.
| • | The wrong side of history. A new UN report on climate change indicates that harmful carbon emissions are at a historic high, putting the planet on a pathway to global warming of more than double the 1.5°C target agreed to in the 2015 Paris Agreement. Although carbon pollution temporarily dipped amid the global lockdowns of the early COVID-19 crisis, emissions have since rebounded. However, the report also argues that it is still possible to cut emissions in half by 2030. Creating more walkable cities, electrifying transport, and removing carbon from the atmosphere can help. [WaPo] | | | | • | Commodities crunch. The war in Ukraine, supply chain snarls, and record-high prices of commodities have led some experts to fear that the world’s transition to clean energy could intensify inflation. Soaring demand for minerals used for electric vehicles, solar panels, wind turbines, and electrical grids could lead to inflationary prices and supply shortages, they say. But while damage from a hotter climate will likely be permanent, a temporary shortfall of critical minerals could be eased through innovation (for instance, creating batteries that use less cobalt) and improving technology and recycling. [Bloomberg] | | | | • | A $12 trillion opportunity. Shifting from high- to low-emissions assets could create the largest capital reallocation in history. That would spur booming demand for climate-friendly goods and services, as well as the technologies, equipment, and infrastructure needed to produce them. Eleven value pools—including transport, buildings, power, and water—may generate more than $12 trillion in annual revenues by 2030. | | | | • | Playing offense is the best defense. As more stakeholders demand net-zero commitments, companies that act quickly can tap into the revenue growth that the transition could bring, while also delivering environmental benefits. Instead of playing defense and trying to minimize sustainability-related risks, companies can create value by going on the offensive—for instance, by building green businesses. See the latest edition of the McKinsey Quarterly Five Fifty for the clean-energy transition’s biggest opportunities. | | | | — Edited by Kanika Punwani | | This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. | | You received this email because you subscribed to the On Point newsletter. | | | | Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007 | | | |
No comments:
Post a Comment