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Green Hydrogen Drives EU-UAE Trade Talks

Anela DoksoBy Anela Dokso14/04/20252 Mins Read
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As the European Union and the United Arab Emirates edge closer to finalizing a free trade agreement, green hydrogen has emerged as a pivotal element in these discussions. The EU’s ambitious climate targets, aiming to cut carbon emissions by 55% by 2030, have intensified its pursuit of sustainable energy sources. Green hydrogen, produced through renewable energy sources like solar and wind, is central to achieving these aspirations, offering a viable alternative to fossil fuels in the EU’s energy matrix.

A recent study indicated that the global green hydrogen market could reach $89.18 billion by 2028, expanding at a CAGR of 54% from 2021 to 2028. The UAE, with its ample solar resources, is strategically positioned to capitalize on this growing market, positioning itself as a major supplier. Analysts suggest that the potential for the UAE to produce green hydrogen at competitive rates could solidify trade agreements with the EU, aligning with both regions’ economic and environmental goals.

Additionally, regulatory harmonization remains crucial for this partnership to realize its full potential. The EU’s stringent environmental standards could become a benchmark for the UAE’s emerging regulatory framework on green hydrogen, ensuring consistent quality and sustainability benchmarks that are crucial for cross-border trade.

Integrating green hydrogen into the EU-UAE trade framework represents not just a bilateral economic opportunity, but a critical step in global efforts to transition towards cleaner energy. As negotiations progress, stakeholders within both regions must confront these challenges head-on, fostering innovation and collaboration to realize the mutual benefits of this transformative energy source.

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