CO2 removal is a crucial step on the path to achieving net-zero emissions. Getting there, however, requires hefty investments, senior partner Mark Patel and colleagues explain. To meet 2050 net-zero goals, as much as $16 trillion in cumulative investment in CO2 removal may be needed—but investment so far is only $5 billion to $13 billion. The gap between expected investment and what is need by the end of this decade to achieve 2050 targets is $400 billion to $1.6 trillion.
Image description:
Four area squares show the actual range of net-zero investment, compared with the projected need in different scenarios. The investment to date is $5 billion–$13 billion. The required investment by 2030 is $500 billion–$2 trillion, but the expected investment is only $100 billion–$400 billion. By 2050, the cumulative investment is $6 trillion–$16 trillion.
Source: McKinsey analysis using method-specific costs from McKinsey’s Carbon Management Service Line models, climatic-need volumes from the Intergovernmental Panel on Climate Change, and expected investments estimated based on publicly announced carbon dioxide removal projects.
End of image description.
To read the report, see “Carbon removals: How to scale a new gigaton industry,” December 4, 2023.