The big question
Policymakers’ decisions shape the energy sector’s future, but without industry input, policies can hinder innovation and competitiveness. From Brazil’s economic challenges to the UK’s low-carbon tech ambitions, the lack of dialogue with the supply chain poses critical risks. Is the energy supply chain being listened to?
Energy Focus puts the big question to four members
Michael Vaux
Product Director at Crowcon
Detection Instruments
Ultimately, we do not have the ear of policymakers. This disconnect has significant consequences for the energy market. Governments and policymakers miss out on critical expertise that could guide more effective policies.
Without industry insight, policies and regulations often become overly stringent or misaligned with industry realities, stifling innovation. This misalignment results in unnecessary red tape, driving up costs for manufacturers and diverting resources away from research and development.
Smaller players in the industry are also disproportionately affected, as they lack the resources to manage complex regulatory requirements, making it harder for them to compete and thrive. This creates an uneven playing field, reducing diversity and innovation within the market.
Additionally, the lack of industry input can lead to policies that do not adequately address the practical challenges faced by the energy sector. As a result, there is a risk of implementing measures that are either too conservative or too aggressive, neither of which foster a healthy market environment.
This absence of a collaborative dialogue means missed opportunities for developing more sustainable and efficient energy solutions. The energy market evolves rapidly, and without the engagement of industry experts, policymakers may fail to anticipate future trends and needs. Ultimately, not being listened to by policymakers hinders the development of a dynamic, efficient and competitive energy sector, affecting everyone from large corporations to small innovators and consumers.
About Crowcon Detection Instruments
Crowcon is a global manufacturer of gas detectors and air quality monitors that protect people and places so that operations run efficiently and safely. The company has been aiming to make the world safer, cleaner and healthier by detecting gas and saving lives since 1970, with high quality fixed and portable gas detectors and air quality monitors that provide protection and process insights.
Alexandre Pereira
Commercial Manager at EquipSea
Policymakers hold the power to make decisions that can either foster growth or hinder the progress of the regions they govern. This influence is particularly evident in the energy sector, where decisions carry national significance.
Brazil currently faces significant opportunities for policymakers to enhance the country’s competitiveness on the global stage. However, without tax reductions, exemptions or drawbacks, Brazilian companies are struggling to compete effectively in the international market. This challenge is closely tied to the ‘Brazil Cost’ – a term referring to the high operational costs that diminish Brazilian businesses’ global competitiveness.
We believe that the supply chain can play a crucial role in helping policymakers to strike the right balance between tax revenue collection and maintaining the strength of Brazilian companies in global markets. Achieving this balance is essential. By accepting slightly lower taxes on individual items, the government could potentially see a larger total revenue due to enhanced business competitiveness.
While local content policies offer some degree of protection within the domestic market, comprehensive reforms are necessary to secure and boost Brazil’s competitiveness both at home and abroad – without relying on protectionist measures.
About EquipSea EquipSea is a Brazilian manufacturer of welded, machined and coated parts, as well as turnkey tested sets, including seals, hydraulic and electrical components. Serving global clients such as OneSubsea, Aker Solutions and Subsea 7, EquipSea delivers high-precision parts in carbon, alloy and stainless steels and high-nickel alloys up to 40 tonnes, offering Inconel cladding, high-precision machining and hydrostatic testing up to 30kpsi within a dedicated test bunker.
John Hartley
CEO of Levidian
From a standing start, Levidian has had success engaging with policymakers, and has grown to become an increasingly well-regarded voice within the low-carbon tech revolution. With a new government in the UK, we’re identifying opportunities to gain the ear of influential policymakers to help ensure that R&D and homegrown clean tech are recognised as important priorities in the journey to net zero.
Policymakers must actively engage with the industry, leveraging supply chain expertise to create ambitious and achievable policies
With high emitters and hard-to-abate sectors contributing around two-thirds of global emissions, there is an urgent need to support businesses that rely on carbon-intensive processes or produce methane as a by-product. However, this challenge presents an opportunity within the net-zero transition that has not yet been fully realised by policymakers – that businesses can remain commercially competitive by turning carbon into valuable, versatile materials as part of a circular economy model.
This is the solution that Levidian offers through its LOOP technology, which can easily be retrofitted to existing infrastructure. This can help to decarbonise some of the world’s hardest-to-abate sectors, such as agriculture, gas, concrete, cement and steel – securing their future in a net-zero economy.
It is imperative that policymakers listen to companies like Levidian that are already pushing the boundaries of decarbonisation to ensure the UK capitalises on this opportunity, and uses climate tech as an engine of our country’s future growth.
About Levidian Levidian is a British climate tech company on a mission to decarbonise carbon-intensive industries. By converting carbon liabilities into competitive advantages, it aims to solve the decarbonisation/business performance dilemma. Its LOOP technology captures carbon from methane before combustion, converting it into clean hydrogen and high-quality net-zero graphene, a high-performance additive that can be used to enhance the intrinsic characteristics of products in major global industries.
Laurent Alessio
Subsurface Director at THREE60 Energy
Collaboration between policymakers and the energy industry is essential for shared success. When it falters, there are severe consequences.
In environments such as New Zealand and the UK, a lack of consistent oil and gas sector policy, conflicting messages and inadequate industry consultation have led to a loss of investor confidence. This impacts the entire supply chain as participants shift focus elsewhere, risking areas such as late-life asset management and decommissioning. This reinforces the need for aligned government and industry decision-making.
Conversely, successful collaborations have yielded positive outcomes. The US and Malaysia’s ‘rig-to-reef’ programme for decommissioning, and the evolution of production sharing contract models across Southeast Asia, such as Indonesia’s gross split in 2017 and the Malaysian Small Field Agreement in 2021, show the benefits of industry–government cooperation.
However, key challenges remain. The development of carbon capture, utilisation and storage regulations is one area where closer collaboration could accelerate progress. Additionally, AI regulation requires careful consideration and input from policymakers and industry experts.
To ensure a sustainable energy future, policymakers must actively engage with the industry, leveraging supply chain expertise to create policies that are both ambitious and practically achievable.
About THREE60 Energy THREE60 Energy is a lifecycle solutions and engineering technology company with more than 40 years of experience. Serving oil and gas, wind, carbon capture and storage, marine, nuclear and defence, it offers integrated services from development to decommissioning. With a global team of more than 1,000, THREE60 Energy excels in technical competency and client collaboration, emphasising safety and core values of integrity, collaboration, challenge, and ownership through its ‘Better Energy Together’ approach.
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