The Green Hydrogen Puzzle: Towards a German Policy Framework for Industry

Lena Tholen, Anna Leipprand, Dagmar Kiyar, Sarah Maier, Malte Küper, Thomas Adisorn and Andreas Fischer
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Lena Tholen: Wuppertal Institute, Doeppersberg 19, 42103 Wuppertal, Germany
Anna Leipprand: Wuppertal Institute, Doeppersberg 19, 42103 Wuppertal, Germany
Dagmar Kiyar: Wuppertal Institute, Doeppersberg 19, 42103 Wuppertal, Germany
Sarah Maier: German Economic Institute, Konrad-Adenauer-Ufer 21, 50668 Cologne, Germany
Malte Küper: German Economic Institute, Konrad-Adenauer-Ufer 21, 50668 Cologne, Germany
Thomas Adisorn: Wuppertal Institute, Doeppersberg 19, 42103 Wuppertal, Germany
Andreas Fischer: German Economic Institute, Konrad-Adenauer-Ufer 21, 50668 Cologne, Germany

Sustainability, 2021, vol. 13, issue 22, 1-19

Abstract: Green hydrogen will play a key role in building a climate-neutral energy-intensive industry, as key technologies for defossilising the production of steel and basic chemicals depend on it. Thus, policy-making needs to support the creation of a market for green hydrogen and its use in industry. However, it is unclear how appropriate policies should be designed, and a number of challenges need to be addressed. Based on an analysis of the ongoing German debate on hydrogen policies, this paper analyses how policy-making for green hydrogen development may support industry defossilisation. For the assessment of policy instruments, a simplified multi-criteria analysis (MCA) is used with an innovative approach that derives criteria from specific challenges. Four challenges and seven relevant policy instruments are identified. The results of the MCA reveal the potential of each of the selected instruments to address the challenges. The paper furthermore outlines how instruments might be combined in a policy package that supports industry defossilisation, creates synergies and avoids trade-offs. The paper’s impact may reach beyond the German case, as the challenges are not specific to the country. The results are relevant for policy-makers in other countries with energy-intensive industries aiming to set the course towards a hydrogen future.

Keywords: green hydrogen; climate-neutral industry; carbon dioxide emissions; policy package; multi-criteria analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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