This classic McKinsey article from 2010 on their global study of the size and cost of measures to reduce greenhouse gas emissions still yields important insights for businesses and policy makers.
McKinsey have developed an integrated fact base and related cost curves showing the significance and cost of each available approach, globally and by region and sector.
A recent survey indicates that half of all companies in Europe’s energy-intensive industries regard the European Union’s Emissions Trading Scheme (EU ETS) as one of the primary factors affecting their long-term investment decisions.
Despite the controversy, one thing is certain: any form of intensified regulation would have profound implications for business.
In this article McKinsey aim to:
- give policy makers, if they choose to act, an understanding of the significance and cost of each possible method of reducing emissions and of the relative importance of different regions and sectors.
- help business leaders understand the implications of potential regulatory actions for companies and industries. Indeed, regulation is already on the minds of many executives.