实现绿色氢能经济 Actualizing the green hydrogen economy Legal and financial considerations to advance sustainable energy-德勤

Deloitte。

Actualizingthegreen

hydrogeneconomy

Legalandfinancialconsiderationsto

advancesustainableenergy

MAKINGAN

IMPACTTHAT

MATTERS/

Actualizingthegreenhydrogeneconomy|TableofContents

02

ExecutiveSummary03

1.Introduction06

2.Legalpolicyframework09

3.Financialandinvestmentconsiderationstogreenhydrogen14

3.1.Economicandfinancialcharacteristicsofgreenhydrogen15

3.2.Overviewofsomeofthemainfinancialandeconomicinstrumentstohelpincrease

bankabilityofgreenhydrogenprojects19

3.3.Effectivenessofthemainfinancialandeconomicinstruments21

4.Recommendations24

Appendix:Thecasestudyandcalculationofdifferentindicators26

Endnotes30

AuthorsandContacts35

DeloitteCenterforSustainableProgress37

Actualizingthegreenhydrogeneconomy

ExecutiveSummary

Executive

Summary

03

ExecutiveSummary

Actualizingthegreenhydrogeneconomy

04

Financingsupport

Reducethecostofcapital

e.g.,SDGNambiaOneFund

(Nambia)

Operationalsupport

Premiumproportionaltohydrogenproduction

e.g.,SDE++(theNetherlands)

IRA45v(US)

Marketcreation

Ensurethatgreenhydrogenwillbebought

e.g.,H2Global(Germany)

EuropeanHydrogenBank(EU)

Permitfacilitation

Facilitatetheroll-outofprojectsbyallowingquickcommissioning

e.g.,Net-ZeroIndustryAct(EU)

Actionontheglobalclimatecrisisfrontiswantingandfarfromsufficient.FindingsoftheIntergovernmentalPanelonClimateChange’s(IPCC)6thAssessmentReport(AR6)highlightthat

projectedadverseimpactsandrelatedlossesanddamages

intensifywitheveryincrementofglobaltemperaturerising.

Limitingglobalwarmingrequiresdeepdecarbonizationofthewholeeconomy.Suchatransitiontonet-zerogreenhousegas(GHG)emissionsentailslowcarbonintensityateachsectoroftheeconomyandimportantchangesinbehaviors,regulations,andinstitutions.Forhard-to-abatesectorssuchasheavy-dutytransportandsomeindustrialprocesseswhereelectrificationcanbeverydifficultorimpossible,mitigationoptionscan

includedecarbonizingthroughabatementtechnologiesand

switchingtonewlow-andzero-emittingenergycarrierssuchascleanhydrogenanditsderivativemolecules,suchasammonia,methanolandothersyntheticfuels.

Thispaperreviewsthegreenhydrogenlandscapeproviding

insightsoncurrentanddevelopinglawandpolicyframeworks,

finance,andbankabilityconsiderations,andprovides

recommendationstohelpadvancethegreenhydrogenvaluechainconsideringkeychallengesandareasofopportunity.

Giventhenascentnatureofthecleanhydrogensector,alignmentofthepolicyandregulatoryarchitecturetowardsaParis-alignedgreenhydrogeneconomycanprovideimportantlegalclarity,

certaintyandcancreateanenablingenvironmentforstakeholderengagementacrossthevaluechain.Theglobalpolicyenvironmentonthedevelopmentofagreenhydrogeneconomyisshaping

up,notablyviatheUSInflationReductionAct(IRA),theGermanH2Globalofftakeplatform,andothernationalandregional

hydrogenstrategiesinareassuchastheEuropeanUnion,the

UnitedArabEmiratesandAustralia.Whiletheimportanceof

financeanddifferentcost-reductionsupportmechanisms(suchasoperationalorinvestmentsupportschemes)wasunderscoredacrosstheseregions,thepolicyenvironmentcurrentlylacks

sufficientregion-specifictoolstohelpkickstartthegreenhydrogeneconomy.

