A recent report by Cambridge Econometrics and the University of Exeter delves into the challenges and opportunities in kickstarting 'green hydrogen' production to decarbonize certain sectors of the global economy. While current hydrogen production mainly relies on 'gray hydrogen' from natural gas, the report emphasizes the potential of green hydrogen, generated via water electrolysis powered by renewable energy, as a crucial carbon-free alternative. The researchers simulated the impact of global policies mandating green hydrogen use in fertilizers and implementing a carbon price on hydrogen production. They conclude that a combination of these policies could make green hydrogen economically competitive with its gray counterpart. Dr. Femke Nijsse notes that green hydrogen is essential for decarbonizing industries like fertilizer production and steelmaking and could also find application in sectors such as aviation. The report highlights the importance of achieving cost-competitive green hydrogen to drive global decarbonization efforts effectively. Furthermore, the report underscores regional disparities, with countries like Brazil having the potential to achieve cost-competitiveness in green hydrogen production due to abundant renewable resources like wind power. However, policy support is crucial to align demand and supply effectively. By leveraging green hydrogen in ammonia production for fertilizers, regions can significantly reduce emissions and potentially become exporters of low-carbon hydrogen products. The study emphasizes the necessity of robust and sustained government policies to catalyze the transition to cost-competitive green hydrogen. The potential benefits include substantial emission reductions and the expansion of green hydrogen usage across various sectors, highlighting the pivotal role of policy frameworks in driving a sustainable energy transition.