Roundtable Discussion
on Low-Carbon Hydrogen Underscores Importance of Global Cooperation
Trade
and energy experts at a roundtable discussion organized by the WTO Secretariat on
25 September highlighted the key role of trade policies for growth in the renewable
and low-carbon hydrogen sector and its derivatives markets. Participants at the
event, which brought together WTO members, international organizations, and private
sector stakeholders, also highlighted the importance of enhanced international cooperation
on standards and certification.
In
his welcome remarks, WTO Deputy Director-General Jean-Marie Paugam said: “Trade
can act as a bridge, linking regions rich in renewable resources with areas of high
demand. We have been told that it offers a unique opportunity for developing economies
to leverage their green comparative advantage, tapping into their vast renewable
resources and advancing sustainability in all its dimensions.”
DDG
Paugam further emphasized the need to avoid market fragmentation and enhance interoperability
of standards and certification schemes. “From an international trade perspective,
it would be desirable to avoid future fragmentation and ensure that different national
approaches can work together. This can only be realized through international cooperation
and dialogue,” he said at the event, which builds on the 2023 report titled “International
Trade and Green Hydrogen: Supporting the Global Transition to a Low-Carbon Economy”,
co-published by the WTO and the International Renewable Energy Agency (IRENA).
Global
trade in hydrogen holds immense potential, with studies predicting savings of up
to USD 3.7 trillion in investment costs by 2050 through cross-border trade in hydrogen,
Daria Nochevnik of the Hydrogen Council, the keynote speaker
of the first session said.
Moreover,
forging new trade partnerships in this sector could generate between 7-10 million
jobs by 2035, with up to half of these jobs created in developing economies. Panellists
in the first session then noted how developing economies with strong renewable energy
potential can benefit from this growing market by becoming exporters of green hydrogen
or using it to decarbonize their domestic industries. However, access to infrastructure
and capital remains a significant barrier for these economies.
Participants
called for enhanced international financing mechanisms and capacity building initiatives
to ensure developing economies can meet international certification standards. The
panellists were: Carmela Pavlic Searle of the Australia Department of Foreign Affairs
and Trade; Smeeta Fokeer of the United Nations Industrial
Development Organization (UNIDO); Catherine Irura of the
Kenya Green Hydrogen Association; and Asmara Klein of Topsoe.
James
Walker from IRENA, the keynote speaker for the second session, highlighted the significant
progress in developing technical requirements for hydrogen markets but emphasized
the need for further work in derivatives sectors, such as renewable ammonia and
methanol. Industry representatives likewise underlined the proliferation of differing
national standards and certification schemes, which risks undermining investor confidence.
Panellists
in the second session emphasized the importance of interoperability and mutual recognition
of certification systems to build confidence in hydrogen as a new asset class. Participants
highlighted the importance of establishing consistency in carbon emissions measurement
across markets, as well as the need for alignment on the definitions of low-carbon
hydrogen to ensure clarity and uniformity in global standards. They also noted that
lessons learned from past trade issues related to equipment could help identify
and address potential barriers within the hydrogen value chain. It was also highlighted
that existing private-sector arrangements between accreditation and certification
bodies play a valuable role in ensuring that conformity assessment results are accepted
across borders.
The panellists were: Kateryna Holzer of the
University of Eastern Finland Law School; Laurent Antoni of the International Partnership
for Hydrogen and Fuel Cells in the Economy; Warren Merkel of American National Standards
Institute National Accreditation Body; Anil Jauhri of
the National Accreditation Board for Certification Bodies India; and Zhonglin Bi of the China Mission to the WTO.
Participants agreed that the WTO can play
a pivotal role in facilitating the alignment of standards and ensuring mutual recognition
of certification schemes. The discussions on this topic would feed into the ongoing
work of the Committee on Trade and Environment and inform sustainability initiatives.
Speaking at the conclusion of the roundtable,
Aik Hoe Lim, Director of the WTO's Trade and Environment
Division, reiterated “the need for coordination, the need for interoperability and
— very importantly — the need for communication”. He also announced that the WTO,
in collaboration with IRENA, is preparing a follow-up to its report on green hydrogen
for COP29. The new report will explore the role of trade in advancing derivatives
of renewable hydrogen.