Thephysicalandeconomiccharacteristicsofgreenhydrogenmakeitsproductioncosthighlysensitivetotheweather

conditionsanditsfinancingstructure.Moreover,thenascentnatureofcleanhydrogenmarketmakesithighlydependentonpolicyandregulatorysupport.Initiationofacleanhydrogen

economy,inlinewithsustainabledevelopmentgoals,requires:

1.Facilitatinginvestmentsviaunlockingfundsandforeigninvestmentinitiatives,

2.Reducingfinancingcostsviaenablingaccesstolow-costfinance,

3.Creatingalevel-playingfieldforgreenhydrogenviaoperationalsubsidiesuntilatleastlate2030s,

4.Creationofdemandforgreenhydrogenviasectoralinitiativesandobligations,and

5.Reductionofthepermittingandconstructionperiodsviafacilitatedpermittingprocesses.

Severalmechanismscanbeusedtohelpmakegreenhydrogenprojectseconomicallymorecompetitiveandtofacilitate

investments:investmentsupport,financingsupport,operationalsupport,ResearchandDevelopment(R&D)support,market

creationandpermittingfacilitation(Figure1).

Figure1.Summaryofthepolicysupportmechanismstoincreasethebankabilityofgreenhydrogenprojects

Investmentsupport

Financeapartofthecapitalexpenditure

e.g.,Innovationfund(EU)

CleanH2InfraFund(worldwide)

R&Dsupport

Developaself-sustaining

hydrogenvaluechain

e.g.,CleanHydrogenJoint

Undertaking(EU)

ExecutiveSummary

Actualizingthegreenhydrogeneconomy

05

US$/kgH2

1.8

1.0

2.3

3.8

1.3

0.8

1.7

Theanalysisinthecurrentpapershowcasestheimportanceof

supportmechanismstohelpreducetheupfrontcostsofthe

projectsthatwouldbringboththeneededinvestmentsand

theassociatedfinancingcostsdown.Reducingrisksassociated

withgreenhydrogenprojects(regulatoryrisks,marketrisks,

technologyrisks,etc.)especiallyindevelopingeconomiescan

bringsignificantcostreductionsthankstoreducedcostofcapitalintheseregions.Reducingthecostofcapitalintheseregionstosimilarlevelsinthedevelopedeconomiescanreducetheprojectcostsbymorethan25%(Figure2).Consideringdirectmonetary

support,investmentsupportmechanismsareidentifiedasoneofthemostefficientcost-reductionlevers,reducingboththeupfrontinvestmentneedsandfinancingcostssimultaneously.

Unlockingthedecarbonizationpotentialofgreenhydrogenrequiresimportantpolicyandregulatoryaction.Thefindingsoftheanalysisreinforcetheimportanceofactionsactivatingdifferentleversfacilitatingdevelopmentofgreenhydrogenprojects,notablyindevelopingeconomies:

•Facilitatedeployment:Giventhecurrentclimateemergency,theactionshouldbeimminent.Reducingdelaysinproject

developmentviaanchoringpermittingprocesseswithacentralagency,acceleratedenvironmentalimpactassessments(EIAs)andstrategicenvironmentalassessments(SEAs),andleveragingtheexistinginfrastructureandretrofittingthemtohydrogen

infrastructurescanreducesomeoftherisksassociatedwithdelayedactions.

•Improvesocialacceptability:Sustainability-linkedactionsinlinewiththeUNSustainableDevelopmentGoals(SDGs)shouldacquirefullpublicsupport.Collaborationandempowering

localcommunities,alignmentofregulatorymeasureswith

Indigenoussustainabilityperspectivesandgroundedinfree

priorinformedconsentofthelocalpopulationthrougheffectiveparticipatoryprocessescanbekeyforincreasedsupportofthelocalpopulationsandsocialacceptabilityofgreenhydrogen

development.

