(Credit: Pixabay)The sectors that produce the majority of global greenhouse-gas emissions face a steep challenge to decarbonize. In many cases, a transformation is well underway. A new study from McKinsey draws together articles and reports that lay out a pathway to net zero for nine emissions-intensive industries:
The report lays out the “momentum” and the “acceleration” for each sector, followed by in-depth information on reducing emissions and charting a path to net zero (that we won’t cover in its entirety here).
The momentum: Over the past decade, the costs of renewables have dropped substantially—solar power by as much as 80 percent and wind power by about 40 percent—making them economically competitive with conventional fuels, such as coal and natural gas.
The acceleration: A successful transition to net zero will require meeting increased demand for electricity by scaling up renewable, low-carbon power generation and building enough flexibility in power systems to match supply and demand.
The momentum: Several oil and gas companies have set net-zero-emissions targets for their operations. Some are already reducing and offsetting their emissions, while others are divesting from high-carbon portfolios and investing in new technologies and businesses, such as hydrogen.
The acceleration: Oil and gas companies have capabilities that may be valuable for parts of a low-carbon energy system, such as access to capital and operational expertise. Leaders can look to frame strategic choices around managing carbon, rebalancing portfolios, and playing to core strengths.
The momentum: Sales and planned production of low-emissions cars have surged. By 2035, we project that new passenger-vehicle sales in the largest automotive markets (China, the European Union, and the United States) will be close to 100 percent electric.
The acceleration: To make low-emissions vehicles the new norm, new supply chains and manufacturing capabilities are needed, as well as corresponding infrastructure, such as charging stations and hydrogen fueling stations. Innovations in electrifying heavy vehicles and trucks and developing autonomous vehicles could also help.
