Decarbonization and Low-Carbon Energies

We help oil and gas companies cut emissions, scale low-carbon energy, and unlock sustainable value.

We support oil and gas companies in reducing emissions and scaling low-carbon energy solutions, combining deep industry expertise with advanced technologies to unlock sustainable value and long-term growth.

Decarbonization and the transition to low-carbon energy are no longer optional—they are central to how industries grow, compete, and meet regulatory and societal expectations. We work with governments, companies, and investors to help them turn ambitious climate goals into tangible outcomes while ensuring long-term resilience and economic value.

We support our clients in several key areas:

Decarbonization strategy: We help organizations define clear, actionable pathways to reach their decarbonization and low-carbon energy ambitions based on data, industry benchmarks, and financial feasibility. Whether it is a heavy industrial company looking to cut emissions or a national entity shaping its green policy, we bring tailored guidance that aligns climate ambition with core business goals.
Low-carbon business building: We partner with companies to design and scale new green businesses, such as sustainable fuels, energy efficiency, or green hydrogen. From initial market assessment to full operational launch, we help bring these ventures to life.
Technology and investment planning: We identify the most promising technologies and investment strategies to enable cleaner operations, working closely with engineering and operations teams to ensure ideas are feasible, bankable, and scalable.
Operational decarbonization: We drive emissions reductions within existing operations, optimizing energy efficiency, shifting to cleaner fuels, and redesigning supply chains. These efforts are backed by our proprietary abatement cost curves, emissions modeling tools, and AI-driven operational analytics (in collaboration with QuantumBlack, AI by McKinsey).
Capability building and governance: We support organizations in building the internal skills, governance structures, and culture needed to sustain climate action over time. This includes setting up an effective climate project management office (PMO), training cross-functional teams, and embedding decarbonization into day-to-day decision-making.

Our team includes over 1,000 professionals around the world dedicated to sustainability and the energy transition, supported by experts in operations, strategy, technology, and finance. We are committed to helping companies lead in a low-carbon economy while creating competitive advantage through climate action.

Examples of our work

With a strong history of successful projects, we help companies address decarbonization challenges by combining global experience, in-depth knowledge in energy and sustainability, and a clear strategic approach. Our recent work reflects our focus on delivering effective results.

Rapid value assessment for a petrochemical company

Partnered with a petrochemical company that was targeting ~10 percent energy savings to overcome execution delays and strengthen its road map. A three-week rapid value assessment at one of the company’s sites identified the necessary benchmarks, as well as €124 million to €133 million in potential savings. The assessment also confirmed €42 million in savings and outlined a one- to two-year payback plan. The effort also identified a potential CO₂ reduction of around 360 kilotons per year.

Energy transformation in a pulp and paper company

Worked with a European pulp and paper company that was facing cost pressures to improve energy efficiency. A rapid diagnostic and a three-month assessment revealed a 24 percent savings potential at the best-performing mill. Over 18 months, improvements were rolled out across ten mills. This cut energy costs by an average of 38 percent per mill, implementing 15 percent savings in year one, with over €200 million recurring benefit identified in total from over 600 initiatives.

Capital optimization for a renewable natural gas company

Partnered with a leading renewable natural gas company planning over $2 billion in investments to address high project costs, design and supply challenges, and tight timelines. Over seven weeks, opportunities were identified to reduce project capital expenditure by more than 20 percent. Immediate savings of $3 million to $4 million were achieved through changes in the approach. A detailed 18-month plan was created to ensure long-term savings.

Biofuels strategy and execution for an oil and gas company

Worked with an oil and gas company to scale its biofuels capacity, establish itself as a leading regional player, and expand into low-carbon energy by developing new sources of green EBITDA. The end-to-end project spanned initial strategy creation to the launch of the business, including a six-month joint venture analysis for a new hydrotreated vegetable oil asset. Feedstock sourcing identified opportunities that covered about triple the company’s needs, while over 400 ideas for optimization delivered an NPV uplift of over 10 percent of capital expenditure.

Featured Capabilities

We provide proprietary tools, data, and methods to design and implement decarbonization strategies and optimize energy transitions.

Catalyst Zero

Catalyst Zero is a modular, customizable platform designed to help organizations meet their decarbonization commitments.

Features: Assesses carbon footprints, sets decarbonization targets, and evaluates financial impacts of emissions reduction strategies.
Levers: Utilizes McKinsey’s Decarbonization Lever library and marginal abatement cost curves (MACC) to prioritize cost-effective actions.
Applications: Supports product decarbonization, real-time reporting, and alignment with standards such as the Science Based Targets initiative, the Greenhouse Gas Protocol, and the Task Force on Climate-Related Financial Disclosures.

Sustainable Fuels Demand Model

The Sustainable Fuels Demand Model estimates global demand for over 15 fuels, assessing the role of sustainable fuels in meeting regulatory and net-zero targets. Its features include:

Demand forecasting: Provides a dynamic projection of sustainable fuel demand across production routes, fuel types, and feedstock mixes.
Scenario analysis: Evaluates the impact of regulatory changes, technical constraints and advancements, and feedstock availability.
Supply forecasting: Tracks supply at regional level per fuel and feedstock type, revealing implications on margins and value pools.
Strategic planning and future scenarios: Helps companies create strategies to meet energy transition goals and regulations while providing clear insights into long-term global trends and feedstock movements.

Sustainable Fuels Production Cost Model

The Sustainable Fuels Production Cost Model helps clients identify the most cost-competitive pathway for producing sustainable fuels. Its features include:

Supply availability and potential, which assesses feedstock availability by source and across over ten regions.
Production pathways and technologies that valuate advanced fuel production methods, such as hydroprocessed ether and fatty acids, alcohol-to-jet, gasification-Fischer-Tropsch, methanol, and renewable natural gas.
Production cost estimation, which includes capital expenditure and operating expenditure estimation.

Our people

Featured insights

Aerial view Real time Footage of above Brisbane river over Kurilpa Bridge, Victoria Bridge and Captain Cook Bridge beside Modern Office Building at night time in Brisbane, Queensland, Australia, Business Financial Industry and Travel Destination Concept

Report

Global Energy Perspective 2025

October 13, 2025 -

Geopolitical uncertainty, shifting policies, and increasing demand for power are reshaping the energy landscape. In this year’s report, we present our updated view on what’s to come in the energy system.

Collection

Decarbonizing the world’s industries: A net-zero guide for nine key sectors

The sectors that produce the majority of global greenhouse-gas emissions face a steep challenge to decarbonize, but our research shows that solutions are within reach. In many cases, a transformation is well underway. This collection draws together articles and reports that lay out a pathway to net zero for nine emissions-intensive industries.

Article

The Iberian green industrial opportunity: Carbon capture and storage

July 10, 2025 -

Carbon capture and storage could play a critical role in decarbonizing hard-to-abate industries in the Iberian Peninsula.

Looking down, we can see an oil rig's drill in the North Sea. The rig's equipment is painted a vibrant shade of yellow and we can see the deep blue water and waves beneath it.

Article

The true cost of methane abatement: A crucial step in oil and gas decarbonization

November 21, 2024 -

The upstream oil and gas sector alone could cut as much as 4 percent of global greenhouse gas emissions. But this will take worldwide cooperation among industry players and capital investors.