The OECD Science, Technology and Industry Policy Paper "Innovation and industrial policies for green hydrogen" examines the current development of hydrogen technology in the manufacturing sector and the industrial policies enacted to support it across countries.
In addition to continued R&D efforts, governments can already lay the ground for the deployment of green hydrogen by implementing five types of policies:
- supporting R&D and demonstration for green hydrogen to bring down the cost of electrolysers and make them competitive;
- increasing the supply of renewable electricity;
- reducing the cost gap between green hydrogen and brown technologies through a comprehensive policy package, such as carbon pricing and the phasing out of inefficient fossil fuel subsidies;
- reducing uncertainty, for instance by promoting international standardisation, hydrogen infrastructure, and sound regulatory standards; and
- considering blue hydrogen as a short-term option to facilitate the transition to green hydrogen.