Innovating to Net Zero: An Executives Guide to Climate Technology
McKinsey’s new report published in October 2021 provides a detailed insight into five progressing technology groups- electrification, agriculture, power grid, hydrogen and carbon capture. The report suggests these five areas will attract $2 trillion capital each year until 2025 and also result in a 40% reduction in greenhouse-gas emissions by 2050.
Electrification is expected to gain half of the investment with emerging EV batteries, battery control software and electrifying industries. Zero-emission farm equipment, meat alternatives and bioengineering will contribute towards a new green revolution in agriculture. Authors also predict acceleration in the use of power grids to make electricity clean. Moreover, low-cost supply and better infrastructure for hydrogen can reduce 2.5 GtCO2 by 2025. Lastly, carbon capture technologies like direct air capture, bioenergy capture, biochar and more will make many activities economical. For companies to enter these markets successfully, they will need a nuanced and evolving understanding of technical advancements, customer demands, and policy.
