Low-Carbon Hydrogen: A Key Piece for a Just Energy Transition

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The transition to a low-carbon economy is now imperative for the global community as a target for achieving the Sustainable Development Goals (SDGs) and Paris Agreement ambitions. Hydrogen has been identified as an essential tool for attaining decarbonisation targets across several aspects of global energy systems. However, developing countries that themselves can be most affected by climate change are under intense pressure to hold back developing their fossil fuel-based resources in favour of renewable energy systems and, where possible, explore the production of green and low-carbon hydrogen. This work explores the implication of low-carbon hydrogen development in ensuring a just energy transition for developing countries. Through a comprehensive review of relevant materials, the work identifies what role natural gas can serve in achieving the energy transition plans of many fossil fuel-rich developing economies and how, at a larger scale, the production of blue hydrogen from natural gas can help decarbonise hard-to-abate emissions. While green hydrogen is often touted as the ultimate goal for a sustainable hydrogen economy, it faces numerous challenges. The production of green hydrogen is currently more expensive compared to blue hydrogen, which is derived from natural gas with carbon capture and storage (CCS) technologies. This cost disparity makes it difficult for developing countries to adopt green hydrogen on a large scale, especially when they have abundant fossil fuel resources that can be utilised for blue hydrogen production. Moreover, the infrastructure for green hydrogen production and distribution is still in its nascent stages, requiring substantial investments that many developing countries may find prohibitive. In contrast, blue hydrogen can leverage existing natural gas infrastructure, making it a more feasible option in the short to medium term. In essence, while green hydrogen represents the ideal long-term solution for a low-carbon future, blue hydrogen offers a more immediate and practical pathway for developing countries to transition towards a sustainable energy system. This balanced approach ensures that these countries can contribute to global decarbonization efforts without compromising their economic development and energy security. The work aims to inform policymakers, scientists, and the public on the potential role of existing natural gas resources in critical decarbonisation points and their role in establishing a just energy transition for developing economies, while highlighting the financial and infrastructural limitations of green hydrogen adoption and calling for further research on context-specific pathways to hydrogen integration in national energy systems.

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February 2026

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