Global Clean Hydrogen Investments Pass $110 Billion, China Leads

The clean hydrogen sector is rapidly expanding, with over $110 billion committed across 510 projects globally, reflecting a 46% investment increase despite some project cancellations and delays, according to the Hydrogen Council's 2025 report developed with McKinsey. China leads in investment and operational green hydrogen capacity, while challenges remain in the U.S. due to federal tax policies that are less supportive than previous measures, hindering green hydrogen's growth amid limited renewable energy availability. In California, a proposed bill to exempt hydrogen fuel from certain taxes aims to promote hydrogen adoption but faces criticism from environmental groups who argue that hydrogen production is still largely fossil fuel-based and that electric vehicles are a cleaner alternative. On the international development front, the UNDP report emphasizes the need for a balanced approach to green hydrogen, advocating a framework that aligns hydrogen strategies with human development goals—focusing on people, planet, and prosperity—to ensure equitable growth, environmental protection, and economic diversification. This approach stresses inclusive governance, environmental safeguards, and local economic integration to avoid reinforcing inequalities or environmental harm. Overall, while green hydrogen holds promise for decarbonizing hard-to-abate sectors, its success depends on clear policy support, sustainable practices, and addressing market and social challenges worldwide.