Volume 45: Energy Transitions toward Carbon Neutrality: Part VIII

Epistemology of Net Zero, Financing a Faster Transition – Decarbonizing with Clean Hydrogen by 2035 John W. Ballantine, Jr.

Abstract

Climate scenarios and extreme weather surprises strongly suggest that faster energy transitions are necessary IF we are to stay below a 1.8o Celsius rise by 2050 and bend our carbon curve. A review of efforts to decarbonize heavy industry with cleaner hydrogen involves significant capital investment, continued R & D, and a refiguration of our energy supply chains. Our current investment typology and funding structure – in spite of COP28 pledges — does not have the capacity to provide up to $13 trillion for hydrogen over the next five years, or more for our electrical grids. We need to configure a flexible – heterogenous — investment framework to accelerate our energy transitions. Much like the Marshall plan, a focused energy bank using clean hydrogen as an illustrative case study shows the investment funds required to build a more decarbonized world by 2035.

Keywords COP targets, IPCC assessments, energy transitions, financial risk mitigation, funding gaps, green and blue hydrogen, scenarios.