Steve Capanna is policy director and Owen Zinaman is senior advisor for Crux Alliance.
Just a few years ago, green hydrogen looked set to become a central pillar of the global energy transition. Governments across the world rolled out sweeping hydrogen strategies, while companies pitched billion-dollar projects to use clean hydrogen throughout the economy.
But the realities of green hydrogen costs, exacerbated by high interest rates and supply chain constraints, have undermined these plans.
Meanwhile, the US – which had among the most ambitious suites of hydrogen policies under the Biden Administration – has reversed course, scaling back its clean hydrogen production incentive, freezing funds for green hydrogen hubs, and cutting the vast majority of federal hydrogen research and development funding. As a result, a number of planned projects have now been canceled.
Clean hydrogen is experiencing growing pains elsewhere too, with several major production projects in Australia and Europe scrapped or indefinitely postponed. Demand for green hydrogen is increasingly uncertain as well, with manufacturers like steel giant ArcelorMittal backing away from plans to use green hydrogen.
Some ‘no-regrets’ uses remain
Reading the headlines, it can seem like hydrogen has no future as a climate solution.
And yet, while green hydrogen may not be an emissions panacea, climate and energy experts are clear: it remains a crucial tool to cut carbon in some key areas of the economy.
“It’s critical to not throw the baby out with the bathwater,” says Nikita Pavlenko, programs director for fuels and aviation at the International Council on Clean Transportation. “Now is the time for sober consideration of projects that supply the no-regrets uses of hydrogen necessary for long-term decarbonization, whether for the handful of industries with few alternatives or in long-haul shipping and aviation.”
And for those countries that invest in green hydrogen development now, there could be economic as well as environmental rewards.
Not all hydrogen is created equal
Hydrogen currently plays a niche but important role in the global economy. Nearly 100 million metric tons of hydrogen are produced worldwide each year, largely for use in oil refining and to make ammonia and methanol – feedstocks for fertilizers and industrial chemicals. And most of this hydrogen is produced using methane gas, contributing roughly 2% of global greenhouse gas emissions.
But there are other, cleaner ways to produce hydrogen.
“Blue” hydrogen still relies on natural gas but includes equipment to capture some of the carbon emissions released at the production facility. This could significantly lower on-site emissions – although not entirely.
However, it would do nothing to reduce methane and CO2 leaks from natural gas fields or pipelines, which an established body of evidence suggests have been systematically underestimated and are often not accounted for in many existing regulations anyway. Put together, this means blue hydrogen is likely much more polluting than is often claimed.
That’s why clean energy experts view “green” hydrogen as the best option for cutting emissions.
Green hydrogen is produced via a process called electrolysis, in which electricity is used to split hydrogen from water, leaving only oxygen as a byproduct. This process can be emissions free – but only if the electrolysis is powered by new clean electricity resources that are physically deliverable on an hourly basis to the hydrogen production facility.
A narrow but necessary path for green hydrogen
Still, scaling green hydrogen is easier said than done. Green hydrogen remains a nascent technology and costs roughly two to three times more than conventional hydrogen produced from natural gas. Costs are expected to decline as production scales, but only if electricity costs and interest rates are kept in check – which, recently, has not been the case.
But there is good news: experts argue that green hydrogen will only be needed in a few specific parts of the economy.
“Given the heavy energy losses in making hydrogen, it will almost always be cheaper and smarter to use electricity directly,” says Katherine Dixon, executive director of the Regulatory Assistance Project (RAP). “Heat pumps are the best example: they cut energy demand dramatically compared to gas, while hydrogen for heating would multiply it.”
And as other technologies get cheaper, the number of applications where green hydrogen is a necessary decarbonization tool will only shrink.
‘Hard-to-abate’ sectors need hydrogen
Still, in a net-zero economy, absent unforeseen technology innovations, we are going to need a lot more green hydrogen in the future – roughly four to six times more than all of the hydrogen used today, and many orders of magnitude more than current green hydrogen production.
Why? Because there remain many non-electrifiable sectors of the economy where no other viable decarbonization tool exists besides hydrogen, such as steel production, where hydrogen serves as a clean alternative to coal-based coke for processing iron ore.
