To achieve net zero emissions, a significant effort is required to implement climate technologies, which are those aimed at accelerating decarbonization.
Research from McKinsey suggests that annual production of clean hydrogen, a low-carbon energy carrier, would need to increase more than sevenfold for the world to reach net zero by 2050.
“Global long-term energy storage capacity, which supports renewable energy use, needs to increase by a factor of 400 by 2040 to help the power sector reach net zero by that year.” according to the study.
“We see ten families of climate technologies as critical to meeting the net-zero challenge, and look forward to others emerging. As demand increases, companies will have the opportunity to create significant value while helping to reduce emissions.”
McKinsey analysis notes that in a scenario where the world reaches net zero by 2050, capital spending on equipment and infrastructure with relatively low emissions intensity would average $6.5 trillion a year, more than two-thirds of the $9.2 trillion in annual capital spending during that time period.
Among the ten families of climate technologies that can play an important role in mitigating carbon emissions are:
- Renewables. Solar, wind energy (on land and on the coast).
- Batteries and energy store. Everything related to electric vehicles, batteries, long-term energy and storage.
- Circular economy. Battery recycling, cellulosic chemistry, heat recovery, recycling plastics.
- Technology in buildings. Refers to geothermal heating, heat pumps, electrical, equipment.
- In industrial processes. Innovation, electrification of heat, green manufacturing of steel, green manufacturing of cement.
- Hydrogen Electrolyzers. Fuel, methane.
- Sustainable fuels. Advanced biofuels, e-fuels.
- Nature. Monitoring and verification of forests, peatlands, mangroves.
- carbon removal. Capture and storage.
- Agriculture and food. Precision agriculture, crop conservation, regenerative technology, alternative proteins.