Hydrogen Development: Legal Challenges And Current Trends

Abstract

Hydrogen is emerging as a crucial element in the global transition to sustainable energy, offering a viable alternative to fossil fuels. Its potential to decarbonize hard-to-abate sectors such as heavy industry, transportation, and power generation has driven significant investment and policy development worldwide. However, hydrogen’s widespread adoption faces legal, regulatory, and economic challenges. This article explores these issues, focusing on production methods, certification schemes, safety regulations, intellectual property disputes, and infrastructure development. A major concern is the classification of hydrogen based on production methods, from carbon-intensive gray and brown hydrogen to low-carbon blue and renewable-based green hydrogen. While green hydrogen is the most sustainable, its high costs and infrastructure requirements hinder large-scale deployment. Regulatory inconsistencies, market fragmentation, and safety concerns further complicate hydrogen’s growth. The study examines global legal frameworks, highlighting national and regional strategies, including the European Union’s hydrogen policies, the United States’ Hydrogen Earthshot initiative, and hydrogen governance in China, Japan, and emerging economies. It also assesses international cooperation efforts, such as standardizing certification schemes and cross-border hydrogen trade. Technological advancements, including improved electrolysis efficiency, fuel cells, and large-scale hydrogen storage, are evaluated for their role in reducing costs and enhancing feasibility. Finally, this article provides a comprehensive analysis of the evolving hydrogen landscape, emphasizing the legal and policy mechanisms needed to facilitate a just, efficient, and sustainable hydrogen economy that contributes to achieving global net-zero targets.