The Paris Agreement’s 1.5 °C target drives governments to rethink industrial systems and energy mixes, emphasising decarbonisation technologies like green hydrogen. While green hydrogen is a promising solution, developing countries face challenges due to limited industrial and economic capabilities, which hinder the adoption of green energy technologies. These challenges also complicate balancing industrial growth with sustainability goals. The 2030 Agenda for Sustainable Development urges low- and middle-income nations to develop policies addressing multiple sustainability dimensions, yet many Sustainable Development Goals remain off track with less than five years to 2030. This study introduces a novel methodology to evaluate the industrial capabilities needed for green hydrogen production. Analysing 139 countries from 1995 to 2019 highlights relationships between industrial readiness and green hydrogen production, identifying key bottlenecks and policy implications. The research focuses on Asia, where China leads in green hydrogen production. Expanding the Asian market requires strengthening industrial capacities and enacting robust policies, particularly in lower-income countries. The findings underscore the need for targeted efforts to bridge capability gaps and foster green hydrogen adoption as a critical step toward achieving global decarbonisation and sustainable development goals.