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SCALING UP ELECTROLYSERS TO MEET THE 1.5°C CLIMATE GOAL 1.2 LATEST HYDROGEN POLICY DEVELOPMENTS Previous waves of interest in hydrogen have been triggered by oil supply shocks, with this technology seen as a way to diversify away from oil and improve energy security. In recent years, with the focus on net zero emissions and plummeting renewable costs, interest in other sectors has become more prominent. As a consequence, most of the existing policy support for hydrogen is for fuel cell electric vehicles and refuelling stations (IRENA, 2020d). This is set to change in the coming years as focus changes to sectors with existing hydrogen demand (industry) and replacement of fossil-based hydrogen. Promoting hydrogen uptake across the various end- use sectors requires an integrated policy approach. The main pillars of this are: national hydrogen strategies that bring all the elements together, set a long-term vision shared with industry and guide efforts from multiple stakeholders; setting policy priorities for sectors where hydrogen could add the most value according to national conditions; governance systems and enabling policies that remove barriers and facilitate growth; guarantees of origin systems to track production emissions and be able to value the lower GHG emissions (IRENA, 2019a, 2020c). Over the last few years, an increasing number of countries have adopted hydrogen policies and strategies. These differ in scope (e.g. with a focus on green hydrogen, fossil-based, or a combination of the two) and scale (from no targets to very ambitious, quantified hydrogen as well as electrolyser targets). What emerges clearly from this rapid increase in the number and ambition of hydrogen policies in such a short period of time is the widespread recognition that in order to achieve the objectives of the Paris Agreement, green hydrogen has a key role to play in reaching zero emissions from the energy sector (IRENA, 2020b, 2020c). While some strategies support fossil-based hydrogen in the short-term, as a transitional technology for scaling up, there is widespread support for green hydrogen as the long-term, sustainable solution. Support is also more widespread today, with more countries supporting green hydrogen compared to blue. Amongst countries that support only one technologyical pathway, there are also more supporting only green hydrogen than only blue. As recently as 2020, eight jurisdictions around the world announced hydrogen strategies and at least ten more are expected in 2021. These strategies, however, are neither the beginning nor the end of the role of hydrogen in decarbonising energy. They are the result of investment, starting in the 1970s, in energy application research and development (R&D) that has enabled technological progress and close cooperation between private and public actors. This has taken place through partnerships, culminating in vision documents or roadmaps that pave the way for more concrete policy actions by aligning long-term views. These strategies are not the end of the process, however, since they must be followed by impact assessments, policy design, financial viability and implementation. In the last two years, though, there has been a significant increase in public efforts towards achieving these goals (see Figure 2). 19PDF Image | GREEN HYDROGEN SCALING UP ELECTROLYSERS
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