The World Bank has called for investment in clean hydrogen, noting its potential as a game-changer in the global energy transition, particularly for Emerging Markets and Developing Countries (EMDCs) like Nigeria. A new report titled “Scaling Hydrogen Financing for Development” emphasized clean hydrogen’s crucial role in decarbonizing hard-to-reduce sectors, such as heavy industry, heavy-duty transport, and chemicals. The report projects clean hydrogen as a major energy source by 2030 and identifies EMDCs as central to achieving global climate goals.
The World Bank estimates that EMDCs have the potential to attract $100 billion annually in clean hydrogen investments between now and 2030, a significant increase from current levels. This investment surge is projected to enable EMDCs to produce half of the world’s clean hydrogen by 2030, reaching a target of 20 million metric tons per annum. “A global hydrogen economy holds the potential to reshape the energy landscape, offering a chance for sustainable economic growth in Emerging Markets and Developing Countries,” the report stated. It drew attention to the opportunity for EMDCs to become pioneers in this new clean energy value chain, attending to both domestic consumption and export markets. The report recognized that several EMDCs have already formulated clean hydrogen strategies and roadmaps. However, it emphasized the need for well-aligned policies that complement these strategies. Such policies the report noted should be designed to attract private-sector financing and mitigate the risks associated with early-stage investments.