•Createthemarket:Greenhydrogenfordifferentenduses

tendstobemoreexpensivethanitscounterparts,andearly

adoptionofthistechnologylikelyrequiresbothcreationofa

marketwherethereisademandforsuchaproductandbridgingthecostgapbetweengreenhydrogenandtheconventional

fossilfuels.Theprojectsneedtobesupportedintheirearly

stages,whichcantakeseveralforms:directinvestmentor

operationalsupport,contractsfordifferences,offtakecontracts,andotherdemandcreationmechanismssuchasguaranteesoforiginandgreencertificates.

•Enhancethefinancingconditions:Projectsindeveloping

andemergingeconomieswithhighrenewableendowments

needfacilitatedfinancingandliquiditythroughblendedfunding,internationalgreenfinanceandstateguaranteestohelpreducethecostofcapitalandconsequentlythefinancingcostsof

theprojects.

Figure2.Impactofweightedaveragecostofcapital

(WACC)onthelevelizedcostofgreen

hydrogenproductioninSouthernAfricaand

SouthernEurope

5.1

5.2

2.7

0.8

1.7

11%WACC6%WACC

6%WACC

SouthernAfrica

SouthernEurope

InvestmentcostOperationalcostsFinancingcostTotal

1.Introduction

Actualizingthegreenhydrogeneconomy

1.Introduction

06

1.Introduction

Actualizingthegreenhydrogeneconomy

07

Globalwarmingcrisisrequiresdecisiveactions,butintheircurrentlevels,theyarefarfromsufficient.Findingsofthe

IntergovernmentalPanelonClimateChange’s(IPCC)6th

AssessmentReport(AR6)highlightthatprojectedadverseimpactsandrelatedlossesanddamagesintensifywitheveryincrementofglobalwarming.1Thereportshaveconsistentlyillustratedemissionscenariosthatareessentialtoassessimpactsandanalyze

mitigationeffortsneededtoactontheclimatecrisis.2These

scenariosarecrucialtohelpformulateprojectionsforsystems,

includingenergysystems,whichinturnsupportnationaland

internationalpolicymakingandthedesignofplausiblesustainabledevelopmentpolicyactions.InitsrecentAR6synthesisreport,

theIPCCshowsthatscenariosandmitigationpathwaysconsistentwithlimitingglobalwarmingto1.5°Careverylikelytorelyheavilyonrenewables,efficiencymeasuresandnet-negativeemissions,consistentwitharapidintroductionofmitigationmeasures.3

TheUnitedNationsEnvironmentProgramme(UNEP)Emissions

Gapreportcorroboratesthisfindingoutlining,togetontrackforlimitingglobalwarmingto1.5°C,globalannualgreenhousegas

(GHG)emissionsmustbereducedby45%comparedtoemissionprojectionsunderpoliciescurrentlyinplace,andtheymust

continuetodeclinerapidlyafter2030,toavoidexhaustingthe

limitedremainingatmosphericcarbonbudget(below400GtCO2eqofcumulativeemissionsby2050).4

Climatechangehasandisadverselyimpactingandexposing

vulnerabilitiesofindividuallivelihoodsandclimate-sensitive

sectors.AR6highlightstheveryhighlikelihoodofincreasein

compoundingandcascadingimpactsmakingitmoredifficult

tomanage,resultinginanexacerbationofvulnerabilitiesof

ecosystemsandpeopletoclimatehazards.5Therisksare

boundtohavearippleeffectacrossthefood,energyand

watersectorstomentionafew.6Inthepastyear,theRussia-

Ukrainewarpinpointedthevulnerabilityofthecurrentglobal

energysystem,givenitsdependenceonfossilfuelsproduced

fromaverysmallnumberofcountries.7TheIPCCunderlines

theimportanceofadaptationandmitigationactions,across

scales,sectorsandregions,thatprioritizesequity,climate

justice,rights-basedapproaches,socialjusticeandinclusivity,

leadingtomoresustainableoutcomes,reducingtrade-offs,

supportingtransformativechangesandadvancingclimate

resilientdevelopment.8Theseactionsareneededfordeep

decarbonizationthatcountersthescaleandrateofclimate

changeanditsassociatedrisks.Alignedtocountry-specific

circumstances,carryingouttheneededactions,requirespolitical

commitmentwithmulti-levelgovernance,regulation,laws,policies,andstrategiesthatcanhelpsupportdeepemissionreductionsifscaledupandenhanced.9

