Sustainability dimensions of hydrogen in specialist discourse – an inventory

The analysis shows a heterogeneous picture across the sustainability dimensions. What they have in common is that greenhouse gas emissions are discussed prominently by all publication types. This emphasises the importance of this dimension in political debates about, for example, regulations such as the Renewable Energy Directive (RED) III. Other environmental factors like electricity sourced from renewable energies, water use, biodiversity and soil protection and governance aspects such as the geopolitical dimension of emerging trade relations are also mentioned. Although these receive significantly less attention than greenhouse gas emissions, they are also found across all publications.

According to the textual analysis, the least mentioned dimensions are stakeholder participation, land rights and the impact on the national energy system, e.g. competition for renewable energy export sites versus on-site utilisation. The picture suggests that these issues are perceived as having less importance in the current discourse. This contrasts with the actual relevance of these dimensions, especially for the local population in project proximity and rural groups.

Towards the next steps: a selection of (existing) instruments

The instruments play a central role in our study. By this we mean specific approaches or mechanisms that are used to check whether there are negative impacts on the respective sustainability dimension, e.g. on water resources. For our study, we analysed the literature for such approaches and came across a plethora of various instruments. As an initial classification, we differentiated them as follows:

• Assessment mechanism: A structured process for evaluating, measuring or analysing specific aspects of performance, conditions, or outcomes, e.g. the Environmental Impact Assessment.
• Indicator: A measurable variable that provides information about a specific condition, allowing assessment and tracking of performance, progress, or changes over time. One example is the World Bank’s World Development Indicators, which record country-specific statistical data in a standardised format.
• Standardised framework: This framework comprises an established set of criteria, guidelines, or specifications designed to ensure consistency and quality. It provides a common framework that can be universally understood and applied, such as the performance standards of the International Finance Corporation (IFC).
• Quantitative threshold: A specific numerical value or limit that serves as a benchmark for measuring or evaluating a particular variable. The reduction in GHG emissions from hydrogen compared to a fossil fuel thus provides a threshold value.
• Other instruments: This category includes various instruments of different characteristics that cannot be clearly assigned to the other types, e.g. the non-use of certain areas and/or resources; reporting obligations, etc.

Within the scope of our meta-study, we created fact sheets for nine of the 16 sustainability dimensions identified. These fact sheets provide an overview of the instruments that are already mentioned in the literature, thereby making the dimension tangible.

The example of water

Water is needed as a basic material for electrolysis, but also for cleaning photovoltaic panels, for example. Particularly in arid regions, the use of local water resources for hydrogen production can have a negative impact and exacerbate existing water stress for flora, fauna and the local population. To avoid this, the following can be carried out:

• An environmental impact assessment can be conducted as an assessment mechanism which identifies potential risks to the local water balance. The project developer must explain how these risks are handled.
• The World Resources Institute's Baseline Water Stress indicator can be used to recognise areas for hydrogen production in which the water stress is low. Projects would only be permitted in these areas.
• The standardised framework EN ISO 14:0001:2015 serves as the basis for establishing an environmental management system to accompany the hydrogen project. This system would set requirements for the project’s resource consumption.
• A portion of the project investments can be used to improve the local water infrastructure; this would be defined as a quantitative threshold.
• Another approach is to exclude certain water sources such as drinking water from hydrogen production.

What’s next: Specifying instruments for hydrogen and approaching cooperation through dialogue

The good news is that there are already a large number of proposed instruments that can already be used to anchor the sustainability dimensions for hydrogen. It is important to take a closer look at the extent to which instruments are suitable for accommodating the specific characteristics of hydrogen. For example, one risk specific to hydrogen projects is that export-orientated projects restrict the local population’s access to energy. The level at which instruments are most effective also needs to be explored. Some instruments are more effective at national rather than local level. When integrating hydrogen projects in overarching national decarbonisation strategies, they need to not only significantly contribute to those strategies, but also avoid compromising the availability of renewable energy locally. Such needs and demands go far beyond the project level and cannot simply be mapped using catalogues of certification criteria. A better vehicle here would be political dialogue on energy or hydrogen partnerships between the import and export markets.

It is important that hydrogen projects abroad – even if the hydrogen is primarily intended for exports – are largely the responsibility of those countries. It is good if import markets like Europe want to strengthen the sustainability of this hydrogen. The design of specific requirements and instruments, in contrast, must always be elaborated in mutual dialogue and on an equal footing with those affected and local stakeholders. They know which aspects are particularly relevant in minimising risks or creating opportunities for economic development and the political integration of partner countries.