Governments and companies worldwide continue pledging to achieve net-zero emissions of greenhouse gases. But the drive to decarbonize is at an inflection point. While new technologies and policies are accelerating the world’s progress towards cleaner energy, we have not yet seen a corresponding decrease in global emissions.
During a McKinsey Live webinar, associate partner Gracie Brown and senior partner Humayun Tai shared insights about the commitments made to date, the lessons learned from current efforts, and actions enterprises and governments should take to solver for a more orderly energy transition.
Although situations vary by country and industry, Brown and Tai discussed how geopolitical tensions, macroeconomic shocks, affordability, and energy security threaten to stall a lot of the progress that has been made. They noted that global enterprises and governments need to create energy transition plans that find the right balance between decommissioning inefficient and highly polluting assets while investing in lower-emissions fuel production.
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For more on this topic, read or listen to the articles and reports “The energy transition: A region-by-region agenda for near-term action,” “Decarbonizing India: Charting a pathway for sustainable growth,” “Toward a more orderly US energy transition: Six key action areas,” and “How climate action can help deliver EU energy security” and watch a replay of the webinar “Leading voices discuss implications of the net-zero transition,” all available on McKinsey.com.