UNIDO Unveils Path to a Sustainable Hydrogen Future
Vienna, Friday, 7 November 2025.
UNIDO’s new report highlights hydrogen’s pivotal role in sustainable growth, calling it a game-changer for net-zero industries. However, challenges like policy gaps and funding hurdles still exist.
Hydrogen: The Clean Energy Revolution
UNIDO’s latest report, ‘Building a Sustainable and Inclusive Hydrogen Economy,’ positions hydrogen as a transformative force in achieving net-zero industrial development. With a special focus on green and blue hydrogen, the report underscores their potential to decarbonize challenging sectors like refining and steel production, which are otherwise hard to abate [1]. Green hydrogen, derived from renewable energy sources, emits zero emissions, while blue hydrogen, although produced from fossil fuels, employs Carbon Capture and Storage technology to mitigate its carbon footprint [1].
Navigating the Challenges
Despite the excitement surrounding hydrogen, the path forward is littered with obstacles. The report identifies significant barriers, especially for developing countries, such as inadequate policy frameworks, cumbersome financing processes, and a lack of specialized skills [1]. The UNIDO Global Programme for Hydrogen in Industry seeks to tackle these issues, promoting robust domestic policies and rapid skills development to ensure the success of national hydrogen initiatives, particularly in countries like India [1].
The Economic Landscape
Hydrogen’s journey towards becoming a mainstream fuel is marked by economic challenges. According to Erik Rakhou, while investments in low-carbon hydrogen have surged dramatically over the past five years, hydrogen production still represents 2.3-2.5% of global emissions [2]. The cost of hydrogen production in Europe remains high, ranging from €4 to €10 per kilogram, raising questions about its competitiveness compared to fossil fuels. A significant reduction in these costs is crucial for hydrogen to achieve broader adoption in the energy market [2].
A Call for Global Cooperation
The UNIDO report highlights the need for global collaboration to overcome the hurdles facing the hydrogen economy. It calls for the establishment of quality infrastructure, supportive regulatory frameworks, and increased public-private financing to foster a sustainable hydrogen sector. The vision is clear: a world where hydrogen plays a central role in clean energy transitions, supporting economic growth while reducing emissions [1].