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Climate Change Special Initiative - Latest Thinking

Please review some of our latest thinking on climate change.
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Carbon Economics 
Energy Efficiency 
Water 
Biosystems and Land Use
Clean Technology 
Sustainability Transformation

 
Carbon Economics
The U.S. low carbon economics tool
March 2010
A new model enables analysis of the potential economic implications of a wide variety of possible energy and climate policies.
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Shaping climate-resilient development: A framework for decision making
September 2009
Societies have a window of opportunity today: a chance to put in place workable, cost-effective programs that greatly improve their levels of climate adaptation and in so doing boost sustainable development.
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Environmental and energy sustainability: An approach for India
August 2009
As India continues to develop, it has choices to accomplish its twin objectives of sustainable development and inclusive growth. India could choose to increase its focus on clean and efficient technologies and practices to meet these objectives.
Download report (PDF - 2.59 MB)
Energy: A key to competitive advantage—New sources of growth and productivity
July 2009
As energy is becoming a strategic factor in competition globally, it offers a special growth opportunity for Germany, the focus of this report. One major source of growth is apparent across many sectors: energy efficiency and environmental technology.
Download this report (PDF - 2.26 MB)
Profiting from the low-carbon economy
McKinsey Quarterly, June 2009
The shift to a low-carbon economy has already begun. As cap-and-trade schemes and other regulations proliferate and more companies and industries come within their ambit, the need for financing and trading will grow enormously. Banks, investors, and exchanges have critical roles to play in shaping this transition to a low-carbon economy.
Read more on McKinsey Quarterly site
China's green opportunity
McKinsey Quarterly, May 2009
Five major categories of energy efficiency and greenhouse gas-abatement opportunities can deliver big energy savings to China without a significant disruption in its economic growth.
Read more on McKinsey Quarterly site
Promoting energy efficiency in the developing world
McKinsey Quarterly, February 2009
Developing economies have a huge opportunity to strengthen their economic prospects by boosting their energy productivity.
Read more on McKinsey Quarterly site
Economic opportunities in a low-carbon world
January 2009
Taking strong steps to restrain climate change need not invite economic gloom.
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Banking on carbon assets
McKinsey Quarterly, 2008 December
A new regulatory environment for greenhouse gas emissions could hold good news for banks.
Launch this article (PDF - 168 KB)
Not sky-high
Newsweek International, 2008 November 15
We can dramatically reduce greenhouse gases and grow the global economy for less than we think.
Read more on the McKinsey Global Institute site
How climate change could affect corporate valuations
McKinsey Quarterly, October 2008
Efforts to reduce climate change can profoundly affect the valuations of many companies, but executives so far seem largely unaware.
Read more on McKinsey Quarterly site
The carbon productivity challenge: Curbing climate change and sustaining economic growth
The McKinsey Global Institute, June 2008
Meeting commonly discussed greenhouse gas abatement paths by 2025 while maintaining economic growth will require a tenfold increase in "carbon productivity," the amount of GDP produced per unit of carbon equivalents emitted. The macroeconomic costs of this "carbon revolution" are likely to be manageable.
Read more on the McKinsey Global Institute site
What countries can do about cutting carbon emissions
McKinsey Quarterly, April 2008
Greenhouse gas emissions can be cut significantly—and, surprisingly, without huge disruption.
Read more on McKinsey Quarterly site
Cutting carbon, not economic growth: Germany's path
McKinsey Quarterly, April 2008
Germany can go on cutting its greenhouse gas emissions substantially, but difficult trade-offs loom.
Read more on McKinsey Quarterly site
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Energy Effficiency
Lean for green manufacturing
January 2010
Manufacturers have many reasons to reduce their environmental impact, yet many are missing substantial opportunities to become greener without having to make significant investments. By adapting the lean approach to include energy efficiency, a new green production system can be designed, helping firms to reduce their CO2 emissions by 10 to 15 percent.
