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