[Haichuan Hydrogen Energy] The emerging clean hydrogen market is set to create a global market worth $1.4 trillion by 2050
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According to a Deloitte report, the emerging clean hydrogen market presents significant opportunities for sustainable growth, with a global market value of $1.4 trillion by 2050, including approximately $280 billion in inter-regional trade. Jin Lingyun, head of Deloitte’s Global China Services, noted that there is significant potential for asset financing in many segments of the hydrogen energy value chain, and it is an opportune time for the financial industry to get involved in the development of hydrogen energy. Currently, the time is ripe for the hydrogen industry to expand its international investments, and for domestic banks that invest in strategic projects overseas, ESG (environmental, social, governance) and renewable energy have gradually become key business opportunities. The report states that by 2050, over 65% of the market will be in developing and emerging economies, and it will create as many as 1.5 million jobs per year between 2030 and 2050, with the majority of these jobs located in the Asia-Pacific region. David Hill, CEO of Deloitte Asia-Pacific, said: Clean hydrogen has the potential to offer a unique opportunity for developing countries to advance toward a low-carbon future, while also fostering economic growth and sustainable development.
The report calls on global leaders to seize the opportunities presented by green hydrogen to rapidly decarbonize while investing in sustainable technologies. The report recommends that policymakers focus on three key components: formulating ** and regional strategies to provide credibility to the market ； Establish clear goals and markets for clean hydrogen-based products ； Provide incentives or subsidies and diversify the value chain to help reduce costly bottlenecks. The report states that by 2050, cumulative investment in the global clean hydrogen supply chain will exceed $9 trillion to help achieve net-zero emissions. Deloitte states that once these policies are implemented and industries around the world develop, clean hydrogen could reduce cumulative carbon dioxide emissions by up to 85 billion tons by 2050 – more than twice the global carbon emissions in 2021. Lin Chenghong, partner in Deloitte China’s financial advisory practice focused on the hydrogen industry, suggests that China should accelerate the development of hydrogen refueling infrastructure, increase investment in the construction of hydrogen pipelines, and eliminate uncertainties surrounding subsidies for low-carbon hydrogen. These measures will help reduce energy costs, attract long-term investment, and further promote the growth of China’s green hydrogen industry. Furthermore, policies to further tighten carbon emission constraints and strengthen the development of a national carbon trading market are equally important. The development of the hydrogen energy industry is a systematic endeavor; it is not possible to establish a relatively complete hydrogen energy industry framework merely by having the various companies along the industrial chain show off their capabilities. To a large extent, the commercialization of hydrogen energy requires coordinated development across the upstream, midstream, and downstream sectors of the industry. Therefore, it is necessary to strengthen partnerships between upstream and downstream entities, make full use of their respective advantages, and work together to promote the coordinated development of the hydrogen energy industry chain.