This section describes the methodology used for the chapter “International financial initiatives and co-ordination mechanisms for clean hydrogen”, composed of two different parts. Part 1 focuses on a mapping exercise of the financial initiatives conducted by international financial actors for clean hydrogen development in Emerging Markets and Developing Economies (EMDEs). Part 2 addresses the co-ordination mechanisms that are available for international financial actors across the whole hydrogen value chain, and studies how these can be harnessed to create better alignment and collaboration between them.
Leveraging De‑Risking Instruments and International Co‑ordination to Catalyse Investment in Clean Hydrogen
The mapping exercise of the key international initiatives identified in the existing hydrogen landscape is based on a consultation with experts from international financial institutions (IFIs), who are actively engaged in the development of clean hydrogen. The consultation was based on an expert survey with the aim to identify the financial initiatives carried out by the abovementioned stakeholders, and the co-ordination mechanisms used between them. The questionnaire was distributed to approximately and answers were collected over a period of one month. A total of 12 stakeholders provided insightful responses to the questionnaire, coming from different types of IFIs, including Multilateral Development Banks, Development Finance Institutions, Export Credit Agencies (ECAs) and investment funds.
The consultation was complemented with bilateral discussions with specific financial institutions which provided detailed information and understanding regarding their activities driving clean hydrogen financing in EMDEs.
The survey was composed of two sections. The first one aimed at providing an overview of the international financial initiatives and actors across the hydrogen value chain. Respondents were requested to indicate the areas of work, financial activities and steps of the clean hydrogen value chain they were most active in through a matrix table.
The following areas of work were considered:
Research/Analysis (related to finance and investments)
Direct investment in projects
Implementation of de-risking mechanisms
Capacity-building activities
Policy and regulatory support
Co-ordination of financing initiatives
The steps of the value chain contemplated were:
Upstream: Electrolysers manufacturing
Upstream: Renewables and other resources
Midstream: Hydrogen production
Midstream: Storage
Midstream: Transport and distribution
Downstream: Hydrogen consumption
Downstream: Green products
Downstream: Exports
The second section of the survey addressed the main mechanisms used to facilitate co-ordination among IFIs. The aim was to gain insights into which collaboration mechanisms are available for international financial actors, and how much co-ordinated the landscape of clean hydrogen is, ultimately influencing financing, market growth and development. Respondents were asked to indicate the initiatives and mechanisms best suited to strengthen co-ordination and avoid duplication of activities, especially in developing countries.
Respondents were presented with seven co-ordination mechanisms (ranked from most to least binding):
Global rule-making organisation acting as managing entity;
Bilateral contracts of collaboration or co-ordination between financial institutions;
Memorandums of Understanding between governments, financial actors or specialised institutions;
Multilateral informational meetings between international financing institutions;
International investment platform to channel capital flows;
Non-legally binding international rules;
Voluntary international mechanisms to track investments.
Segment two delves into the available mechanisms to facilitate co-ordination between international financial initiatives for clean hydrogen. Accordingly, the results from Section 2 of the survey served as a basis to support this analysis.
The co-ordination mechanisms were further identified through desktop research and deep dives into international financial actors that have either implemented or are developing mechanisms to foster co-ordination and alignment of initiatives associated with clean hydrogen.
In light of the potential of co-ordination mechanisms to promote synergies and collaborations between IFIs and to catalyse investments, this chapter provides recommendations for international financial actors as well as policymakers involved in clean hydrogen to support the adoption and implementation of these mechanisms.
Note: The initiatives are coloured based on the step of the value chain they cover. Grey: Cross-cutting, dark blue: upstream phase, blue: midstream phase, light blue: downstream phase, black: non-specified.
Source: Authors
Note: The initiatives are coloured based on the step of the value chain they cover. Grey: Cross-cutting, dark blue: upstream phase, blue: midstream phase, light blue: downstream phase, black: non-specified.
Source: Authors
Note: The initiatives are coloured based on the step of the value chain they cover. Grey: Cross-cutting, dark blue: upstream phase, blue: midstream phase, light blue: downstream phase, black: non-specified.
Source: Authors