Position paper: Invest in hydrogen for robust, resilient and sustainable growth as a response to the COVID-19 pandemic

The Hydrogen Council, a global coalition of 100+ CEOs working to enable the energy transition through hydrogen, calls on governments around the world to invest in hydrogen as part of their COVID-19 recovery plans. Hydrogen technologies can empower a more robust, resilient and sustainable economy; however, urgent action and global collaboration is required to deliver on their unique potential.  

What is at stake

The COVID-19 pandemic has caused a massive contraction in many industries, in addition to the devastating global health impact. The response to this unprecedented economic and societal shock will be a defining moment for the energy transition and international efforts to combat the climate crisis.

To limit global warming to 1.5 degrees Celsius and prevent the most serious potential impacts of climate change, including increased vulnerability to pandemics[1], we need long-term thinking and massive investments in game-changing, systemic solutions such as hydrogen.

Governments are increasingly recognizing hydrogen’s ability to decarbonize sectors that are otherwise impossible or difficult to abate – such as intensive personal or collective transport, freight logistics, industrial heating and industry feedstock – and its role in improving energy security. Meanwhile, industry leaders across the automotive, chemicals, oil and gas, and heating sectors look to low-carbon hydrogen as a serious alternative to reach their increasingly ambitious sustainability objectives.

What we recommend

The Hydrogen Council joins the International Energy Agency and other leading organisations in a call to accelerate clean energy innovation and firmly place the energy transition at the heart of all recovery measures[2].

As a global advisory body, we stand ready to share the Council’s extensive knowledge and expertise and serve as a partner to governments working to design economic recovery plans with hydrogen as part of their strategy. 

We fully acknowledge that different countries have their own unique set of circumstances, priorities and approaches. However, the following principles can serve as general guidance world-wide:

  1. As a basis, we recommend that hydrogen be part of any national or international recovery efforts and stimulus measures, as its systemic role will be key to completing the massive transformation required to deliver a truly sustainable, secure and resilient energy system.
  2. Economic recovery measures should support large scale initiatives that can accelerate cost competitiveness of hydrogen with a focus on the 18 applications identified in the “Roadmap to Hydrogen Competitiveness”[3].
  3. All renewable and low-carbon hydrogen production pathways should be considered and supported, as this will enable a competitive market between technologies and ensure that existing assets are used and converted to increase system resilience.
  4. Transport is responsible for a quarter of direct global CO2 emissions from fuel combustion. Investment to scale up hydrogen used in transport-related applications is needed to reduce costs and ensure there is sufficient downstream infrastructure available. Along with direct electrification, hydrogen solutions (such as fuel cell vehicles and hydrogen-derived e-fuels) will be needed to fully decarbonise the transport sector.
  5. Renewable and/or low-carbon hydrogen can contribute to decarbonisation of industry now and should be supported by a mix of low-carbon hydrogen value support schemes and dedicated support for scale projects for the use of hydrogen as a new fuel or feedstock for hard-to-abate sectors such as steel and chemicals.
  6. Specific new support schemes are needed to overcome remaining challenges. These tools may include public-private partnerships to overcome market failure situations on the infrastructure side, contracts-for-difference or dedicated multi-annual mechanisms (such as grants and tax incentives) to offset the premium of renewable and/or low carbon hydrogen to end consumers.
  7. Global collaboration is a key prerequisite to enabling a robust marketplace that spurs competition and innovation, especially when it comes to harmonisation of codes, standards and regulations. Similarly, seeing ambitious strategies put in place in a handful of leading geographies is encouraging; however, this may not be enough to scale hydrogen to the level needed to achieve our shared climate targets. A comprehensive global action is required.

The Hydrogen Council estimates that hydrogen could deliver 18% of global energy demand, abate 6 Gt of CO2 annually and create 30 million jobs by mid-century. For many industry sectors, that is just one investment cycle away. By investing today, governments can stimulate employment throughout the value chain, from construction and utility workers, office support functions and highly skilled engineer and university resources to address the challenges that a complex sector build-up presents. Innovative small businesses through large multinational finance and energy companies are investing in this space, and government support to foster growth will ensure the benefits are felt throughout the value chain and the entire economy.

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About the Hydrogen Council

The Hydrogen Council is a global CEO-led initiative that brings together leading companies with a united vision and long-term ambition for hydrogen to foster the clean energy transition. Using its global reach to promote collaboration between governments, industry and investors, it provides guidance on accelerating the deployment of hydrogen solutions around the world. The Council believes that hydrogen has a key role to play in the global energy transition by helping to diversify energy sources worldwide, foster business and technological innovation as drivers for long-term economic growth, and decarbonise hard-to-abate sectors. The Council acts as a business marketplace, bringing together a diverse group of 109 companies based in 20+ countries and across the entire hydrogen value chain, including large multinationals, innovative SMEs, and investors. The Hydrogen Council serves as a resource for safety standards and an interlocutor for the investment community, while identifying opportunities for regulatory advocacy in key geographies. To find out more visit www.hydrogencouncil.com and follow us on Twitter @HydrogenCouncil and LinkedIn.


