Globalisation and Transformation

Green hydrogen is increasingly heralded as the best alternative to fossil fuels. But to prevent it from becoming another excuse for greenwashing, Western policymakers must work with their counterparts in the Global South to create an economically viable sector with strong environmental and social standards.

As central banks tighten monetary policy, dozens of climate-vulnerable, highly-indebted countries teeter on the edge of a financial abyss. To address the confluence of economic and environmental disasters ravaging the Global South, the international community must provide immediate debt relief in exchange for green investments.

Investing billions in the development of new gas fields in Europe or in Africa is a misguided approach and sends the wrong signals to many countries in the world. Instead, the German government should massively increase its investments in emission-free technologies right now.

In the era of multiple crises a new economic thinking is needed that integrates environmental, social and economic dimensions for the transformation of our economies. A joint, transatlantic project by the Heinrich-Böll-Stiftung, the ZOE Institute for future-fit economies and Finanzwende Recherche developed a series of analyses and proposals on how to achieve this. The online dossier of our Brussels office offers videos, podcasts and articles related to the publication "Making the great turnaround work - Economic policy for a green and just transition".

Rangelands in dry areas frequently offer perfect conditions for renewable energy projects. However, project developers often do not take the consequences for pastoralist communities into account. A transparent and participatory process is needed that includes pastoralists and respects their right to free, prior and informed consent (FPIC).

In a joint declaration, nine organisations call for binding and ambitious sustainability criteria for the production and trade of green hydrogen.

Within the energy transition, international trade in green hydrogen and its derivatives will play an important role. But what opportunities and risks does this entail for exporting countries in the global South? What framework is needed to ensure that investments and trade develop from the start with sustainability in mind? The Heinrich Böll Foundation and Bread for the World are exploring these questions in a joint project.

This article wants to provide food for thought on what a long-term economic policy could look like. In the context of the climate crisis, increasing inequality, the loss of biodiversity and financial instability, the challenge is to craft a strategic approach that can set the course for long-term success.

We are experiencing two very different pandemic realities between low-income and high-income countries. Unfortunately, instead of seeking a solidarity-based response, the international community has once again demonstrated its disunity in this health crisis. The task now is to regain credibility and rebuild trust.

The prospect of a green hydrogen economy comes with significant opportunities and risks. There is a need to both promote and carefully shape the much needed expansion of production, while limiting the end use of green hydrogen.