This article had been published on the Operations Extranet first
Launch this article (PDF - 420 KB)
Increasing the energy efficiency of supply chains
McKinsey Quarterly, August 2009
The supply chains of many manufacturing sectors went global when oil was cheap; today, improving energy efficiency is a top concern for executives. This interactive shows numerous opportunities to dramatically reduce energy costs in supply chains.
Read more on McKinsey Quarterly site
Unlocking energy efficiency in the U.S. economy
July 2009
In this report, McKinsey & Company offers a detailed analysis of the magnitude of the efficiency potential in nontransportation uses of energy, a thorough assessment of the barriers that impede the capture of greater efficiency, and an outline of the practical solutions available to unlock the potential.
Download executive summary (PDF - 1.52 MB)
Download full report (PDF - 6.37 MB)
Data centers: How to cut carbon emissions and costs
November 2008
The demand for data center capacity worldwide has led to a sharp rise in IT costs and a steady increase in carbon emissions. A new efficiency metric provides companies with a clear yardstick for measuring progress.
Launch this article (PDF - 636 KB)
Using energy more efficiently: An interview with the Rocky Mountain Institute's Amory Lovins
July 2008
Amory Lovins argues that market forces, not regulation, will play the key role in promoting more efficient energy consumption.
Launch this article (PDF - 437 KB)
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Water
Next-generation water policy for businesses and government
McKinsey Quarterly, December 2009
The solution to water scarcity, in part, will come from new technologies for better managing water as a resource. But to make these technologies more effective, business and policy leaders will need to work more closely to implement them.
Read more on McKinsey Quarterly site
The business opportunity in water conservation
McKinsey Quarterly, December 2009
For many companies, water efficiency is a long-term requirement for staying in business, a big commercial opportunity, or both.
Read more on McKinsey Quarterly site
Charting our water future
November 2009
While meeting competing demands for water is a considerable challenge, this report provides greater clarity on the scale of that challenge and how it can be met cost effectively.
Read more on the CCSI Water site
Global corporate footprint—risks, opportunities, and management options
November 2009
This paper explores global water challenges that are of particular relevance to large corporate users, presents analytical approaches that can help companies make better decisions about water, and outlines recommendations for the years ahead.
Read the report (PDF - 649 KB)
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Biosystems and Land Use
Fueling the next era of power generation in Europe
December 2008
To achieve the European Union's renewable-energy goals, generators will have to take a more active role in mobilizing supplies and shaping the regulatory framework.
Launch this article (PDF - 406 KB)
Betting on biofuels
McKinsey Quarterly, 2007 Number 2
The industry is still in its infancy but evolving rapidly. Companies that hope to compete must devise their entry strategy now.
Read more on McKinsey Quarterly site
Positioning Brazil for biofuels success
McKinsey Quarterly, Special Edition: Shaping a new agenda for Latin America, 2007
Brazil's ethanol industry is well positioned for growth, but surging demand will challenge the industry.
Read more on McKinsey Quarterly site
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Clean Technology
Evaluating the potential of solar technologies
McKinsey Quarterly, September 2009
Solar power is poised to grow into a reliable alternative energy source, promising lower carbon emissions and decreased dependence on fossil fuels. What technologies are currently jostling for leadership in the market?
Read more on McKinsey Quarterly site
China and the US: The potential of a clean-tech partnership
McKinsey Quarterly, August 2009
Only a collaboration between the two countries will create an environment where clean-energy technologies can thrive.
Read more on McKinsey Quarterly site
Electrifying cars: How three industries will evolve
McKinsey Quarterly, June 2009
Upon entering the mainstream-in a few years or a couple of decades-electrified cars will transform the auto and utilities sectors and create a new battery industry. What will it take to win in a battery-powered age?
Read more on McKinsey Quarterly site
Roads toward a low-carbon future: Reducing CO2 emissions from passenger vehicles in the global road transportation system
March 2009
Meaningful, cost-effective reductions in carbon emissions from passenger vehicles will entail an integrated approach involving a broad range of measures. These measures could include vehicle upgrades for greater fuel efficiency, broader use of biofuels, swift improvements to road and traffic infrastructure, greater use of public transportation, and driver education to capture the benefits of more fuel-efficient eco-driving.