Indeed,adeepdecarbonizationtransitiontonet-zerocarbonemissionsentailslowcarbonintensityacrosseachsectorof

theeconomyandradicalchangesinbehaviors,regulations,

andinstitutions.10Inthisregard,reducingenergyandindustry-relatedemissionsrequireselectrification11,12andanimmediateshifttowardsrenewables.13,14,15Forhard-to-abatesectorssuchasheavy-dutytransportandsomeindustrialprocesseswhereelectrificationisverydifficultorimpossible,mitigationoptions

canincludedecarbonizingthroughabatementtechnologiesandswitchingtonewlow-andzero-emittingenergycarrierssuch

ascleanhydrogenanditsderivativemolecules(e.g.,ammonia,

methanolandothersyntheticfuels).1TheEmissionsGapreport

alsooutlinessomeofthekeyactionsneededtohelpadvance

transformationthroughavoidinglock-inofnewfossilfuel-intensiveinfrastructure,furtheradvancingandapplyingzero-carbon

technologiesandpromotingbehavioralshifts.16

Historically,hydrogenhasbeenproducedviareformationof

naturalgas(greyhydrogen)orgasificationofcoal(black/brown

hydrogen),bothbeinghighlycarbonintensive.17Forhydrogentobeaneffectiveemissionreductionoption,itshouldbeproducedusingcleanenergysources,oritsCO2emissionsshouldbeabated

viacarboncaptureandstorage(CCS).Amongdifferentclean

hydrogenproductionoptions,onlyelectrolysis-basedhydrogenusingcleanelectricityhasnet-zerodirectCO2emissions,as

CCS-basedsolutionsareassociatedwithresidualCO2emissionsandupstreammethaneemissionsofnaturalgas.18Green

hydrogencanbeproducedviawaterelectrolysisusingrenewableelectricity,mostlywindandsolarpower.Becauseoflower

technologicalmaturityofotherelectrolysis-basedcleanhydrogenproductionroutesandpromisingcostreductionofrenewables

andelectrolyzers,greenhydrogenisconsideredtobecomethe

keycleanhydrogensupplyoptioninthelongrun,beingboth

economicallyviableandtrulysustainable.19Developmentofa

globalgreenhydrogenmarkethasthepotentialtoplayacriticalenablingroleindevelopingandemergingeconomiestohelpdriverobustsustainabledevelopmentoutcomes.20

Greenhydrogencanhelpdecarbonize

hard-to-abatesectorssuchasheavy-dutytransportandsomeindustrialprocesseswhereelectrificationisimpossibleor

verycostly.

