Leveraging De-Risking Instruments and International Co-ordination to Catalyse Investment in Clean Hydrogen

Clean hydrogen is a nascent technology that could play an essential role to achieve net-zero emissions. However less than 10% of announced clean hydrogen projects worldwide have reached final investment decision as equity and debt investors often consider these projects to be too risky. This report provides a better understanding of the risk mitigation strategies to unlock and mobilise private capital for clean hydrogen in emerging markets. It highlights how de-risking instruments can address key barriers faced by investors in clean hydrogen projects and suggests ways to allocate risks among actors. The report also proposes actions to enhance international co-ordination for scaling clean hydrogen financing for development. Furthermore it draws lessons from case studies showcasing how lighthouse clean hydrogen projects and available economic de-risking and financing instruments are being implemented in a wide array of countries.