Connected Strategy for Hydrogen Value Chain ^ Top ^ 4 Introduction Climate change is one of the most pressing issues of modern times. The use of fossil energy is one of the main man-made activities that is responsible for this change. The intergovernmental panel on climate change (IPCC) has concluded that in as little as 10 to 20 years the global average temperature is forecast to increase by at least 1.5 degrees Celsius. This creates immense urgency to decarbonize energy systems and shift to lower carbon sources to satisfy global demand. This is being referred to as the energy transition. Currently, the power sector, consisting of electricity and heat generation contributes ~26 percent of CO₂ emissions. Studies predict that demand for electricity will grow more than for any other energy source. The growth rate for electricity already exceeds that for oil, gas, and coal. By 2050, it is expected to be seven times higher than the average for other fuels. Mobility, on the other hand consisting of road, aviation, rail, maritime, and other forms of transportation contribute to about ~16 percent of CO₂ emissions. Additionally, energy use in industry accounts for ~30% of global greenhouse gas emissions. Hence, based on current accounting methodologies, energy use across sectors makes up as much as ~72 percent of carbon dioxide emissions1. Thus, climate challenge is largely an energy transition challenge, and the energy system transition must be at the heart of any climate solution. Energy is the foundational element of all economic activity. Secure, reliable energy and affordable supply is essential for most industrial processes and the provision of public services such as lighting, heating, cooking, information and communications technology, and mobility. Additionally, decarbonizing entire economies means tackling sectors where emissions are especially difficult to reduce, such as shipping, heavy duty trucks, aviation, heavy industries like steel, cement and chemicals, and agriculture. This is not easy work. Hydrogen is being explored as a zero-carbon energy alternative in large, heavy and “hard to abate” sectors of the economy such as aviation, shipping, and other heavy industry. While hydrogen has several features that make it attractive for this end goal, there are several challenges that persist. Widespread hydrogen use is today limited by availability of renewable electricity (for green hydrogen), regional cost and efficiency of carbon capture (in the case of blue hydrogen) and several safety and handling limitations.