The Promise and Pitfalls of Emerging Green Technologies

The World Economic Forum hails hydrogen energy, Carbon Capture, Utilization, and Storage (CCUS), and Direct Air Capture (DAC) as some of the world's most essential tools toward a "greener, more sustainable future." However, according to a report from Resources for the Future, a global energy policy think tank, entitled "Global Energy Outlook 2024: Peaks or Plateaus?," there might be more nuance to that notion. The global energy giant Shell has projected that hydrogen will account for 7% of the final energy by 2050. Yet, despite generous subsidies from several national governments, the sector faces cost and infrastructure hurdles that could stall this projected growth. Regarding CCUS and DAC, the problems are similar: severe infrastructural limits and heavy investment costs.

THE BARRIERS TO SCALING UP

Despite their potential, all three technologies face substantial hurdles. According to the Global Energy Outlook report, hydrogen’s scalability is limited by high production costs, lack of infrastructure, and uncertainty around “clean” certification (due to its novelty, less expertise is available to confirm its effectiveness and authenticity). CCUS, though technically feasible, is expensive outside of industrial hubs and faces public pushback due to fears it may entrench fossil fuel dependence without curbing other pollutants. When it comes to DAC, there exists an argument that it raises moral hazard* concerns by giving emitters a license to delay direct emissions cuts. Moreover, the energy intensity of DAC and CCUS—and the siting of such projects in marginalized areas, namely lands of North American Indigenous peoples as well as less economically advantaged communities—risks compounding environmental injustices. Across the board, these technologies must navigate not just economic and technical uncertainties but also the need for public trust and social legitimacy.

THE ROLE OF POLICY AND EQUITY IN DEPLOYMENT

Still, policy momentum is growing. The US Inflation Reduction Act offers up to $3 per kilogram of clean hydrogen and up to $180 per ton of carbon captured via DAC. The European Union, meanwhile, is piloting carbon contracts for difference to de-risk private investment. However, incentives alone are not enough. Without clear governance frameworks, these policies risk deepening inequality by concentrating industrial risk in underserved communities while delivering benefits elsewhere. A just transition demands more than technological breakthroughs; it requires inclusive decision-making, environmental safeguards, and investment in affected regions. These conditions are not only ethical imperatives but also prerequisites for scale. If current policy momentum can be matched with inclusive governance, then the scale-up challenge, while daunting in terms of cost, need not be divisive.

It can be said that while these technologies still have their flaws, whether in terms of technology, cost, or ethics, they can neither be sidelined. Hydrogen fuel, CCUS, and DAC all play outsized roles in scenarios that limit global warming to 1.5°C, as stipulated in the Paris Agreement, especially in hard-to-abate sectors such as steel, cement, and long-distance freight. The main issue is that their widespread deployment will require innovation, capital, public trust, and equitable design. If such are achieved, these climate techs will not only reflect humanity’s technological ingenuity but also prove its collective moral stance.

*Moral hazard refers to a situation where someone feels more “allowed” to act recklessly due to perceived protective mechanisms. An illustrative example is a driver might drive their car with less care if they know insurance covers their vehicle.

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