South Pole and the United Nations Industrial Development Organization (UNIDO) have signed a Joint Declaration to collaborate on accelerating industrial decarbonization through carbon-financed low-carbon hydrogen.
Announced in Singapore, the partnership aims to expand the role of high-integrity carbon markets in supporting hydrogen deployment, particularly in emerging and developing economies.
The agreement will be implemented through South Pole’s Asian Centre for Carbon Excellence (ACCE), where both organizations will work across methodology development, policy advocacy, market building, and hands-on project support.
The collaboration rests on three core objectives: advancing low-carbon hydrogen solutions in industry, shaping carbon markets as a viable investment mechanism, and developing projects under Article 6 and other emerging market systems.
Building the Frameworks for High-Integrity Hydrogen Credit Generation
A major focus of the partnership is developing the enabling environments needed for low-carbon hydrogen to scale. That includes designing fit-for-purpose methodologies and carbon finance frameworks aligned with leading standards and global best practice.
These frameworks would quantify and monetize emission reductions from hydrogen projects, an area still lacking robust, widely accepted approaches.
South Pole and UNIDO also plan to promote the integration of hydrogen technologies into global carbon markets, while delivering capacity-building, training, and research. By strengthening understanding among governments and project developers, the partners aim to unlock new revenue streams that can help derisk capital-intensive hydrogen investments.
The collaboration is anchored in a shared recognition of hydrogen’s decarbonization potential. Low-carbon hydrogen, whether produced via renewables, CCUS-enabled systems, or other low-emission pathways, can replace fossil fuels across multiple sectors.
Relevant: South Pole To Form Corporate Buyers Club For Carbon Removal
But without additional incentives, such solutions remain more expensive than conventional hydrogen production. Carbon finance could provide the economic bridge needed to close this competitiveness gap.
“This collaboration brings together UNIDO’s deep industrial expertise and South Pole’s global carbon market leadership,” said Frederic Gagnon-Lebrun, Global Senior Director for Policy & Strategy at South Pole. UNIDO’s Petra Schwager added that high-integrity carbon markets “can provide an additional revenue stream for capital-intensive hydrogen projects with long payback periods.”
By aligning industrial decarbonization, carbon market integrity, and new market mechanisms like Article 6, the partnership aims to advance real-world hydrogen deployment and support global net-zero pathways.
Read more: INPEX Launches Japan’s First Blue Hydrogen & Ammonia Park
