The future of energy transition can be summed up in two words - Green Hydrogen.
It is sustainable.
It acts as a green substitute to fossil fuels.
It is estimated that it will supply 25% of the world’s energy by 2050, and is a critical enabler of the global transition to sustainable energy and net zero emissions economies.
ILP’s client, Green Hydrogen Organisation, is at the forefront of promoting its use as a renewable source of energy that would greatly help the energy transition and help countries reach their climate targets by 2050. One of Green Hydrogen Organisation’s goals is to promote contracting practices that reflect best practices and create conditions for long-term sustainable investment to ensure that green hydrogen projects benefit both the host government and local communities.
Photo: Working Group including ILP staff on Green Hydrogen Contracting Guidance
In order to launch its initiatives, Green Hydrogen Organisation organised the first ever Green Hydrogen Global Assembly and Exhibition in Barcelona on 17th and 18th of May 2022. The event was attended by more than 500 participants from around the world, including government representatives, industry leaders, and civil society groups to galvanise global action to accelerate the uptake of green hydrogen to address energy security and climate change issues.
John Bush, ILP’s Programme Director for Tax and Fiscal Reform, was invited as a speaker on the panel on Public Financing on Green Hydrogen: Opportunities and Risks.
To read more about John’s contribution on the topic on fiscal terms and incentives for the green hydrogen contracting guidance, please read Brief on Fiscal Terms and Incentives.
Meanwhile, Maria Cristina Mundin, ILP’s Environmental Projects Manager, was invited as a speaker for the panel on Green Hydrogen Contracting for People and Planet.
She discussed the importance of transparency and continuous community engagement in green hydrogen projects to ensure economic development that is fair and equitable.
The Green Hydrogen Organisation’s Chairman, Ex-Prime Minister Malcolm Turnbull, gave the opening address and welcomed everyone to the conference while his co-host, Teresa Ribera, Spain’s Deputy Prime Minister and Minister of the Ecological Transition, gave the keynote address.
Photo: Ex-Australia Prime Minister MalcolmTurnbull (Left) and Spain’s Deputy Prime Minister and Minister of the Ecological Transition, Teresa Ribera (Right)
The assembly saw the launch of three important initiatives that were warmly welcomed by participants. First, the assembly introduced the Green Hydrogen Standard, which is the first global effort of its kind, proposing a standard definition for green hydrogen. Under the Standard, Green Hydrogen projects that meet the green hydrogen standard will be licensed by the Green Hydrogen Organisation to use the label “GH2 Green Hydrogen” and will be eligible to obtain and trade GH2 certificates of origin for green hydrogen and derivatives such as green ammonia. The Standard also requires that environmental, social and governance consequences of green hydrogen production are addressed, and requires that the development opportunities and impacts of green hydrogen production are considered.
Second, the assembly launched the “100 by 2030” campaign, which is a global call for at least 100 million tonnes of green hydrogen to be produced annually by 2030. The campaign will seek pledges of support and will work with partners to track government policies and companies’ capacity to deliver 100 million tonnes of green hydrogen annually by 2030.
Third, the assembly launched the Green Hydrogen contracting guidance for People and Planet. The organisation engaged an expert working group, including representatives from international law firms and the International Lawyers Project to develop eight principles for decision makers, communities, and companies in developing contracting practices for green hydrogen projects. This is to ensure that development benefits the investors, host governments, and the communities where the projects are developed. The guidance covers eight principles: a) Policy and Regulatory Developments; b) Financing of Green Hydrogen Projects; c) Fiscal Terms and Incentives; d) Community Engagement and Transparency Practices; e) Land Acquisition and Use; f) Infrastructure Access and Common Use; g) Sustainable Development Contribution; and h) Dispute Resolution.
The International Lawyers Project is delighted to have supported this project as a member of the Green Hydrogen Organisation’s working group of legal experts, together with our volunteer lawyers at Herbert Smith Freehills.
As more countries look to green hydrogen as a key resource to ensuring sustainable energy transition and providing energy security, there is a need to ensure that standards and contracts embody good contracting practices that promote economic justice while maximising the development potential of green energy projects. This assembly is just the start in raising awareness of the importance of these initiatives and to learn from the mistakes of extractives industries in the past. With these initiatives in place, the future indeed looks bright for green hydrogen.
Highlights of the Green Hydrogen Global Assembly and Exhibition can be found here.
Photo: Panel on Green Hydrogen Contracting for People and Planet.