Climate change is a reality—so how do we prepare for the world ahead?
Argentina has a time-sensitive window to develop its hydrogen potential, position itself more strategically in global markets, and use this emerging sector to accelerate its own transition toward renewable energy.
Preparing for the eventual scale-up of hydrogen is relatively low-cost: the country already has the necessary natural resources and a solid foundation. Failing to act, however, would come at a high price, effectively closing the door on future opportunities. Enacting a dedicated hydrogen law is crucial to reduce the political and macroeconomic uncertainty that can discourage investment.
Even if progress is slower than necessary and some actors resist change, the transition is already underway—and it will not stop. Many clean technologies are now more competitive than their fossil-based counterparts, and others are quickly advancing, scaling up, and becoming more affordable. Despite political swings and technological hurdles, the world ahead will undoubtedly be greener than the one we know today.
In many areas, the path forward is straightforward: electrification, energy efficiency, and renewable energy. But in sectors such as heavy transport, aviation, or steel and cement production, these solutions are not yet technically or economically viable, and alternatives are still in development. This creates an environment of uncertainty for all players across the sector.
→ The best way to navigate this uncertainty is to make decisions that position the country well across multiple possible futures.
One of those futures involves the large-scale adoption of low-emission hydrogen as a decarbonization tool for hard-to-abate sectors. Hydrogen and its derivatives can store clean energy and decarbonize industrial processes that cannot be powered by electricity alone. Yet unresolved economic and technological challenges still raise questions about the role hydrogen will ultimately play in the energy transition.
| Dimension | Enabling Conditions | Challenges |
| Structural conditions | Exceptional geographic conditions for producing low-emission hydrogen | High cost of capital in a sector with intensive investment requirements |
| Productive context | Existing technological and industrial base in hydrogen-related processes | Slower progress compared to the region, with no large-scale projects currently in operation |
| Institutional progress | Early regulatory efforts and cross-party legislative interest | Lack of a comprehensive policy framework for sector development |
| Ecosystem capabilities | A consolidated ecosystem with coordinated platforms | Limited capacity to influence public policy and legislative processes |
In this context, Argentina needs a law that sends a clear signal of political consensus in support of the sector, provides stable conditions for investment, and fosters local development. It is an ideal strategy in a moment of uncertainty: low cost and high impact. Put simply, without a law we are out of the game; with one, we give ourselves a real chance.
Argentina is entering the low-emission hydrogen market later than its competitors and in a context of structurally adverse macroeconomic conditions. This makes it essential to adopt a regulatory framework that includes instruments to reduce risk and bring local conditions closer to those offered by neighboring countries also competing for investment.
Leveraging national capabilities across the hydrogen value chain can generate skilled employment, strengthen domestic suppliers, encourage technology transfer, and build a more robust social license.
