How Policy-Related Hindrances to Energy Sector Growth Can Be Addressed

Growth in the global energy industry is often stalled by regional and international policy-related hindrances. A poll of over a thousand industry professionals surprisingly found that policy can become a significant barrier to growth in the energy sector when it involves unrealistic energy transition and climate targets.

Green energy policy development should always involve communities and industry to ensure everyone who is affected by the green transition is on board. Furthermore, lawmakers should ensure policy development deals with domestic and international issues.

Alongside investment from the private and public sectors, the right kind of policies will be critical to facilitating the transition from fossil fuels such as oil, coal, and natural gas to renewables. On the other hand, policies can also make the green transition slow and ineffective if they aren’t handled with the utmost care.

The survey of 1,289 top energy sector professionals found that policy and politics accounted for 5 of the top 10 barriers to green energy. These policy-related challenges were a political risk, aging workforces and skill shortages, limited investment in innovation and technology, licensing and permitting hindrances for new projects, and supply chain challenges.

The survey revealed a link between government policies and the energy industry that could be exploited to increase investor confidence and generate the capital needed to fund the energy transition. Setting realistic energy targets, for starters, would go a long way toward encouraging activity in the private sector.

As target-based policies often have major and long-lasting social, environmental, economic, and political consequences, lawmakers have to put as much forethought into their creation as they can. Comprehensive and careful planning during policy development can help policymakers craft energy transition policies that can deliver decent ROI even amidst political uncertainty and turmoil.

To ensure joint climate efforts run smoothly with little risk of disruption from geopolitical tensions, green policy development should include communities and industry as well as strive to tackle domestic and international problems. Small-scale agreements such as the North Sea Wind Power Hub and the Visegrád Group’s Energy Collaboration on Europe, as well as international collaborations such as the Paris Agreement, the Global Methane Pledge, and the Global Climate Finance Framework, are examples of agreements that help to further climate goals despite geopolitical issues.

Creating better renewable energy targets would also help to address the policy-related hindrances to green energy growth. Global energy-related carbon dioxide emissions grew last year even though we are just half a decade away from the goal of cutting 2019 emissions by half by 2030. Many other targets are fast approaching as the world seemingly moves in the opposite direction, begging the question of whether current green transition targets are too ambitious.

Additionally, the targets provide very little time for the energy industry to raise the astronomical levels of capital it will need to transition to solar, wind, hydro, and other renewables. Energy transition targets that take the financial considerations of the green transition into account while including community and industry in the creation process would be more likely to attract investment and have a higher chance of succeeding.

With the right policies in place, companies like Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) would willingly ramp up their operations in order to provide sufficient supplies of the green energy metals that are crucial in manufacturing clean energy products, such as solar panels.

NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF

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