Financing low-carbon hydrogen: The role of public policies and strategies in the EU, UK and USA

• Type: Article in International Scientific Journal
• Date: 2023

Authors

Moura, J (Author) Other; Soares, I (Author) FEP

Journal

Title: Green Finance

Vol. 5

Pages: 265-297

ISSN: 2643-1092

Indexing

ISI Web of Knowledge - 5 Citations

Scopus - 6 Citations

Other information

Authenticus ID: P-00Z-7DA

DOI: 10.3934/gf.2023011

Abstract (EN): The goal of this study is twofold: first, to understand the rationales of public policies and possible outcomes on energy systems design behind supporting national hydrogen strategies in three major economic blocs (the EU, UK and USA) and possible outcomes on energy systems design; second, to identify differences in policy approaches to decarbonization through H-2 promotion. Large-scale expansion of low-carbon H-2 demands careful analysis and understanding of how public policies can be fundamental drivers of change. Our methodological approach was essentially economic, using the International Energy Agency (IEA) policy database as a main information source. First, we identified all regional policies and measures that include actions related to H-2, either directly or indirectly. Then, we reclassified policy types, sectors and technologies to conduct a comparative analysis which allowed us to reduce the high degree of economic ambiguity in the database. Finally, we composed a detailed discussion of our findings. While the EU pushed for renewable H-2, the UK immediately targeted low-carbon H-2 solutions, equally considering both blue and green alternatives. The USA pursues a clean H-2 economy based on both nuclear and CCS fossil technology. Although there is a general focus on fiscal and financing policy actions, distinct intensities were identified, and the EU presents a much stricter regulatory framework than the UK and USA. Another major difference between blocs concerns target sectors: While the EU shows a broad policy strategy, the UK is currently prioritizing the transport sector. The USA is focusing on H2 production and supply as well as the power and heat sectors. In all cases, policy patterns and financing options seem to be in line with national hydrogen strategies, but policies' balances reflect diverse institutional frameworks and economic development models.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 33