
The energy transition is a monumental task, and still in its early stages, with only about 10 percent of the necessary low-emissions technologies deployed to meet 2050 net-zero targets. While progress has been made, the physical realities of this transition are far more complex than often recognized. What will it take to tackle the remaining 90 percent? How can the world decarbonize an energy system optimized over centuries in just a few decades, while maintaining its high performance and meeting growing demand and societies’ needs? From scaling renewable energy and addressing the variability of power sources, to the development of critical raw materials and new low-emission fuels such as hydrogen, the transition requires a physical transformation that involves deploying new technologies, overhauling supply chains, and building infrastructure on an unprecedented scale. Drawing on the findings of a new McKinsey Global Institute report, this flash talk will explore the most pressing challenges, strategies for overcoming systemic bottlenecks, and the role of innovation in shaping the future of global energy systems. By understanding the physical realities of the energy transition – the “hard stuff” - private sector leaders and policy makers can shape a more affordable, reliable, and competitive path to net-zero.
McKinsey is a 2024 Concordia Annual Summit Core Programming Sponsor.