Roundtable discussion on low-carbon hydrogen underscores importance of global cooperation

In his welcome remarks, WTO Deputy Director-General Jean-Marie Paugam said: “Trade can act as a bridge, linking regions rich in renewable resources with areas of high demand. We have been told that it offers a unique opportunity for developing economies to leverage their green comparative advantage, tapping into their vast renewable resources and advancing sustainability in all its dimensions.”

DDG Paugam further emphasized the need to avoid market fragmentation and enhance interoperability of standards and certification schemes. “From an international trade perspective, it would be desirable to avoid future fragmentation and ensure that different national approaches can work together. This can only be realized through international cooperation and dialogue,” he said at the event, which builds on the 2023 report titled “International Trade and Green Hydrogen: Supporting the Global Transition to a Low-Carbon Economy”, co-published by the WTO and the International Renewable Energy Agency (IRENA).

Global trade in hydrogen holds immense potential, with studies predicting savings of up to USD 3.7 trillion in investment costs by 2050 through cross-border trade in hydrogen, Daria Nochevnik of the Hydrogen Council, the keynote speaker of the first session said.

Moreover, forging new trade partnerships in this sector could generate between 7-10 million jobs by 2035, with up to half of these jobs created in developing economies. Panellists in the first session then noted how developing economies with strong renewable energy potential can benefit from this growing market by becoming exporters of green hydrogen or using it to decarbonize their domestic industries. However, access to infrastructure and capital remains a significant barrier for these economies.

Participants called for enhanced international financing mechanisms and capacity building initiatives to ensure developing economies can meet international certification standards. The panellists were: Carmela Pavlic Searle of the Australia Department of Foreign Affairs and Trade; Smeeta Fokeer of the United Nations Industrial Development Organization (UNIDO); Catherine Irura of the Kenya Green Hydrogen Association; and Asmara Klein of Topsoe.

James Walker from IRENA, the keynote speaker for the second session, highlighted the significant progress in developing technical requirements for hydrogen markets but emphasized the need for further work in derivatives sectors, such as renewable ammonia and methanol. Industry representatives likewise underlined the proliferation of differing national standards and certification schemes, which risks undermining investor confidence.

Panellists in the second session emphasized the importance of interoperability and mutual recognition of certification systems to build confidence in hydrogen as a new asset class. Participants highlighted the importance of establishing consistency in carbon emissions measurement across markets, as well as the need for alignment on the definitions of low-carbon hydrogen to ensure clarity and uniformity in global standards. They also noted that lessons learned from past trade issues related to equipment could help identify and address potential barriers within the hydrogen value chain. It was also highlighted that existing private-sector arrangements between accreditation and certification bodies play a valuable role in ensuring that conformity assessment results are accepted across borders.

The panellists were: Kateryna Holzer of the University of Eastern Finland Law School; Laurent Antoni of the International Partnership for Hydrogen and Fuel Cells in the Economy; Warren Merkel of American National Standards Institute National Accreditation Body; Anil Jauhri of the National Accreditation Board for Certification Bodies India; and Zhonglin Bi of the China Mission to the WTO.

Participants agreed that the WTO can play a pivotal role in facilitating the alignment of standards and ensuring mutual recognition of certification schemes. The discussions on this topic would feed into the ongoing work of the Committee on Trade and Environment and inform sustainability initiatives.

Speaking at the conclusion of the roundtable, Aik Hoe Lim, Director of the WTO’s Trade and Environment Division, reiterated “the need for coordination, the need for interoperability and — very importantly — the need for communication”. He also announced that the WTO, in collaboration with IRENA, is preparing a follow-up to its report on green hydrogen for COP29. The new report will explore the role of trade in advancing derivatives of renewable hydrogen.

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