Green hydrogen, produced through renewable-powered electrolysis, is increasingly recognized as a key tool for decarbonizing hard-to-abate sectors such as heavy industry and long-distance transport. With abundant renewable potential, many developing countries are well positioned to become major producers. Yet without careful governance, green hydrogen risks reinforcing historical extractive patterns while failing to deliver broad-based development benefits.

This report, developed by UNDP in partnership with the University of Oxford’s TIDE Centre, proposes a “3P” framework - People, Planet, and Prosperity - to ensure that hydrogen strategies align with human development goals. For people, projects must expand energy access, build resilient electricity systems, and support labor upskilling to enable a just transition. For the planet, policies must address risks around land, water, biodiversity, and critical minerals, applying strong environmental safeguards and circular economy principles. For prosperity, countries must integrate hydrogen into industrial policy, promote local value addition, and guard against technological obsolescence, while adopting a cautious, phased approach to investment.

Ultimately, green hydrogen is not a development guarantee but a policy choice. With inclusive planning, transparent governance, and context-specific strategies, it can help countries decarbonize, diversify their economies, and expand human well-being. Without such measures, it risks deepening inequality and environmental strain. This report provides policymakers with concrete recommendations to navigate these challenges through multistakeholder engagement, transparent governance, and tailored national strategies to ensure hydrogen serves as a lever for equitable growth, climate resilience, and just energy transitions.