Low-Carbon Hydrogen
Hydrogen has the potential to decarbonize hard-to-abate sectors, which require a large amount of energy to run their operations.
Global hydrogen demand increased to almost 100 million tonnes (Mt) in 2024, up 2% from 2023 and in line with overall energy demand growth (IEA, Global Hydrogen Review 2025).To unlock its potential, it is key for businesses, policymakers, finance and international organizations to collaborate to accelerate the deployment of hydrogen with the lowest possible carbon intensity. WBCSD brought together companies from across the value chain to address the barriers hindering the large-scale adoption of decarbonized hydrogen.
The
challenge
Realizing the potential of the hydrogen economy requires overcoming several challenges.
Key barriers to scaling up include:
• Producing hydrogen demands large amounts of energy, which today is often sourced from fossil fuels. The technologies to produce low-carbon hydrogen exist but scaling them requires accelerating renewables’ adoption and lowering the costs of electrolyzers.
• Storing and transporting hydrogen is difficult due to its low energy density and the need for specialized infrastructure.
• Setting up the specialized infrastructures at scale is costly and only significant investments and policy support will make hydrogen cost-competitive.
The
business case
As hydrogen-enabling technologies become more cost-competitive over time, driven by decreasing electricity prices and technology costs, low-carbon hydrogen is expected to emerge as one of the solutions to decarbonize the hard-to-abate and heavy-duty mobility sectors by 2050.
The
solution
Within this project, our members collaborated to help accelerate the deployment of hydrogen with the lowest possible carbon intensity.
We supported the implementation of hydrogen projects by unlocking barriers along the value chain, advocating for strong policy incentives, strengthening the market signal for low-carbon hydrogen, and increasing offtake through contract management schemes.
