IPC–MERCATOR POLICY BRIEF August 2022 - THE POLITICAL ECONOMY OF THE GREEN HYDROGEN TRANSITION
26 August 2022
Turkey has the potential to Russia’s war in Ukraine and the dependence of the European Union and Turkey on Russian oil and take the lead ahead of several European countries natural gas has brought the green hydrogen tran- including France, Germany, and the Netherlands sition to the forefront of energy policy debates. [...] Before the Ukrainian conflict, the EU-Rus- capacity deployment; in the case of wind energy, sian energy relationship relied on the tradeoff be- the winning offer of the Siemens-Gamesa-Kalyon tween the stability of oil and natural gas deliveries consortium was far below the global average for from Russia to Europe and the undisrupted flow of comparable offers.3 Moreover, the mixed strategy innovati. [...] Hence, the green hydrogen transition seems over the technological endowment of the democ- to be the only sustainable solution forward for Ger- racy (see the proof of proposition 2 in the Appen- many and the European Union given that the Rus- dix). [...] The European Clean global political environment and the fact that the Hydrogen Alliance is the policy platform that will majority of the expected hydrogen supplies will implement the decarbonization of EU industries, have to be imported indicate that the prospects of and in that way it sets a revolutionizing element in 29 German industrial growth are heavily connected to the EU’s New Industrial Po. [...] However, the most carefully designed alliances within the European crucial phase remains the period between 2025 Union as well as with the countries of the East- and 2030, the time in which the European Union ern Partnership and the Southern (Mediterranean) should install 40 GWh of green hydrogen electro- neighborhood.26 The role of Turkish foreign policy lyzers that would have the capacity to pro.