Download report (PDF - 793 KB)
What is carbon capture and storage?
McKinsey Quarterly, January 2009
Executives and public policy makers should familiarize themselves with the technologies involved in carbon capture and storage (CCS) as they work toward reducing carbon dioxide levels in the atmosphere.
Read more on McKinsey Quarterly site
Renewables in China: Opportunity or threat?
December 2008
Companies should use China to keep abreast of dynamic changes in the industry and as a manufacturing platform to stay ahead of the game globally.
Launch this article (PDF - 876 KB)
Pioneers to industrialists: How to grow profitably as the renewables sector matures
December 2008
As the industry grows to substantial size, its complexity will increase, making success and returns more difficult to attain.
Launch this article (PDF - 374 KB)
Renewable energy: Bridging India's power gap
December 2008
Large and growing electricity shortages, as well as favorable natural conditions, make the future of renewable energy in India very bright.
Launch this article (PDF - 419 KB)
How to operate and maintain wind assets
December 2008
Superior O&M practices are critical to achieving optimal profitability of wind farms and can increase return to shareholders by 20 percent.
Launch this article (PDF - 375 KB)
The future of wind and solar power: An executive roundtable
December 2008
International leaders from several high-profile companies discuss the future of the wind and solar industries.
Launch this article (PDF - 768 KB)
China charges up: The electric vehicle opportunity
November 2008
China has an opportunity to establish a global position in this nascent but rapidly growing market.
Launch this article (PDF - 244 KB)
How IT can cut carbon emissions
October 2008
Information and communications technologies will become a major source of greenhouse gas emissions but can abate far more of them.
Launch this article (PDF - 377 KB)
Carbon capture and storage: Assessing the economics
September 2008
Carbon capture and storage has the potential to play a significant role in the European and global response to climate change. However, there are uncertainties to overcome, and this will impact on its cost.
Launch this article (PDF - 405 KB)
The economics of solar power
July 2008
Don't be fooled by technological uncertainty and the continued importance of regulation; solar will become more economically attractive.
Launch this article (PDF - 364 KB)
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Sustainability Transformation
Helping 'green' products grow
October 2008
When customers reach the cash register, they often forget their eco-friendly attitudes. Businesses can do a lot more to help would-be “green” consumers walk their talk.
Launch this article (PDF - 915 KB)
Cultivating the green consumer
Stanford Social Innovation Review, September 2008
Businesses can do a lot more to help would-be green consumers turn their talk into walk.
Read the article
Climate change and supply chain management
August 2008
Top companies regard climate change as an opportunity to get closer to suppliers—effectively reducing costs and carbon in their supply chains.
Launch this article (PDF - 228 KB)
The carbon imperative
Spring 2008
Amid all the debate about global warming, one thing is certain: procurement leaders hold the most important keys for carbon compliance.
Launch this article, published in CPO Agenda (PDF - 232 KB)
Business strategies for climate change
McKinsey Quarterly, April 2008
Huge value is at stake. The winners will be companies that reposition themselves to seize the opportunities of a low-carbon future.
Read more on McKinsey Quarterly site
Addressing consumer concerns about climate change
McKinsey Quarterly, March 2008
A McKinsey Quarterly survey finds that businesses must act on global warming and other issues to narrow a general trust gap between them and the public.
Read more on McKinsey Quarterly site
How companies think about climate change: A McKinsey Global Survey
McKinsey Quarterly, February 2008
A McKinsey Quarterly survey finds that most executives think climate change matters for their companies. Although few have taken action, they are optimistic about the possibilities.
Launch this article (PDF - 524 KB)
Read more on McKinsey Quarterly site
Investing in sustainability: An interview with Al Gore and David Blood
McKinsey Quarterly, 2007 Web exclusive
The former US vice president and his partner in an investment-management firm argue that sustainability investing is essential to creating long-term shareholder value.
Launch this article (PDF - 528 KB)
Read more on McKinsey Quarterly site
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