We stand at a pivotal time in history. Six years into adopting the Paris Agreement, progress is way off track. This week's latest report from the UN's Intergovernmental Panel on Climate Change (IPCC) once again stressed the stark reality facing us.

　　If we are to follow through on the Paris Agreement and achieve the sustainable development goals within this decade, some governments' commitments must be underpinned by concrete plans and swift actions from all parts of society.

　　For example, the recent release of China's "2021-2035 Plan on Hydrogen Energy Development" has emphasized the need for hydrogen production from renewable energy rather than fossil fuels, the plan sets the stage for game-changing, zero-carbon solutions, which have the potential to fundamentally transform high-emission sectors.

　　The development of China's green hydrogen sector has long been a priority for us at UNDP. We have been working closely with ministries and cities on the production and commercialization of fuel cell vehicles since 2003. Recently, we have expanded our focus to supporting China with renewable energy-based hydrogen production, harnessing the role of green hydrogen in energy and industries, and technical vocational training for a hydrogen economy.

　　With the new Hydrogen Plan in place, I want to take this opportunity to highlight some key issues for its successful roll-out:

　　First, to deploy green hydrogen at-scale, it is important to drive both supply and demand at the same time.

　　On the supply side, reducing the cost of hydrogen, in particular electrolyzers, is critical. According to the IEA, as of October last year, electrolyzer projects in the pipeline will have capacity of over 260 GW globally. However, IRENA estimates that the cost of green hydrogen could be reduced by as much as 85 percent through making renewable energy and electrolyzers cheaper and more efficient.

　　On the demand side, hydrogen-based energy solutions have the greatest potential for impact on high emission sectors, but industries must act swiftly. Over 78 percent of the world's greenhouse gas emissions come from three sectors: energy, transport, and industry. The decarbonization of these sectors requires diversified solutions that complement electrification through renewables with green hydrogen. It is therefore encouraging to see China's new Hydrogen Plan emphasizing the importance of combining these low-carbon solutions.

　　Second, to grow the hydrogen economy at scale, a completely new infrastructure is required starting from the regional level.

　　It's challenging for investors to commit to developing hydrogen supply and distribution infrastructure when there is no certainty in demand. To solve this problem, the production and consumption of hydrogen can be set up in concentrated geographic clusters. By doing so, a comprehensive hydrogen ecosystem and value chain can be developed with various end-use applications all sharing a common infrastructure, allowing for growth of the hydrogen economy.

　　Third, the positive impacts of green hydrogen go beyond reducing emissions. A green hydrogen economy at scale also has potential socio-economic benefits. Industries where hydrogen is currently being produced as an unutilized by-product could harness this resource to create further jobs and help make up for job losses that will likely occur in traditional sectors as part of the green economy transition.

　　Lastly, strengthened financial regulations are important to help accelerate the adoption of green hydrogen. Targeted policies can help speed up the transition away from fossil fuels towards low-carbon solutions like green hydrogen.

　　This can help tip the balance for investors by further narrowing the profit margin of investing in carbon-intensive projects, especially given the cost of potentially having to ultimately decommission or retrofit with carbon capture and storage. Combined with institutionalized standards and mandating climate-related risk disclosure, price-based incentive mechanisms can make green hydrogen an increasingly attractive option, accelerating investments into its wider deployment.

　　Hydrogen is no longer a future aspiration. The will is clear, the technology is here, and we're more prepared than ever to bring it to scale. The time for action is now, to save our planet from the irreversible consequences of climate change and protect it for future generations.

　　Ms. Beate Trankmann is the Resident Representative of UNDP China