“Green hydrogen will be critical for decarbonizing applications that have thus far been referred to as ‘hard-to-abate’, such as in the chemicals or steel industries,” says Julia Metz, director of Agora Industry.
Additionally, experts don’t yet foresee a path for battery technology to work for long-distance shipping or long-haul flights, both highly polluting industries, so green hydrogen and fuels made from green hydrogen will likely be necessary for those uses too.
Boosting demand to support long-term investment
Given the cost premium of green hydrogen, strong incentives will be needed to make using it in industry, aviation or shipping an economically viable choice while driving down costs for the future.
To date, countries have largely focused on policies like tax credits that encourage production of clean hydrogen or government investments in green hydrogen production and equipment manufacturing facilities.
EU backs North Africa hydrogen pipeline, but is it a green dream?
But scaling hydrogen requires demand-side policies as well. Indeed, we’re seeing planned projects and investments stall for lack of committed buyers. Stable demand-side policies, which can include contracts for differences (government financing for the higher cost of green hydrogen), requirements for a set percentage of hydrogen consumption to be green for certain sectors, and sectoral emissions limits, can help provide that long-term investment certainty.
Absent such policies, new clean hydrogen production projects have largely proven too risky.
How green is green enough?
Policymakers must also ensure they are only incentivizing truly clean hydrogen. Hydrogen produced with electricity largely generated by coal, for instance, can be considerably dirtier than conventional hydrogen production.
How to measure hydrogen emissions has been the source of robust debate in the European Union (EU), US, and elsewhere. Fossil fuel companies have argued for more lenient standards about what counts as clean. They have also supported using hydrogen in parts of the economy that could be more easily and cheaply electrified, distracting from efforts to electrify quickly.
For a region like the EU, which is poised to be an importer as well as a producer of green hydrogen, stricter standards can help ensure truly low-carbon hydrogen production around the world.
China, for instance, has developed its clean hydrogen production with an eye towards meeting the EU standards. China is also placing major bets on the green hydrogen market, as it represents roughly 60% of global electrolyzer production.
This investment is beginning to drive down equipment costs, which could help make green hydrogen more commercially viable. It could also give China a long-term competitive edge in the global market.
Smart policies create economic opportunity
However, other countries with abundant, low-cost renewable energy resources are also recognizing the potential of green hydrogen as both an export opportunity and a way to reduce reliance on volatile natural gas imports.
For instance, India’s Green Hydrogen Mission targets the production of 5 million tonnes of green hydrogen by 2030, and Brazil has an official goal to be the most competitive low-carbon hydrogen producer by that same year.
To fully capture the economic opportunity, new hydrogen producers will need to ensure their output meets international environmental standards while building up those domestic industries that require green hydrogen to cut emissions, ensuring more economic benefits are realized domestically.
“Governments play a key role in driving innovation that creates economic opportunities across the value chain,” says Metz of Agora Industry. “By supporting green hydrogen investment and adopting targeted industrial policies, they can strengthen resilience while advancing climate and industrial progress.”
It’s time for hydrogen sobriety
The hydrogen bubble has burst. But despite the dire headlines, we cannot achieve global climate goals without some amount of truly clean hydrogen.
If the last few years were dominated by hydrogen hype, we need the future to be dominated neither by hype nor nihilism, but by a sober focus on designing policy to build demand for green hydrogen in the few, important sectors where it’s really needed.
Let’s hope the era of hydrogen sobriety has finally arrived.
The post Hydrogen beyond the hype: The green fuel’s narrow but crucial role in a decarbonized economy appeared first on Climate Home News.
Hydrogen beyond the hype: The green fuel’s narrow but crucial role in a decarbonized economy
Climate Change
Pawa in Palau
This week our powerful Pacific team is in Palau for the Pacific Islands Forum Leaders Meeting. This is a major moment in our campaigns for Pacific climate justice and to stop deep sea mining. So what’s it all about, what can we expect over the coming days, and why is this year’s meeting in particular so important? Read on to find out!
*Pawa is Melanesian word meaning collective power.
Meet Moemoana Schwenke, our Pacific Climate Campaigner
“When you love something deeply, you do everything you can to protect it.”
What is the Pacific Islands Forum (PIF)?
