Green hydrogen is positioning itself as a strategically relevant solution in Latin America and the Caribbean (LAC), highlighting its sectoral articulation, both in energy, industry and transportation.

According to an article published on the IDB Invest blog, there are significant challenges for the sustainable deployment of green hydrogen:
• Closing the capacity and knowledge gap for government agencies, financial entities, and project developers
• The development of green hydrogen projects represents an aggressive deployment of installed renewable energy capacity
• Projects to meet domestic demand cannot be developed in silos, but developing complete ecosystems
• Closing the financing gap

Therefore, IDB Group, including IDB Invest, has been supporting the LAC region since year 2018 in building capacities and establishing favorable conditions that will allow successful investments in green hydrogen in the coming decades. IDB Group collaborated with various government agencies in Chile, Colombia, Uruguay, and Costa Rica, among other countries, in the construction of their national roadmaps for the promotion of green hydrogen and creating enabling market conditions.

Moreover, IDB Invest is working with private companies in the creation of technical and analytical capacities, the identification of opportunities for early adoption of the technology, and the development of financial products tailored to their hydrogen projects.