Making a Low Carbon Economy Happen

Ben Irons, McKinsey and Company

Using low carbon abatement cost curves provides insights into what will be requirement for a low carbon economy, with a global abatement cost curve for 2030 shown. In addition to the significant opportunities across all sectors for energy efficiency, a low carbon economy will also require a low carbon power sector. In terms of investment, it is estimated that incremental investment of over €300b per year through 2015 is needed, but only a third of that investment requirement is currently attractive to investors. Energy policy will play a key role in attracting the necessary private investment.