How can Development Cooperation instruments accelerate the global green hydrogen ramp-up and bring costs down?
Two priorities stand out:
Identify the most cost-effective and implementable instruments to support the hydrogen sector
Advance high-impact projects in partner countries to scale supply for European markets and local development at the same time
The biggest challenge? Green hydrogen is still more expensive than grey alternatives.
That’s why the key objective is clear:
Design instruments that subsidize the Cost Gap at the lowest cost for sovereigns (national governments acting as borrowers or issuers of debt) while reducing investor risk.
Contracts For Difference can make a decisive impact – providing long-term price certainty, lowering risk, and reducing the cost of capital.
At the same time, emerging markets transform their economies as hydrogen producers. Industries like shipping, aviation, steel, or fertilizer will decarbonize – and green hydrogen becomes the new norm boosting economies and development in our partner countries.