IV. Investment and Public Finance In Jordan, public funding and investment are essential to the implementation of green hydrogen initiatives. Large capital expenditures in workforce development, technology, and infrastructure are needed to do this. Subsidies, grants, and tax incentives are examples of public finance tools that are crucial for reducing initial financial risks and encouraging private sector involvement. Furthermore, establishing global alliances and loans can guarantee long-term financial viability and fill funding shortages. Green hydrogen mobilization will be made possible by transparent legislation, strategic budget planning, and effective governance. Outlined below are the results of our risk assessment for investment and public finance: Risk High investment cost and fluctuations in interest rates. Probability Impact Period of Influence Short-term Limited access to private investments. Probability Impact Period of Influence Short-term Impact Mitigation High capital costs for establishing hydrogen plant infrastructure could deter private sector participation and cause project delays. Fluctuating interest rates increase financial uncertainty, further deterring investments. Early-stage operational costs could strain government budgets and discourage long-term investments. • Offer financial incentives and lowinterest funding through partnerships. • Implement risk-sharing mechanisms like guarantees and co-financing. • Develop a national PPP framework for effective investment distribution. Uncertainty in the hydrogen market and high upfront risks may discourage private investors from funding hydrogen projects. • Establish a dedicated green hydrogen fund with public and private contributions. • Provide tax incentives for investors. • Create an enabling regulatory framework that reduces risks for private sector involvement. Delayed infrastructure development. Probability Impact Period of Influence Mid-term Slow implementation of infrastructure (e.g., ports, pipelines, storage) could create bottlenecks in hydrogen export operations and reduce market competitiveness. • Develop a detailed infrastructure roadmap with clear timelines; prioritize funding for critical infrastructure; collaborate with international stakeholders to leverage technical expertise and funding. Short-term public expenditure outpacing revenue. Probability Impact Period of Influence Short-term Public expenditure on infrastructure and subsidies may exceed initial revenues from hydrogen exports, creating fiscal pressure. • Develop a long-term budget plan with phased funding allocations; ensure diversification of revenue streams(e.g., domestic taxes, export duties, and international carbon markets) to support public expenditures. 33
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ESSG framework for green hydrogen development in Jordan : according to PtX hub
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