Actualizingthegreenhydrogeneconomy

1.Introduction

Fromanindustryperspective,asmanyindustrialprocessesare

alreadyoptimizedforhigherefficiencyandsomecannotonlyrely

onelectrification(suchassteelproductionandchemicals),key

transformationsneededtohelpbringtheindustrysectortoa

Paris-compatiblepathwayincludeintegrationofgreenhydrogen

productioncapacities.21Moreover,whilethereappearstobe

scientificconsensusregardingtheeffectivenessofelectrification

tohelpdecarbonizeacrossmanysectors,somesectors,such

asmaritimetransportandaviation,requiresolutionsbeyond

electrification.Syntheticfuelsproducedfromcleanhydrogensuch

asammoniaandmethanolcanbringneededemissionreductions

tothemaritimetransportsector.22Similarly,sustainableaviation

fuels,seenasleadingsolutionsforthedecarbonizationofaviation,

canbeproducedeitherfromhydrogen(synthetickerosenevia

Fischer-Tropschreaction)orbiologicalfeedstock(bio-kerosene).23

Finally,hydrogencanbeanimportantgamechangerforthe

integrationofvariablerenewableenergysources(windandsolar

power)tothepowersystem,bringingtheneededflexibilitytothe

systembyprovidinglong-termenergystorageandgrid

stability.24,25

Theglobalcleanhydrogen(mostlygreen)economycangrowup

toUS$1.4trillionannuallyby2050.ItcanreduceGHGemissions

by85GtCO2eqandcontributesignificantlytoeconomiesby

supportingabout1.5millionnewjobsperyearbetween2030-

2050indevelopingandemergingeconomies.19Therefore,

aneffectiveunderstandingoftheregulatoryandfinancing

environmentneededtohelpsuccessfullyscale-upthesupply

ofgreenhydrogeniscriticaltoactualizingintersectionswiththe

UnitedNations(UN)SustainableDevelopmentGoals(SDGs).

Tohelpunlockthedecarbonizationpotentialofgreenhydrogen,

itshouldbewidelyaffordable.Withtherightpoliciesputinplace

now,itcouldsoonbecomeacornerstoneoftheworld’sshiftaway

fromfossilfuels.26Furthermore,internationalcooperationand

coordinationisimportanttohelpdevelopamarketforhydrogen

fromrenewablesources,withcoordinatedtargets,standards,and

bilateralandmultilateralcooperationagreements.27

08

Actualizingthegreenhydrogeneconomy|2.Legalpolicyframework

2.Legalpolicy

framework

09

Actualizingthegreenhydrogeneconomy|2.Legalpolicyframework

10

Areviewofnationallawandgovernanceframeworksexplores

theimportancethatforward-facingregulatoryapproachesplayinadvancingthegreenhydrogeneconomy.AdvancedexperiencesarereviewedfromtheEuropeanUnion(EU),Germany,United

States(US),Namibia,Australia,UnitedArabEmirates(UAE)andMoroccoprovidingperspectivesontheprogressionoflegislative

draftingvisavisgreenhydrogenanditsderivatives.

Greenhydrogenhasgainedsignificantattentioninthepolicy

frameworkaroundtheglobewithvaryingapproachesadoptedtoadvancecapacity.Table1providesanoverviewofthepolicyandregulatoryapproachesadoptedacrossthejurisdictions.

Table1.Policyandregulatoryapproachestopromotethedevelopmentofgreenhydrogenacross

theselectedjurisdictions

Geography

Existinglegalandpolicyframework

Enablers

EuropeanUnion(EU)

•FirstRenewableEnergyDirective(RED),2001(updatedin2009)promotedthedeploymentofrenewableenergysourcesacrosskeysectorsoftheEU

economy.28

•REDII,2018updatedframeworkagreementgoverningrenewableenergygenerationandusewithintheEU.29

•REDIII,2023(Provisionalagreement)raisedrenewableenergytargetsfrom32%to42.5%aimingfor45%.Itwillmodifysectoraltargetsincludingspecifictargetsforhydrogenbasedrenewablefuelsofnon-biologicalorigin(RFNBO’s).30

•EuropeanCommission(EC)proposedanencompassinglegislative

frameworkfortheproduction,consumption,infrastructuredevelopmentandmarketdesignforhydrogen(AlsorefertoRenewableEnergyDirective).31,32

•‘Fitfor55’packagecreatesincentivesforhydrogenuse,includingbindinggoalsforindustryandthetransportsector.33

•GreenDealIndustrialPlanprovidesaconduciveenvironmenttoscaleupthemanufacturingcapacityfornetzero.34

•Amutuallysupportive

incentivizationschemewhich

currentlycomprisesofthe

RenewableEnergyDirectiveandtheEmissionTradingSystem35

•AplantosetuptheEuropeanHydrogenBank,toinvestmorethanUS$3billion(€3billion)

tokickstarttheEuropeanH2market36

•Fixed-premiumauctionsfor

renewablehydrogenfrom2023willalsobeprovidedbytheEU’sInnovationFund37

Germany

•RenewableEnergySourcesAct(EEG2021)andRenewableEnergiesOrdinance(EEV,2021)containssupportschemesforrenewableenergysources,whichdirectlyaffectthecostofelectricityconsumedforgreenhydrogenproduction.38

