APEC Advances Green and Low-Carbon Hydrogen Transition

APEC member economies are laying the groundwork for cleaner energy transition within the region through a series of initiatives related to green and low-carbon hydrogen.

During a policy dialogue held last week in Lima, Romulo Mucho, Peru’s Minister of Energy and Mines, urged member economies to advance sustainable economic growth and prosperity in the Asia-Pacific region and seek to integrate efforts to achieve these goals collaboratively and efficiently.

“Energy is what makes all progress possible. Energy is also the foundation on which our economies are built,” Minister Mucho said. “However, we are also aware of the climate threats we face, which are mainly caused by the current energy systems and in that sense, it is imperative to consider an efficient and conscious use of our energy resources.”

“Being energy efficient does not mean depriving ourselves of our safety and comfort. It’s about using energy wisely and effectively,” added Minister Mucho. “This allows us to save inputs, be more competitive, reduce greenhouse gas emissions, as well as preserve natural resources and the environment.”

As the host of APEC 2024, Peru has put sustainable growth as one of its main priorities for the year, specifically looking at promoting clean energy transition. It has identified green and low-carbon hydrogen as the focus because of its potential as future energy sources.

“The development of green and low carbon hydrogen stands out as one of the most promising energy sources of our future,” said Renato Reyes, Peru Senior Official for APEC, in his opening remarks at the policy dialogue.

“There is a recognition of the relevance of low carbon hydrogen as an energy vector to decarbonize various sectors of the energy system, particularly its role for hard to abate sectors such as industry and heavy transport, and its potential in the domestic use and as a trade product,” Reyes added.

The policy dialogue heard from experts and industry leaders on the latest trends and frameworks that can effectively support, catalyze, and enhance cooperation for APEC economies' adoption of the green hydrogen and low-carbon value chain.

Participants explored key strategies and collaborative efforts that can drive the development and implementation of green and low-carbon hydrogen policies, including looking at emerging technologies, standards and requirements to produce hydrogen, as well as defining what constitutes as low-carbon hydrogen.

Glen Sweetnam, senior vice president of the Asia Pacific Energy Research Centre (APERC), presented examples of low-carbon hydrogen policies across 21 APEC member economies. Sweetnam highlighted that some economies emphasize their ability to produce low-carbon hydrogen, while others emphasize the role of hydrogen for decarbonization of energy end-use and power sector.

Speakers at the policy dialogue also stressed that reducing the cost for low-carbon hydrogen is key to spur the transition, highlighting that the growth in wind and solar energy is mainly due to the significant reduction of its cost in the last 15 years.

Amalia Pizarro from the International Energy Agency and Elizabeth Font from Cadeo underlined the mismatch between low-carbon energy project that has been announced and how those projects do not necessarily attract off-takers. They said that some sort of incentives are needed to address this.

As part of the commitment in advancing the policy dialogue and the work on clean energy transition forward, Peru is proposing an APEC policy guidance to develop and implement low-carbon hydrogen policy frameworks in the Asia-Pacific. The policy guidance aims to make the case for economies to move into the production and development of this energy source in a coherent manner.

“A just transition requires collective action; collaboration between stakeholders as well as political will,” said Ariadne BenAissa, lead shepherd for APEC Energy Working Group. “It is important for us to continue our sharing of best practices as we push for an inclusive energy transition through various pathways, including clean energy.”

Peru will host the 14^th APEC Energy Ministerial Meeting in Lima in August.

For further details, please contact:

Masyitha Baziad +65 9751 2146 at [email protected]
Michael Chapnick +65 9647 4847 atr [email protected]