Levers were considered both as they exist today and if they were to be applied at scale. These archetypes represent about three-quarters of the built environment.įor each archetype, the net cost of applicable levers was compared with the cost of traditional practices. This involved comparing their impact and technical applicability across six asset archetypes: single- and multifamily dwellings, commercial low- and high-rise buildings, industrial buildings, and infrastructure. Out of these, we selected the most promising levers for more rigorous examination. To find the most effective solutions to reduce emissions, we analyzed more than 1,000 levers for their abatement potential, cost-effectiveness, and scalability. By creating partnerships and focusing their efforts and investments, ecosystem players can find mutually beneficial ways forward while building a net-zero world. In these efforts, all companies in the ecosystem can have significant roles to play. Together, the 22 levers we highlight can potentially reduce overall emissions from the built environment by up to 75 percent if implemented at scale in the next five to ten years. This report identifies 17 such opportunities that could prove particularly attractive for industry players. However, those that act now will likely be able to take advantage of powerful new business opportunities as global decarbonization gains traction. Because today’s value chains are often fragmented and localized, industrialization poses its own challenge. This article is a collaborative effort by Brodie Boland, Shailesh Lekhwani, Sebastian Reiter and Erik Sjödin, representing views from McKinsey Sustainability for the report “Building value by decarbonizing the built environment.”įurther decarbonization levers would be cost-effective by 2030 if they are industrialized-that is, produced and implemented at scale with a focus on quality, cost, and time to market.
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