The Pacific Islands Forum, or ‘PIF’, is our region’s most important political organisation. It is where countries of the Pacific — including Australia and New Zealand — come together to collaborate on shared challenges and to set collective goals.
The PIF Leaders Meeting is an annual weeklong event that includes a dedicated meeting of the Pacific’s small island developing states (PSIDS), many special side events organised by Pacific civil society, the leaders’ meeting itself, and more. At the end of the week, leaders issue a Forum Communiqué, capturing what they have agreed on, their shared priorities and the actions they will take together.
This year’s meeting is being held in the beautiful northern Pacific nation of Palau, the same place our Pacific team gathered back in January to plan for the year.

What’s at stake this year?
Climate change has dominated the PIF for decades. Pacific leaders have been crystal clear it is their number one priority, and the annual gathering is the moment they can exert maximum pressure on Australia over its fossil fuel record.
The voyage to COP31
This year’s meeting comes less than three months before COP31, where Australia will take on the role of President of Negotiations — a role it has committed to undertaking in partnership with the Pacific — and less than a month before the ‘Pacific Pre-COP’, to be held in Fiji and Tuvalu.
Following a fraught round of mid-year negotiations in Bonn, PIF leaders will need to set out a clear vision and priorities for COP31. These include accelerating a just global transition away from fossil fuels, defending science as the foundation of international climate cooperation, and increasing the availability and accessibility of finance for renewable energy and climate adaptation.

Accountability for Australian fossil fuel exports
Since the last PIF Leaders Meeting, Australia has signed the Belém Declaration on the Transition Away from Fossil Fuels. The declaration reaffirmed the legally binding commitment to help limit global warming to 1.5°C and recognised that this is incompatible with new fossil fuel production. Yet, Australia has continued to approve new coal and gas projects, including at least five since the last PIF Leaders Meeting.

What is Greenpeace doing?
We’re going big this year, taking six members of our team to Palau to support Pacific leaders to hold the line, hold Australia accountable, and show the world what’s at stake. We’ll lobby leaders, hold press conferences, share our messages with the world, and support our incredible local partners in Palau.

How can you get involved?
PIF is the first in a drumbeat of major moments where we’ll be carrying the voices of the Pacific to the world. Come October we’ll be voyaging to Fiji on our ship Oceania for the Pacific Pre-COP, and in November we’ll be off to Antalya for the world’s climate negotiations (COP31).
Learn more about the Pacific way to a fossil fuel free future by checking out our report and exhibition.
Follow our journey, and check back here for more ways to join the movement for climate justice. Together we have the pawa!
Climate Change
From firefighting to future-proofing: Preventing wildfires must be the priority
Gill Einhorn is head of the Forest Future Alliance and Natalie Çilem is community lead of the Global Wildfire Leadership Network.
Wildfires have devastated communities across the world this summer, claiming lives, displacing thousands of people and leaving billions in economic damage in their wake. In Europe alone, wildfires have already caused an estimated €19 billion in losses this year.
They are an economic, financial and public health challenge that is growing faster than many governments and markets are prepared for – and exposing the real costs of poor land management.
A system built for recovery, not resilience
Far more money is currently spent responding to the disastrous effects of wildfires than preventing them in the first place. The United Nations Environment Programme estimates that more than half of wildfire-related spending goes towards response, while planning receives only around 0.2 percent. This problem is not limited to wildfires; over 95 percent of disaster aid between 2005 and 2017 was allocated to response, and less than 4 percent was directed towards prevention or preparedness.
Forests are critical, but without investment in how land is managed and protected, their value is neither stable nor guaranteed. Protecting forests requires investing not only in conservation, but in the conditions that keep forests standing.
Each dollar invested in wildfire-resistant construction could save around $210 in avoided future economic losses, according to a report by the World Economic Forum and Forest Future Alliance. Despite this evidence that prevention can significantly reduce future costs, wildfire resilience remains chronically underfunded.
This spending discrepancy is creating significant challenges for insurers, asset owners and financial institutions. Global insured losses from natural catastrophes reached $107 billion in 2025, with wildfires, floods and storms accounting for 92 percent of claims.
In this context, insurers are reassessing where and how they are willing to underwrite risk. Around 56 percent of global wildfire losses between 2000 and 2023 were uninsured. In some high-risk areas, insurers are scaling back coverage altogether, leaving homeowners, businesses and governments to shoulder a growing share of the costs – making it increasingly difficult to break even.
