Part III: The Role of Green Hydrogen in the Clean Energy Transition
As countries struggle to source reliable energy for their people and their economies, the tension between energy security and climate change mitigation continues to grow. The discussion will heat up again in November as sovereign leaders gather for COP27, the United Nation’s annual conference on climate change. During last year’s COP26, countries made significant commitments to managing greenhouse gas (GHG) emissions in line with the Paris Agreement’s target of limiting global temperature rise to 2°C. However, the events of this year have delayed, and in some cases reversed, climate progress in order to address near-term energy shortfalls.
The latest report published by the Intergovernmental Panel on Climate Change indicates that while emissions reduction initiatives are key to adhering to the Paris Agreement, some forms of emissions are too costly or complicated to abate through energy efficiency or switching to renewables. Our “Tools for Decarbonization” ESG mini-series has explored solutions and technologies that, despite not receiving the same attention as solar power or electric vehicles, have the potential to significantly reduce global GHG emissions. Part I covered Carbon Capture, Utilization, and Sequestration (CCUS), a technology that captures the carbon emitted from industrial processes before it enters the atmosphere. Part II discussed the environmental risks and investment opportunities associated with methane, which accounts for one-fifth of global GHG emissions. In Part III, we address the benefits and challenges associated with green hydrogen production and provide our high-level expectations for COP27, which begins next weekend in Egypt.