Commit or quit. Climate change presents this scenario. If we don’t take action, we’ll lose our homes. That is where climate tech cash helps nations to take an enormous climate action.
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90% GHG Emissions incise possible?
We already have the technology to reduce greenhouse gases. We just need to use it on a larger scale. McKinsey & Co. says that if we use carbon capture, heat pumps, and other technologies on a large scale, we can cut global greenhouse gas emissions by up to 90%.
“We need to go bigger and faster,” said Mark Patel, a senior partner at McKinsey in San Francisco who focuses on climate-related technologies.
12 Types Of Climate Tech’s Massive Usage for reduction of 90% GHG Emissions target
McKinsey says 90% of emissions can be reduced by 12 types of climate tech. However, only 10% are currently competitive, and another 45% are available but need to become cheaper to compete with existing carbon-intensive technologies. The rest have great potential but are still being developed.
Patel said that to get the most out of climate tech, it needs to be used on a large scale He gave the message last Wednesday at a Climate Week reception for investors and entrepreneurs in a Manhattan skyscraper. It was a great place to talk about scale, with the Statue of Liberty and the Verrazano Bridge in view.
“To have an impact on CO2 and reach the 2050 goal, we need to speed up while also increasing scale,” he told those in attendance.
“It’s not just about making things bigger. McKinsey studied the growth of earlier climate tech, like solar, wind, and batteries, to help newer tech become cost-competitive with fossil fuels. Deployment increases can lead to cost reductions of at least 70%,” he added.
Investors needs to be confident regardless climate tech investment becomes successful or otherwise
Patel said this relationship is predictable and reliable. Investors should be confident that rapid scaling will lead to cost cuts and faster adoption. Investors need confidence because climate tech investing isn’t always successful. “It makes sense that the more scale, the lower the unit cost. But in climate tech, many promising technologies don’t reach a unit cost that’s as low as fossil fuels or existing incumbents,” Patel said.
Standard Chartered’s CEO, Bill Winters accentuated on scaling of Carbon Markets
Patel isn’t the only one urging action on climate change. During Climate Week, Standard Chartered CEO Bill Winters said that efforts to improve the voluntary carbon market will only have a limited impact unless it grows much larger. “If it’s not scaled, what’s the point?” Winters said. “If we don’t invest billions, we won’t make the impact we need to make.”
GenZero’s CEO, Frederick Teo emphasized on ‘nature-based solutions’
Frederick Teo, CEO of GenZero, an investment company founded by Temasek, said in New York that any plan to tackle climate change must include the power of nature. Nature-based solutions include conserving or restoring natural ecosystems like forests or mangroves to sequester CO2.
“If you know what needs to change to make a difference, then nature is important,” he said.
New York discussions also covered how to increase nuclear energy and meet a 2030 renewable energy goal set at last year’s UN climate summit.
Time- a big part for it
“Time is a big part of the equation for fighting climate change,” Patel said. “We can affect scale, cost, and speed.”
Lastly…
US Federal Reserve rate cuts won’t help the green transition. A cycle of interest-rate cuts won’t revive the green transition, says Barry Norris, founder and chief investment officer of UK hedge fund Argonaut Capital Partners. “For years, energy-transition insiders thought the industry’s problems were caused by high interest rates,” he said. Interest rates are falling, yet sentiment in this market is poor.
