Towards a green hydrogen economy: A review of financing mechanisms, drivers and barriers

Green hydrogen is essential for global decarbonization, but its adoption is constrained by high production costs and a lack of infrastructure. Large-scale investments are necessary to build a green hydrogen economy, but a gap remains between required and realized investments. This study provides an overview of green hydrogen's financing mechanisms, drivers and barriers, using a mixed-methods review, complemented with the PESTLE framework. The findings show limited research on financing green hydrogen projects, but valuable insights are derived from renewable energy studies and grey literature. Currently, public funding and supportive policies are crucial. Findings also emphasize the multidimensional complexity of the green hydrogen economy with multiple interdependencies among influencing factors. Based on the synthesis of financing mechanisms, drivers and barriers, four areas of action are defined: institutional framework, techno-economic performance, market formation, and societal backing. For each area of action, implications for policymakers and industry stakeholders are derived.