•EnergyIndustryAct(EnWG)mentionsthesupplyofhydrogenbyprovidingthepurposeoftheactintheprovisionofgrid-basedsupplybasedon

renewables,drawingattentiontohydrogen.39

•KoalitionsvertragzwischenSPD,Bündnis90/DieGrünenundFDP

formulatesa‘nationalhydrogenstrategy’asof2022,andidentifiestheneedtodeveloptheImportantProjectofCommonEuropeanInterest(IPCEI)to

financiallysupportinvestmentsinthedevelopmentofahydrogennetworkinfrastructure.40

•NationalHydrogenStrategy(NHS,2020)helpscreatetheopportunitytoplayakeyroleininternationalcompetitionforthedevelopmentandexportofhydrogenandPower-to-Xtechnologies.41

•FederalEmissionControlActprovidesanauthorizationprocedurepursuantfortheconstructionandoperationofahydrogenproductionfacilitysuchasapower-to-gasplant.42

•EnvironmentalImpactAssessmentActrequiresapreliminaryauditkeepinginmindfulfilmentofrequirementsstipulatedbytheHazardousIncidentOrdinance.

•FederalNetworkAgency

(BnetzA),responsibleforthe

regulationofhydrogenprojectsashydrogencurrentlyfalls

undertheregulationofgasandelectricitymarkets43

•Publicfundingguidelinesforthefinancialsupportofinternationalhydrogenprojects

•Thefundingguideline

specificallysupportsprojectsfortheproductionandfurtherprocessingofgreenhydrogenanditsderivativesaswellasforthestorage,transport,anduse

ofhydrogenincountriesoutsidetheEUviaaninvestmentgrantforthesystems44

•TheaimofH2Globaltopurchasegreenhydrogenproducts

cheaplyontheworldmarketandtosellthemtothehighestbidderintheEU

11

Actualizingthegreenhydrogeneconomy|2.Legalpolicyframework

Geography

Existinglegalandpolicyframework

Enablers

United

States

•EnergyPolicyAct,2005expandedlarge-scalehydrogenresearchanddelvedintodevelopmentofhydrogenasanalternativesourceoffuel.45

•InflationReductionActprovidescleanenergyincentiveswithprovisionsforcleanhydrogenandfuelcelltechnologies,eitherextendingexistingfederaltaxcredits,orcreatingnewfederaltaxcredits.46

•Californiaspecificinitiatives

–LowCarbonFuelStandardleveragesfederalinvestmentfromthe

InfrastructureInvestmentandJobsActestablishinganenvironmentallyandeconomicallysustainableandexpandingrenewablehydrogenhub.47

–AllianceforRenewableCleanHydrogenEnergySystems(ARCHES)

supportsanH2consortiumtoadvancepublic-privatepartnershipsthat

acceleratedeploymentofclean,renewableH2projectsandinfrastructure.48

•LaunchofTheHydrogenShottohelpacceleratebreakthroughsinhydrogentechnologyandcutthecostofcleanhydrogenby80%

toUS$1perkilogram(kg)inonedecade49

•Texasspecificinitiatives,2022,includinganewmega-scale

greenhydrogenfacility50

Namibia

•TheNationalEnergyPolicy,2017aimstoprovide,energysecurity,enablecost-effective,reliableandconsistentenergyaccess,promotionofenergy

efficienttechnologies,andincentivizetheeffectivedevelopmentanduseofdomesticenergyresources.Thepolicyalsoaimstosupportexpansionofrenewableenergysources.51

•TheElectricityAct,2007inwhichElectricityControlBoardlicensesonlyoperationsthatinvolveelectricitygeneration(solarandwind)and

transmission,withapprovedprojectsincludingtheestablishmentofnetworksforintegrationofpowerproductionandgreenhydrogenprocessingfacilities.52

