UNIDO and HINICIO study at COP29 reveals the 16 most innovative developing countries set to drive the global hydrogen market
World leaders gathered in Baku, Azerbaijan, for the annual United Nations Climate Conference, COP29. This event brings together governments, businesses, and civil society representatives to promote concrete solutions to the global climate crisis.
Within this context, HINICIO and UNIDO presented a comprehensive market assessment focused on clean hydrogen in developing countries, as part of UNIDO’s Accelerate-to-Demonstrate Facility (A2D) initiative. The study analyzed key stakeholders and driving factors for clean hydrogen development, identifying challenges and opportunities in these economies.
According to the Development Assistance Committee (DAC) list, there are currently 141 developing countries. The analysis revealed that clean hydrogen technologies are actively being implemented in 35 countries across five continents, with 114 projects in total. Of these, 41% focus on hydrogen production, 23% on mobility projects, 11% on ammonia production, and less than 5% on hydrogen technologies for the cement, iron, and steel industries.
By region, Latin America and the Caribbean host 36% of the projects, Asia 29%, and Africa 25%. In these three regions, most projects are primarily geared toward clean hydrogen production technologies.
Additionally, over 200 institutions, companies, and innovative organizations were identified in these countries, particularly in Asia, where nations like China and India lead in research and development initiatives, followed by countries in Latin America and the Caribbean such as Brazil, Costa Rica, and Colombia. However, while many projects are spearheaded by educational institutions, the industrial sector is reaching higher Technology Readiness Levels (TRLs), testing and adopting technologies at TRLs 6-9.
Amid so many advancements and achievements, a key question arises: What are the main challenges innovators in these countries face in scaling their technologies and reaching higher levels of technological readiness?
The most notable challenges include:
- Financial support
- Lack of binding regulations
- Insufficient infrastructure
- Absence of off-takers
- Limited availability of advanced technologies
- Lack of skilled human resources
- Social and cultural resistance in some cases
By region, Latin America and the Caribbean host 36% of the projects, Asia 29%, and Africa 25%. In these three regions, most projects are primarily geared toward clean hydrogen production technologies.
On the other hand, at the national and regional levels, key strategies are being implemented to foster the development of a clean hydrogen industry. While progress is notable, significant challenges remain. In this context, what are developing countries doing to promote this industry and overcome the obstacles they face? At the regional level, what efforts are being made to strengthen the ecosystem and encourage integration among countries?
In the analyzed countries, national initiatives focus on public policies and regulatory development. Key steps include implementing certification systems in China and Brazil, as the CertHiLAC scheme in 12 Latin American countries.
Additionally, notable initiatives include the planning of hydrogen hubs in 15 countries and efforts to strengthen regulatory frameworks, with key examples in Brazil, Egypt, India, and Morocco.
At the regional level, international cooperation has become a key pillar in developing the clean hydrogen market. Its initiatives often focus on prefeasibility studies, the design of regulatory frameworks, and technical and financial assistance. Countries such as Brazil, China, India, Morocco, and South Africa are currently receiving most of the support from international cooperation.
However, challenges persist in key areas such as insufficient infrastructure for exports, gaps in critical segments of the hydrogen value chain (particularly in transportation and storage), and limited coordination and technological exchange between countries.
Notable initiatives include the planning of hydrogen hubs in 15 countries and efforts to strengthen regulatory frameworks, with key examples in Brazil, Egypt, India, and Morocco.
The presence of demonstration projects for innovative clean hydrogen solutions, a national roadmap, and a dedicated partnership for this resource are key factors in developing a competitive clean hydrogen ecosystem. However, only 47 of the 141 developing countries analyzed meet at least one of these criteria. By evaluating key aspects such as projects and innovation, financing mechanisms, hydrogen partnerships, roadmaps, and international collaborations, 16 countries were identified as leaders in clean hydrogen innovation within this group.
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UNIDO and HINICIO study at COP29 reveals the 16 most innovative developing countries set to drive the global hydrogen market, source
