Hon. Malcolm Turnbull's opening remarks at the Green Hydrogen Forum in Latin America 2023
Bariloche, 18-19 May 2023
On behalf of the Green Hydrogen Organisation, GH2, welcome to this forum in Latin America.
Thank you to the Government of Argentina and the Province of Rio Negro for organising this event and especially our co-host the Governor of Río Negro Arabela Carreras for her green hydrogen leadership.
And thank you all for attending - government officials, civil society, business and academic leaders.
At GH2 we believe all stakeholders need to be brought together to build the green hydrogen economy – we all have a role to play.
Together over the next two days we must be the fuel that boosts the ramp-up of production and deployment of green hydrogen on this continent and beyond.
It is evident that we simply cannot meet the challenges of global warming, energy security and sustainable development without green hydrogen.
By 2050, global demand for hydrogen could increase by almost seven times, to decarbonise emissions intensive industries such as heavy transport, shipping and steel.
We have almost every resource we need to meet this challenge. In Latin America we have the sun, wind and hydropower. Latin America is one of the world’s leading regions for these renewable resources and can play a major role in the global push for green hydrogen.
We have the technologies, and they are getting better. And above all we have the leadership. There are at least 12 Latin American countries with green hydrogen strategies, and large-scale projects have been announced in Argentina, Brazil, Chile and Colombia.
According to the International Energy Agency, demand for green hydrogen in Latin America will increase from 4 million tonnes today to 7 million tonnes by 2030. The European Union is also looking to Latin America to supply green hydrogen and ammonia to meet its own net zero targets.
To realise this potential, there are some things we need to get right from the start.
First, we need clear definitions for what counts as hydrogen which is green, clean and aligned with a 1.5-degree global warming scenario.
That means we all need to agree strong emissions thresholds to ensure the lowest possible emissions from green hydrogen production.
All hydrogen production routes need to achieve at least a 90% reduction on today’s levels.
This means no more than 1 kg CO2 equivalent per kg hydrogen which is of course at the heart of the Green Hydrogen Standard.
This Standard seeks to be an international bridge for trade by helping projects align with requirements in key markets such as the EU. It also covers Environmental, Social and Governance (ESG) criteria and the Sustainable Development Goals.
We invite green hydrogen producers to have their projects independently accredited by GH2. Projects that meet the standard will be licensed to use the label “GH2 Green Hydrogen” and will be eligible to obtain and trade GH2 Certificates of Origin.
Second, we need to get the financing in place to develop projects and build the required infrastructure.
To reach net zero emissions by 2050, annual clean energy investment worldwide will need to more than triple by 2030 to around $4 trillion.
In the Americas, there are there are already strong policy commitments which will help make projects bankable. If we look North, ground-breaking public policy measures like the US Inflation Reduction Act (IRA) are gaining the attention of investors and project developers.
Other countries with large-scale project announcements, including in Latin America, will need to compete with such financial incentives. Public development banks and their government shareholders need to unlock private capital and de-risk green hydrogen projects in the region.
Only through bold action from the Inter-American Development Bank, the World Bank and other development banks will we improve energy access and economic prospects for citizens in these countries and at the same time address climate change globally.
Last but not least, we need a social license to operate. No large-scale projects can be carried out without wide social acceptance and adherence to high ESG standards.
This ‘social license’ begins with the surrounding communities, which are usually impacted by the construction and operation of these projects.
Establishing clear and inclusive processes to build trust with the local communities and host populations will help avoid the mistakes of the fossil fuel industry.
Governments need to facilitate engagement between project developers and local communities and establish clear models for community consultation.
New and innovative ways must be found to progress planning and permitting for the infrastructure we need to get on with this part of the energy transition.
We also need to ensure that green hydrogen projects contribute to more reliable and accessible renewable energy, clean water and green jobs for citizens.
To be clear, green hydrogen is the future. We have a planet to save and not a day to lose.
I wish you all a very successful forum.
Thank you.