While at a recent conference, we conducted a poll among attendees to gauge where industry is on its decarbonisation journey and what the main challenges are. Nearly half of those asked said they were on target to meet internal targets, with around one fifth claiming they were ahead of those targets.

However, nearly 20% said they did not know their company targets or were unaware of the status with regards to progress. The remainder were behind the pace required to meet net zero ambitions, some by more than two years.

Of those identifying roadblocks to progress, the largest number pointed to complex regulatory frameworks as the biggest challenge. This was followed by legislative uncertainty and knowing which technologies to invest in.

Of those behind schedule to meet net zero targets, the biggest concern was the complexity around building combined and/or integrated value chains, followed by high costs and having to compete with lower cost providers from rival markets.

It came as no surprise to me that a central concern for recipients is the complexity associated with the establishment of combined and/or integrated value chains. Building new energy value chains is complex because they are just that – chains. If one link is not in place it can hold everything back.

Unlocking stalled projects in such an environment can be difficult for even the most progressive company. Typically, breaks in the chain come down to cost, regulation and demand readiness; building new infrastructure is expensive and there is not always enough demand to justify the investment.

So how to move forward in this landscape?

A complex landscape
There simply is no silver bullet, no Goldilocks 'just right' solution. Any company waiting for the perfect response to the climate challenge is risking failure to meet its own targets, and the goal at large.

It’s about embracing decarbonisation stepping stones and decoupling value chains so you’re not waiting on major investment decisions for a part of the chain. With this approach, industry can meet short-term demands and address immediate needs, while also positioning to meet the longer-term market reality of a complex, integrated value chain.

As an example of a decarbonisation steppingstone in the consumer world, you can look at electric vehicles. It took the introduction of hybrid vehicles as the interim step to spur investment in electric charging and for consumers to have the confidence to start switching to fully electric vehicles.

Another important success factor is for customers to have visibility on investments and returns, on technological options, on timelines, and capacities to help to accelerate action and boost effective deployment of decarbonisation resources across the most complex energy ecosystem.

The work we recently carried out with membership association group for industrial decarbonisation in Scotland, NECCUS is a case in point. We identified potential routes to capture carbon across the country's 28 largest emitters, including 100 individual sources.

We delivered cost estimates and front-end engineering and design for CO₂ capture, compression and pipeline transportation for each facility under multiple operational conditions. We demonstrated solutions ensuring they will be fit for purpose in the net zero economy.

Reports achieved robust cost estimates using proprietary software and digital tools alongside client data. The end result was clarity about what is required, what is possible, and the potential economic impacts.

Time to act
The energy transition has introduced added layers of complexity to the industrial landscape, raising the requirement for visibility and clarity at the exact moment when certainty is in short supply across both the immediate and longer term.

Executing any project against this backdrop can be challenging - more so if the cost implications and knock-ons are not considered in full. The interactions with existing infrastructure, the pros and cons of technology, as well as the timelines and capacities also need to be carefully thought through and managed.

To navigate this complexity, it is fundamentally important to work with experts who understand the net zero landscape, how value chains link up and provide solutions and pathways to decarbonisation with clear business cases that provide customers with the confidence to make decisions and move forward in an uncertain environment.

Decarbonisation in the energy sector will be built on many solutions and, while the path ahead may not always be obvious, inaction is simply not an option.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.