In 2015, representatives from 195 countries and the European Union signed the Paris Agreement to combat climate change. Over the following four years, the signing parties actively planned and acted to reduce carbon emissions and limit the rise in global average temperature. Among others, the Chinese government made extensive efforts to promote climate change mitigation. As a result, China’s 2018 carbon emission intensity (CO2 per unit of GDP) fell 45.8% from the 2005 rate, meeting the target of a 40 to 45% reduction by 2020 ahead of schedule.

However, since the Paris Agreement was signed, global greenhouse gas (GHG) emissions have steadily increased, and there is no indication that emissions have peaked or will peak in the coming years. To significantly reduce the impacts of GHG emissions on the environment and achieve global decarbonization, it is imperative to promote and transition to clean energy alternatives, on top of boosting energy utilization efficiency and reducing consumption of fossil fuels.

Hydrogen is seen as the green energy source with the highest potential in the 21st century. As a clean, efficient, and sustainable energy medium, hydrogen promises to become a key tool in the fight against climate change. Widespread use of water electrolysis based on renewable energy to produce hydrogen—which emits zero CO2 in both the production and consumption processes—is expected to be a decisive factor in achieving GHG reduction targets.

In addition to its industrial applications in petroleum refining, ammonia synthesis, and methanol synthesis, hydrogen has widespread use potential in sectors such as steel, transportation, and heating and cooling buildings. Due to its environmental friendliness and usability, the European Union, the United States, and Japan have taken measures to encourage hydrogen energy development, including setting out national hydrogen strategies, supporting hydrogen technology R&D, and fostering hydrogen supply and demand markets.

With recent investments from governments, industries, and research bodies into hydrogen energy and fuel cell R&D, many technological barriers to hydrogen development and deployment have been broken. However, the production, storage, transportation, and application of low-carbon hydrogen energy remain costly. Moreover, high costs for hydrogen-related technology R&D hinder innovation and the achievement of economies of scale. These challenges demand urgent attention.

Download the full report：A Shift to Clean Hydrogen in China and the World