Proven solutions are already paying off
In many regions, wildfires are driven not by natural causes but by the deliberate clearing of land for agriculture. Degraded landscapes are becoming drier, more flammable and increasingly vulnerable to catastrophic loss, creating a vicious cycle of deforestation, economic damage and rising emissions.
The answer is not simply stronger firefighting capacity. Governments, investors and businesses must work together to shift capital upstream into prevention, resilience and long-term landscape stewardship of healthy forests. That means planting appropriately, investing in heat-resistant species, exploring approaches that minimise fire footprints through active management, and exploring the AI and technology solutions that are burgeoning.


Solutions to this already exist and are proven to have an impact. Following devastating wildfires year-on-year, Portugal shifted its approach to wildfire management, increasing prevention spending within its national rural fire management system from around 20 percent in 2017 to approximately 60 percent in 2022. While many countries remain locked in a reactive cycle of disaster response, public policy can shift investment upstream and make resilience a priority before fires occur.
Indigenous communities have long used proactive land stewardship to reduce wildfire risk while supporting healthy and productive landscapes. For example, the Cheslatta Carrier Nation in British Columbia traditionally managed fuels through cultural fire practices but now implements mechanised fuel removal methods under commercial agreements. By combining Indigenous stewardship with sustainable forest management, Cheslatta is generating community benefits while also boosting wildfire prevention.
Resilience can also be strengthened through finance and technology. FireSat, a partnership led by Earth Fire Alliance with Google.org, the Gordon and Betty Moore Foundation and Muon, is a satellite constellation designed for rapid wildfire detection. Scanning every 20 minutes, it can detect fires 400 times smaller than current systems and track them through smoke and darkness in almost real time. In California alone, FireSat could prevent up to 350,000 acres from burning each year. It has recently received significant new investments allowing it to expand towards a constellation of more than 50 satellites that will monitor every point on Earth every 20 minutes or less.
In Brazil’s Pantanal, the Embrace the Forest initiative uses AI-powered detection towers across 2.5 million hectares to support earlier intervention and faster response. During the severe 2024 fire season, the initiative contributed to a 40 percent reduction in burned area compared to 2020.


These examples illustrate what is possible when resilience is treated as an investment priority rather than a recovery cost. But we must ensure funding for these measures is scaled before disaster strikes. Initiatives like the Global Wildfire Leadership Network (GWLN) are key, bringing together corporate decision-makers, investors, insurers, governments and Indigenous leaders to direct investment towards prevention and align finance, technology and stewardship to protect nature, safeguard communities and strengthen future economic stability. With a goal of doing more together than the sum of our parts, the network focuses on Forest Future Alliance GWLN Solutions Labs – where partners sign up with the intent to collaborate.
Rewarding prevention
Financial incentives must be created that reward prevention. This can be done by scaling public-private partnerships, supporting long-term landscape stewardship, investing in community capacity including Indigenous wisdom and technology. Ultimately, our terrestrial natural reserves are critical infrastructure that support resilient economies and thriving communities.
One in three people are dependent on forest services, goods and economic opportunities for survival, so it’s in all our interests to protect what we have. Forests support cooling, water and food security – and are a very cost-effective way of removing carbon dioxide from the atmosphere, where done appropriately.
UN chief warns climate crisis “in overdrive” as El Niño threatens to fuel the fire
No sector can solve this challenge alone. The benefits of wildfire resilience are shared across communities, governments, insurers, investors, utilities and businesses. A single intervention can protect homes and livelihoods, reduce insurance claims, secure water supplies and lower future public costs. Because the benefits are shared, the solutions must be too. Coalitions of actors can take proven approaches further than any one individual or organisation could alone.
As wildfires continue to burn at an unprecedented scale, the opportunity now is to roll out solutions, shift investment upstream and build a future where resilience, rather than recovery, becomes the foundation of thriving economies.
The post From firefighting to future-proofing: Preventing wildfires must be the priority appeared first on Climate Home News.
From firefighting to future-proofing: Preventing wildfires must be the priority
Climate Change
Guest post: Why tough methane cuts are crucial for keeping warming ‘well-below’ 2C
Methane is a powerful greenhouse gas and the second-largest contributor to global warming after carbon dioxide (CO2).