[1] (Belova, et al., 2017)

[2] Special Report on Sustainable Recovery, IEA, 18 June 2020

[3] Roadmap to Hydrogen Competitiveness, Hydrogen Council, 2020

Hydrogen Council Welcomes Toyota Chairman Takeshi Uchiyamada as New Co-chair

Hydrogen Council Co-chairs - Handover

The Hydrogen Council is proud to introduce Takeshi Uchiyamada, Chairman of Toyota Motor Corporation, as the coalition’s new Co-chair. Together with Hydrogen Council Co-chair since 2017, Benoît Potier, Chairman and CEO of Air Liquide, Takeshi Uchiyamada will preside over the Hydrogen Council Board and work closely with member CEOs to take the global hydrogen industry to the next level.

Hydrogen Council Co-chairs - Handover
Hyundai Motor Group Executive Vice Chairman Euisun Chung (left) hands over his role of Hydrogen Council Co-chair to Toyota Motor Corporation Chairman Takeshi Uchiyamada (right).

During my term as Co-chair, I would like to support the global response to some of today’s major challenges and help to address the pressing issue of climate change.

— Takeshi Uchiyamada, Chairman of Toyota Motor Corporation

Hyundai Motor Group Executive Vice Chairman Euisun Chung, who served as Co-chair of the Hydrogen Council throughout 2019 until July 2020, welcomes Takeshi Uchiyamada in his new role: “In this time of unprecedented challenges posed by the COVID-19 pandemic, I have full confidence that with their leadership and commitment Chairmen Potier (Air Liquide) and Uchiyamada (Toyota Motor Corporation) will drive the Hydrogen Council to a bright future.”

Learn more about our new Co-chair and his views for the hydrogen industry as we enter what will be the decade of hydrogen, in this interview.

Why is now the time to invest in and scale up hydrogen?

“Hydrogen is changing the face of transport and is poised to do even more. From powering cars to heating homes, we’re moving towards a hydrogen-based society. Unlike other energy sources, hydrogen only produces water, and is easy to store and transport in large amounts.

Over the last ten years, there have been many projects worldwide for a proof-of-concept of a hydrogen-based society; our vision is now recognised to be based on technologies that have been viably demonstrated.

Hydrogen can create significant benefits for the energy system, the environment, and the global economy. Large-scale investment in massive deployment of hydrogen technologies will build a bridge to the future – a sustainable society.”

Why should governments around the world put hydrogen at the heart of COVID-19 recovery plans?

“The COVID-19 pandemic has a serious impact on the global economy: the International Monetary Fund (IMF) forecasts that global growth is set to decrease by 4.9 percent in 2020. At the same time, the International Energy Agency (IEA) revealed the drastic reduction of carbon emissions and energy demand during the first half of 2020. In the course of a return to “business as usual”, economic recovery packages should be designed to “build back better”. While opinions may differ on recovery approaches around the world, none of us wish to come out of this crisis only to stumble into the next, which could very well be the climate crisis. Dramatic changes are needed in the ways we produce, distribute and store energy around the world, and right now we have a truly unique opportunity.”

Why is the Hydrogen Council best positioned to unite the hydrogen industry worldwide and make this the Decade of Hydrogen?

“The Council brings together some of the world’s leading companies, from upstream to downstream in the hydrogen supply chain, with a clear vision of a hydrogen-based society. With one voice for the industry, the Council promotes cooperation with key stakeholders such as policymakers, investors, international agencies and civil society. Each of these stakeholders has its own role to play to unlock the potential of hydrogen. Public-private collaboration is the only way to achieve that goal and the Council will take initiatives to further foster this cooperation.”

What do you hope to see for the global hydrogen industry during your time as Co-chair of the Hydrogen Council?

“During my term as a Co-chair, I would like to support the global response to some of today’s major challenges and help to address the pressing issue of climate change that faces all of us collectively.

Today, the Council has grown to more than ninety companies, having boosted global collaboration between governments, industries, investors, and international organisations over the past few years.

The industry is now firmly positioned to scale up hydrogen globally. Many brilliant people around the world have spent a great amount of time working on projects envisioning a hydrogen-based society, and I believe that we, as an industry, are close to realising it. This will happen region by region, based on a wide variety of market conditions and government regulations and support.

The stories we read and talk about today are global challenges – we all face them together. Similarly, they are about the opportunities we share. And these stories will find their way to the next generations. I believe there is still much to do, but the future comes only to those who aren’t afraid to face the challenges ahead. As co-chair of the Hydrogen Council, I’m proud to work with such kind of leaders.”