Despite an uncertain outlook amid structural limitations and recent economic headwinds, green hydrogen may help accelerate the European Union's decarbonization and strengthen its energy security while bringing profound global economic and geopolitical implications. In recent years, a global energy crisis, supply chain disruptions, high inflation and rising borrowing costs have driven up costs for new green hydrogen projects and reduced the impact of government support, while a recent fall in natural gas prices has widened the cost gap between green and fossil fuels-based hydrogen. Meanwhile, there is still some degree of regulatory uncertainty in Europe and North America, resulting in lengthy time lags between the announcement of support schemes and the actual disbursement of funds to project developers. As a result, only a fraction of newly announced green hydrogen initiatives currently reach a final investment decision. Moreover, most government action has so far focused on supporting production rather than increasing...
