Land Acquisition and Use

Key considerations

• Land tenure risks are the risks associated with acquiring rights to land in jurisdictions where land governance is less developed, land rights are not clearly documented, or where there may be pre-existing claims to land which can be difficult for project sponsors to diligence. The risk of a potential future dispute between investors and local communities over land is common and is crucial for green hydrogen projects to navigate.
• Project developers will need to gain a clear understanding the nature of the legal and regulatory regime surrounding land acquisition and use in the host country, and assess the land tenure risks and considerations related to indigenous peoples, existing land rights and fair and just compensation.
• Governments, on the other hand, will want to ensure that the opportunities to benefit from its land resources are maximized while also incentivizing project developers to research project development potential in their countries. Consistent and transparent rules and regulations related to land acquisition will need to be put in place, considering key matters such as payment obligations and exclusivity entitlements.
• All involved partners will need to ensure that indigenous peoples rights are safeguarded and that local communities are consulted where a project involves the acquisition of community lands.