From incentives to mandates: policy levers that drive hydrogen adoption

Accelerating the hydrogen market is a formidable challenge, one that parallels the maturation trajectories of sectors like liquefied natural gas (LNG) and solar. Demand-pull strategies, such as the requirement for a certain percentage of hydrogen used in specific sectors to be green, can fuel demand and encourage investment in production facilities. At the same time, policy mandates can reduce investment risks by establishing clear targets and regulations – factors that are particularly important in the early stages of technology development and infrastructure expansion. Additionally, subsidies, tax credits and carbon pricing mechanisms can be leveraged to reduce the green premium of hydrogen production. For instance, the section 45V Clean Hydrogen Production Tax Credit implemented as part of the U.S. Inflation Reduction Act may have been one of the most competitive incentives globally, but it remains to be seen whether administration-related changes will impact its roll-out. In any case, effective policy mandates have the potential to significantly accelerate the transition to adopting hydrogen as a clean energy carrier.     

Attendee insights: 

Understand the delicate balance between policy-driven demand and organic market growth. Join the conversation around strategic frameworks that align regulatory actions with industry investments and technological advancements.