•TheElectricityBill,2017andtheNamibiaEnergyRegulatoryAuthorityBill,2017(Underparliament’sreview),couldsignificantlyimpactthe

procurementandlicensingofpowergenerationprojects.53

•HarambeeProsperityPlanIIaimstofosterdevelopmentofrenewableenergyatscale,advancementofbusinessmodelsthatpromotelocal

sustainabledevelopmentgroundedinrenewableenergysources,and

mobilizationoffinancetoscaleupinfrastructureforrenewableenergyandgreenammoniaproduction.54

•NamibiaGreenHydrogenStrategyestablishesthegoalofpositioningNamibiaasaleadingglobalhydrogenproducerby2025.55

•SyntheticFuelsAct(Yettopass)aimstoprovidetransparentoversight

towardsorganizing,acquiring,andoverseeingfuturegreenhydrogenprojectsbuiltonstate-ownedpropertyanddetailonincentives,corporatetax

structures,royalties,andcompetitionlaws.56

•TheRepublicofNamibia

exercisesexclusivejurisdictionovernaturalresourcesand

componentsofthenatural

environmentwithinitsnationalboundaries57,58

•Establishmentofaspecial

economiczone(SEZ)and

expansionoftheWalvisBayPortcurrentlybeingevaluated59

•InMay2022,NamibialauncheditsfirstsovereignwealthfundcalledastheWelwitschiaFund60

12

Actualizingthegreenhydrogeneconomy|2.Legalpolicyframework

Geography

Existinglegalandpolicyframework

Enablers

Australia

•TheClimateChangeAct,2022embedtheParisAgreementandtargets

foundinthenationallydeterminedcontribution(NDC)intothenational

framework,withsubnationallegislationleadingthewayonclimatepolicy.61,62

•TheNationalElectricityLaw63NationalGasLaw64andtheNational

EnergyRetailLaw65arethreeoverarchinglawswhicharerelevanttothe

governanceofenergymarketsandhelpregulateaccesstonaturalgaspipelineservices(transmissionanddistribution).

•TheCleanEnergyFuturepackageandtheRenewableEnergytarget

(RET)policieshavefocusedonmateriallyreducingemissionsintheelectricitysector.66

•AmendmenttotheNationalGasLaw,2022regulationstofurtherblendingofhydrogenandderivativesunderthenationalframework.67

•Australia’sNationalHydrogenStrategy,2019providesanationalvisionforadvancementofadomesticcleanhydrogensector.68

•NativeTitleLegislationAmendmentBill2021providesindigenoustitleholdersastrongpositiontoinsistbestpracticeagreementsarenegotiated.69

•SouthAustralia

–ThePrincipalActamendedpetroleumandgeothermalregulationsmakinghydrogen,anditscompoundsandby-products,regulated

substances.70

•NewSouthWales

–NSW’shydrogenstrategy,2021supportsgreenhydrogen,withaplannedamendmentBilltargetingblendingofupto10%hydrogenandbiomethaneintonaturalgaspipelinesby2030,andalsoprovidesspecificexemptionsforelectricityusedintheproductionofgreenhydrogen.71

•NeedtoensurethattherightsofIndigenousAustralians

areadequatelyaddressedin

thecurrentframeworksfor

renewableenergyandhydrogendevelopment72

•InNSW,greenhydrogen

producersareexpectedtobe

abletoachieveoverUS$2perkgincostreductionsbycombiningrevenuefromcertificates

generatedunderthestate’s

RenewableFuelSchemeandelectricitychargeconcessions73

•TheHydrogenAccordbetweenAustraliaandGermanywas

signedinJune2021tohelp

facilitatestrategiccooperationinthisfield74

United

Arab

Emirates

(UAE)

•NationalEnergyStrategycollectivelypositionsanationaldrivetohelpachievenet-zeroemissionsby2050.75

•Masdarinitiativefocusesonthedevelopmentandmobilizationofinnovativetechnologiesreleatingtorenewableenergy,energyefficiency,carbon

managementandmonetization,watermanagementanddesalination.76

•TheNationalHydrogenS