Methane traps heat in the atmosphere more efficiently than CO2, but has a significantly shorter lifespan, fading after just a few decades.
Therefore, reducing emissions of methane – a gas primarily produced by agriculture, fossil fuels and waste management – is a powerful option for limiting global warming in the near-term.
Yet climate strategies and models often only focus on CO2, or combine all greenhouse gases into one metric known as “CO2 equivalent”.
The latter approach makes reducing methane emissions dependent on modelling choices and assumptions about the “equivalence” of methane and CO2.
It hides the opportunities and challenges linked to methane’s high warming and short lifetime.
In a new study, published in Communications Earth & Environment, we offer a different perspective that “decouples” CO2 and methane reduction and takes global warming limits as a starting point for determining the required level of methane cuts.
We show that, even under the most ambitious existing national net-zero targets, an absence of methane reduction leads to peak warming that exceeds 1.85C above pre-industrial levels.
The study highlights that, to limit peak warming to well-below 2C, net-zero CO2 targets must be complemented by stringent methane emissions cuts.
CO2 equivalent
How much methane corresponds to one tonne of CO2?
The question is as difficult to answer as: ‘how much spaghetti equals a chicken?’ You could compare the two meals according to their calories, protein content or cost. Each metric can be convenient, but is only valid for that specific comparison – no amount of spaghetti is the same as a chicken.
The same is true for the conversion of emissions of methane and other gases to CO2-equivalent emissions. It can be convenient, as it allows different gases to be compared or combined into a single number. This is why the metric is used in climate targets or evaluating the effectiveness of different mitigation options.
But, because methane and CO2 have different atmospheric lifetimes and warming properties, any conversion is only valid for a chosen time horizon and a chosen baseline.
Depending on the assumptions baked into calculations, methane mitigation can either appear as an immediate priority or framed as almost unnecessary.
There are a number of metrics that scientists use to convert greenhouse gases – whether methane, hydrofluorocarbons or nitrous oxide – into CO2-equivalent emissions:
- “GWP20” measures how much heat a greenhouse gas traps in the atmosphere over a 20-year period, relative to CO2. It emphasises urgent methane mitigation but has been criticised for its implicit discounting of future damages.
- “GWP100” looks at a 100-year timeline. It gives more weight to long-term warming and is used in “integrated assessment models” (IAMs) used by scientists, national emission reporting to the UN and by the GHG Protocol used by companies.
- “GWP*” considers the rate of emissions, rather than warming over a fixed time horizon. Under GWP*, very limited methane reductions bring CO2-equivalent emissions to zero, meaning remaining methane emissions can be designated as causing “no additional warming”. (This interpretation remains controversial as it assumes the continuation of historical levels of warming.)
IAMs are the tools used to generate future emissions scenarios. Because they combine CO2 and methane emissions, the impact of methane emission cuts alone is difficult to isolate in existing emission scenarios.
IAM-generated scenarios also assume mitigation decisions driven by costs. Combinations of CO2 and methane emission pathways that are not purely cost-effective are, therefore, not represented, even though climate policy is messy and emission pathways are rarely cost-effective in the real world.
Only a few countries – including Japan, Mexico and South Korea – specify methane mitigation targets.
A different approach
In our study, we separate CO2 and methane emissions and treat them as independent.
Instead of choosing a conversion method, we suggest that states and organisations set a limit on peak global warming first, then, based on their existing net-zero targets, determine the minimum compatible methane reduction target.
Companies and countries around the world have set net-zero targets focused on CO2, as well as those that include all greenhouse gases. As a result, our research looks at the necessary methane reductions for both types of goal. We consider scenarios where companies or countries deliver linear – in other words, steady – emissions reductions to reach net-zero.
Using a simple climate model, we systematically combined methane and CO2 (or greenhouse gas) mitigation pathways starting in 2025 and calculated peak warming.
The figure below shows how peak warming depends on both the year of reaching net-zero CO2 and the level of methane cuts.
The blue arrows in the figure show that to limit warming to 1.7C under a 2050 net-zero CO2 scenario, methane emissions would need to fall by at least 69% by 2050, relative to 2020.
