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McKinsey & The net-zero transition: What it would cost, what it could bring

Today we will comment on a new report - and 6 articles - from McKinsey. Another great set of publications. Comprehensive, forward-looking, action-oriented.

The report focuses on the economic transformation towards net-zero, which will affect all countries and sectors of the economy. A new industrial revolution as Carbon Credit Markets has been advocating .

In collaboration with McKinsey Sustainability, McKinsey's Global Energy & Materials and Advanced Industries Practices, the McKinsey Global Institute was able to estimate "changes in demand, capital expenditures, costs and jobs, through 2050, for sectors that produce about 85% of totals and assess economic changes for 69 countries".

The report identifies six main archetypes of countries, based on the common nature of their transition exposure:

  • Fossil fuel resource producers: 13 countries like Canada, Norway, Russia, Saudi Arabia and Venezuela

  • Emissions-intensive producers: 10 countries like China, India, South Africa and Turkey

  • Agriculture-based economies: 6 countries like Morocco, the Philippines and Senegal

  • Land-use-intensive countries: 12 countries like Brazil, Colombia, Malaysia and Peru

  • Downstream-emissions manufacturers: 13 countries like Germany, Japan, Mexico and South Korea

  • Services-based economies: 15 countries like France, Israel, the Netherlands, Singapore and the United States

And once again we recall our 2022 post "Climate Changes in Geological Time" . The preface of this McKinsey report begins: "More than 10,000 years of continuous and accelerating progress have brought human civilization to the point of threatening the very condition that made that progress possible: the stability of the earth’s climate. The physical manifestations of a changing climate are increasingly visible across the globe, as are their socioeconomic impacts. Both will continue to grow, most likely in a nonlinear way, until the world transitions to a net-zero economy ..."

Click on the image below to access the page where you can download (upon registration) the 224-page report, its 64-page Executive Summary and the following 6 articles:

  • Six characteristics define the net-zero transition

  • The net-zero challenge: Accelerating decarbonization worldwide

  • The economic transformation: What would change in the net-zero transition

  • Sectors are unevenly exposed in the net-zero transition

  • How the net-zero transition would play out in countries and regions

  • Managing the net-zero transition: Actions for stakeholders


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“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.”

“I am among those who think that science has great beauty”

Madame Marie Curie (1867 - 1934) Chemist & physicist. French, born Polish.

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