The global energy transition is entering a new phase. These ten McKinsey Explainers highlight what leaders need to know to grow through—and not just react to—the new climate era.
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Humanity stands at an inflection point. Our climate is warming at a concerning pace, and if we don’t take action, the situation will only worsen. But the global energy transition is entering a new phase of acceleration toward meeting the goals of the 2015 Paris Agreement. More leaders are realizing that their organizations can’t thrive in a world with cascading crises and unmanageable climate risks. And the most forward-looking leaders can set an example by demonstrating what’s possible. Here are ten critical pieces of the sustainability puzzle.
What is net zero?
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Net zero is an ideal state where the amount of greenhouse gases released into the Earth’s atmosphere is equal to the amount removed. Emission removal and reduction through decarbonization efforts are needed to reach net zero.
What are natural climate solutions?
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Natural climate solutions, or NCS, are nature-based actions that either reduce or sequester greenhouse gas emissions, helping to protect, restore, and manage nature to further global climate goals.
What is COP?
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COP refers to the United Nations’ annual conference on climate change. Its 29th meeting, COP29, is scheduled to begin November 11, 2024, in Baku, Azerbaijan.
What is decarbonization?
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Decarbonization is the reduction and removal of carbon dioxide and other greenhouse gases from the atmosphere.
What is wind energy?
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Wind energy is a renewable source of electrical or mechanical power that could help transform the energy sector.
What is biodiversity?
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Biodiversity is the multitude of diverse organisms across an ecosystem. It is essential for supporting the health and sustainability of all life on Earth.
What is hydrogen energy?
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Hydrogen energy is an alternative to fossil fuels that may represent a cleaner way to power our world.
What are sustainable fuels?
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Sustainable fuels are made from renewable materials instead of from fossil fuels. They include biofuels made from organic matter, so-called green gasoline, and hydrogen-based fuels.
What are Scope 1, 2, and 3 emissions?
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Scope 1, 2, and 3 emissions are greenhouse gases that are released across an organization’s entire value chain. Scope 3 emissions are the most complex, as they are released before and after a product is delivered or consumed.
What is the global stocktake?
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The global stocktake is an assessment of progress made toward mitigating global warming since the Paris Agreement in 2015. The results from the first-ever global stocktake were discussed at COP28.