Our research also finds that, if an organisation or country’s 2050 net zero-target covers all greenhouse gases, its methane emissions would need to fall by 63% instead.
However, under current policies, methane emissions are expected to increase by around 20% by 2050, relative to 2020. We find that this pathway would result in peak warming above 2C by 2050 – even if global CO2 emissions were to reach net-zero by that date (see purple bar on the right-hand side of the figure above).
The figure also shows how, if methane emissions remained at 2020 levels and net-zero CO2 was delivered by 2040 or later, warming would exceed 1.85C. This level of warming is above what has been argued as consistent with the Paris Agreement’s “well-below” 2C limit.
Conversely, cutting methane emissions by around one-third – in line with the Global Methane Pledge target for 2030 – could reduce peak warming by 0.15C, of which 0.05C could be delivered by interventions that come at no net cost. These are shown by the orange and red bars, respectively, on the figure above.
The table below highlights the minimum compatible methane cuts for three different peak warming levels and net-zero CO2 or greenhouse-gas emission targets.
| Peak warming | Year of net-zero CO2 emissions | Year of net-zero greenhouse-gas emissions | ||||
| 2050 | 2060 | 2100 | 2050 | 2060 | 2100 | |
| 1.7C | -69% | – | – | -63% | – | – |
| 1.8C | -32% | -56% | – | -11% | -47% | – |
| 2C | +8% | -8% | -83% | >50% | +33% | -78% |
Minimum methane emission reductions between 2020 and the year of net-zero emissions, consistent with peak warming of 1.7C, 1.8C, and 2.0C at 50% likelihood, assuming linear emission trajectories. For some net-zero targets and peak warming levels, there are no compatible methane mitigation targets (indicated by “–”).
Remaining carbon budget
The global carbon budget refers to the amount of cumulative CO2 emissions allowable while still meeting a particular global warming threshold.
The 2021 climate science report from the Intergovernmental Panel on Climate Change (IPCC) and a 2023 Nature study estimated that, by 2025, the remaining carbon budget for holding warming to 2C would be around 1,000-1,150bn tonnes of CO2 (GtCO2).
We find that these estimates are founded on the assumption of methane reductions of 27-35% by 2050, relative to a 2020 baseline. (A 2024 Communications Earth & Environment study reached similar conclusions.)
Under the GWP* metric, where methane emissions are only cut to maintain “no additional warming”, the remaining carbon budget would be constrained. The best estimate of a 2C budget shrinks by around 30% to approximately 750GtCO2.
Finally, if methane emissions are not cut at all in the future, our findings suggest that the remaining carbon budget for 1.7C of global warming has, in effect, already been exhausted.
Our analysis shows how peak warming depends on both CO2 and methane reduction – and how methane-specific targets can help refine existing net-zero targets.
Crucially, we show that complementing net-zero CO2 targets with stringent methane cuts is necessary to limit peak warming to well-below 2C.
Weber, K. et al. (2026) Limiting warming by CO2 and methane mitigation in an expanded scenario space, Communications Earth & Environment, doi:10.1038/s43247-026-03832-1
related
Guest post: France’s June heatwave caused more than 2,700 heat-related deaths
Guest post: Climate change has caused one-fifth of Pine Island glacier retreat
Q&A: What change of power in Colombia could mean for world’s fossil-fuel transition
Guest post: How US renewable-energy growth persists despite federal policy uncertainty
The post Guest post: Why tough methane cuts are crucial for keeping warming ‘well-below’ 2C appeared first on Carbon Brief.
Guest post: Why tough methane cuts are crucial for keeping warming ‘well-below’ 2C
-
Climate Change1 year ago
Guest post: Why China is still building new coal – and when it might stop
-
Greenhouse Gases2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Greenhouse Gases1 year ago
Guest post: Why China is still building new coal – and when it might stop
-
Climate Change2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Climate Change2 years ago
Bill Discounting Climate Change in Florida’s Energy Policy Awaits DeSantis’ Approval
-
Renewable Energy10 months agoSending Progressive Philanthropist George Soros to Prison?
-
Greenhouse Gases1 year ago
嘉宾来稿:探究火山喷发如何影响气候预测
-
Carbon Footprint2 years agoUS SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits

