When we talk about reaching net-zero emissions, we often overlook the challenges of transforming the intricate physical assets that make up our current energy system. This system has been finely tuned over centuries to deliver optimal performance, is deeply integrated into the global economy, and serves billions of people. The McKinsey Global Institute Research has identified 25 major technology and infrastructure obstacles that must be addressed. These challenges go beyond just developing and implementing low-emission technologies, they also involve transforming supply chains and the underlying infrastructure.
As the planet continues to heat up and concerns grow about climate risks like severe flooding and heatwaves, global leaders are meeting in Baku, Azerbaijan, for COP29 to discuss climate issues. Companies are grappling with the strategic implications of climate action in a world of increasing uncertainties. Corporate leaders are focusing on achieving their own net-zero targets and navigating the opportunities and threats that come with decarbonizing today’s high-emission system.
