation for Economic Co-operation and Development (OECD), incorporating hydrogen more precisely in these commitments could accomplish a number of targets, including linking hydrogen research to emission reduction goals, exposing avenues to foreign financing and conveying an affirmation of its determination to investors. This integrated strategy is exemplified by nations such as Japan and Germany. As a vital aspect of their long-term decarbonization plans, hydrogen is tracked through extensive reporting platforms, improving transparency and credibility.
Further, finance is one enduring obstacle particularly in the Global South. Authors such as Davies note that although projects are supported by international climate mechanisms like the Green Climate Fund, the Fund’s impact remains limited in this field due to limitations in project execution. Namibia sets an example in creating a green hydrogen industrial zone in the Tsau Khaeb National Park with the support of Germany. This project presents how climate-aligned funding can promote large-scale initiatives in emerging economies, as it was largely funded through public risk-sharing mechanisms. Such initiatives also mark the geopolitics of hydrogen diplomacy, as bilateral and regional alliances shape how hydrogen is financed and deployed. Not only funding, regulatory governance also presents hurdles. Concerns over greenwashing and the lack of a standardized certification system for the global hydrogen market have grown. In response, a number of nations and regional groups are creating their own criteria. For example, the EU’s Renewable Energy Directive and its CertifHy program are serving as de facto international standards, as noted by Schmid. However, it is often not feasible for countries with weak regulatory capacities to take part in or have an impact on these procedures.
These factors present both opportunity and constraint for small climate-vulnerable states, including Sri Lanka, which serves as a representative case study of the difficulties encountered by many developing island economies within the broader Global South context. As an island nation highly reliant on energy imports and vulnerable to climate risks, Sri Lanka faces increasing pressure to build climate resilience. Evidently, the 2022 economic crisis demonstrated the country’s heavy reliance on imported fossil fuels which was characterized by prolonged power outages and fuel shortages. Nevertheless, Sri Lanka has recently been seen as an aspirant to explore green hydrogen to achieve its NDCs, which is apparent from the Sri Lanka National Hydrogen Roadmap targeting 70% of energy generation from renewables by 2030. Yet, structural limitations persist. Its fiscal crisis lessened its ability to draw large-scale private investment or provide sovereign guarantees. Low regulatory readiness, lack of technical know-how and infrastructure presents challenges from plan to execution. Even so, given its strategic location in the Indian Ocean, Sri Lanka has robust solar and wind potential to achieve its carbon neutrality. The author believes that climate-vulnerable states, with the backing of regional alliances, could pursue a feasible route for knowledge transfer, cooperation in infrastructure and economic involvement. Through multilateral financing mechanisms, LTSs and NDCs, hydrogen should be effectively mainstreamed into climate policy structures on a global scale. If they are not carefully regulated, such partnerships could resemble the extractive tendencies of the fossil fuel trade, where value addition remains centered in the Global North.
Therefore, climate accountability, fair benefit-sharing and transparent governance mechanisms should form the basis of the emerging hydrogen trade. As the global battle for green hydrogen accelerates, the global community needs to go beyond policy rhetoric and create governance systems that allow for widespread involvement, especially from the Global South, while also building public awareness and participation. In this sense, green hydrogen cannot be scaled by technology exclusively; it must be supported by effective climate governance and cross-border cooperation in order to realize its full potential as an integral part of the low-carbon economy.
Further Reading
Caldera, U., Gulagi, A., Jayasinghe, N. and Breyer, C. (2023). Looking island wide to overcome Sri Lankaʼs energy crisis while gaining independence from fossil fuel imports. Renewable Energy, [online] p.119261. doi: https://doi.org/10.1016/j.renene.2023.119261.
Jensterle, M., Narita, J., Piria, R. , Samadi, S. and Prantner, M. (2019). The role of clean hydrogen in the future energy systems of Japan and Germany. [online] Berlin: adelphi. Available at: https://epub.wupperinst.org/frontdoor/deliver/index/docId/7405/file/7405_Hydrogen.pdf [Accessed 14 Aug. 2025].
Klagge, B., Walker, B., Kalvelage, L. and Greiner, C. (2025). Governance of future-making: Green hydrogen in Namibia and South Africa. Geoforum, 161, p.104244. doi: https://doi.org/10.1016/j.geoforum.2025.104244.
Lentschig, H., Patonia, A. and Quitzow, R. (2024). Multilateral governance in a global hydrogen economy: An overview of main actors and institutions, key challenges and future pathways. International Journal of Hydrogen Energy, [online] 97, pp.76–87. doi: https://doi.org/10.1016/j.ijhydene.2024.11.393.
Yana Zabanova and Rainer Quitzow (2025). Hydrogen Policy in the EU: Navigating the Union’s Internal Dynamics and Geopolitical Challenges. pp.17–54. doi: https://doi.org/10.1007/978-3-031-84022-7_2.
Author Bio
Kasuni Prasadini Somarathna is an independent researcher with backgrounds in International Relations and Law, and interests in public policy and post-conflict governance.