Green hydrogen for industrial decarbonisation: Central Asia and the South Caucasus

Green hydrogen can play an important role in advancing the energy transition in Central Asia and the South Caucasus by supporting the decarbonisation of hard-to-abate industries, advancing industrial innovation, enhancing energy security and setting the foundation for a diversified economic future.

However, fossil fuel dependence, policy and energy market barriers, ageing infrastructure, water stress and the absence of a robust strategy are key barriers to the development of green hydrogen in the region that comprises Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.

This report presents key drivers for green hydrogen development include decarbonisation commitments, renewable energy potential, growing investor interest and the need to address hard-to-decarbonise industries. It also highlights the need to address policy, market, infrastructure and skills-related gaps, and outlines targeted, region-specific recommendations to advance green hydrogen development.

Given the diversity of the region, the report calls for a co-ordinated and phased approach that prioritises “no-regret” applications of green hydrogen, including the greening of existing hard-to-decarbonise sectors and local value creation. It also highlights the importance of integrating hydrogen policies into broader energy and industrial policy objectives, and promoting institutional and human capacities to ensure the sustainable deployment of green hydrogen in the region.