16 May 2024 8:52 pm

The world’s first zero-waste, low-carbon city is here

May 13, 2024

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As World Environment Day approaches, take a look inside the world’s first ‘zero-carbon, zero-waste city,’ that is the world’s first zero-waste, low-carbon city is here in Abu Dhabi.

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The world’s first zero-waste, low-carbon city is here in Abu Dhabi

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By Time Out Editors

The UAE has always been seen as being ahead of the times. From embracing advanced technology (robotic arms at petrol stations and vertiports, anyone?) to integrating AI into key industries, the sky’s the limit when it comes to innovation. And when it comes to key talking points worldwide, the same still applies, and that includes global warming. In response, Abu Dhabi planned a master development, Masdar City, which stands as a testament to human ingenuity and determination to build a greener, more sustainable future.

Spanning six square kilometres, this futuristic city is not only a symbol of going green but a living, breathing example of what cities of the future could be like.

Here’s everything you need to know about the low-carbon, eco-friendly city.

The genesis of Masdar City can be traced back to the early 2000s when the UAE leadership recognised the need to diversify its economy and reduce its dependency on oil. At the same time, concerns over climate change were gaining global attention, prompting a search for sustainable solutions. In response, the Abu Dhabi government launched the Masdar Initiative in 2006 with the goal of advancing renewable energy and sustainable development.

In 2021, the UAE was the first country in the MENA region to commit to achieving net-zero by 2050 through its UAE Net Zero 2050 Strategy.

Masdar City emerged as the flagship project of the Masdar Initiative, envisioned as the world’s first zero-carbon, zero-waste city.

The guiding principles behind its design were sustainability, innovation and quality of life. British architectural firm Foster + Partners was tasked with bringing this vision to life, combining traditional Arabic architectural elements with cutting-edge sustainable technologies.

The UAE government therefore invested $15 billion to build Masdar City, near Abu Dhabi International Airport. It is expected to become home to 50,000 people after it is fully built.

Since its inception in 2008, Masdar City has been monitoring its embodied carbon emissions. By 2022, the buildings owned by Masdar City emitted a combined total of 642 kgCO2e/m2, representing a reduction of approximately 20 per cent compared to the industry average.

In fact, in 2022, Masdar City-owned buildings achieved an average energy reduction of 38 per cent compared to international baselines. This is equivalent to avoiding 7,400 tCO2e/year of carbon emissions (or taking 1,600 cars off the road).

The world’s first zero-waste, low-carbon city is here in Abu Dhabi
Credit: Supplied

How does Masdar City work?

Powered by solar panels and wind turbines, the city has buildings that are designed to be incredibly energy efficient. The city is focused on tempering heat with natural ventilation.
The city’s narrow streets and shaded walkways draw inspiration from traditional Arabic urban planning, promoting natural ventilation and shade to combat the harsh desert climate. Buildings are clustered closely together to minimise heat gain and maximise pedestrian comfort.

Central to Masdar City’s design is its iconic wind tower, a modern interpretation of the traditional Arabic wind tower (barjeel), which acts as a natural ventilation system, drawing cool air from above and channelling it into the streets below. This innovative approach to passive cooling reduces the city’s reliance on energy-intensive air conditioning, significantly lowering its carbon footprint.

The city is powered by a combination of solar, wind and geothermal energy, with photovoltaic panels covering rooftops and facades to harness the abundant sunlight of the desert. The city’s solar farm, comprising over 87,000 solar panels, provides a significant portion of its electricity needs. Yes, that many.

In addition to generating clean energy, Masdar City prioritises energy efficiency and conservation. Buildings are designed to meet stringent green building standards, incorporating features such as high-performance insulation, energy-efficient lighting and smart HVAC systems. Water conservation is also a key focus, with greywater recycling systems and innovative landscaping techniques reducing the city’s water consumption.

Credit: Supplied

Masdar City is becoming a research hub too.

Masdar City serves as a hub for innovation and research in renewable energy and
clean technology. The Masdar Institute of Science and Technology, established in collaboration with the Massachusetts Institute of Technology (MIT), is a world-class research institution dedicated to advancing sustainable technologies. Researchers and students at the institute work on a wide range of projects, from solar energy and energy storage to urban planning and environmental sustainability.

In addition to academic research, Masdar City is home to numerous cleantech startups and companies, attracted by its supportive ecosystem and access to funding and expertise.

Getting around in Masdar City

When it comes to smart transport, look no further than Masdar City’s sustainable transportation system designed to minimise carbon emissions. At the
forefront of this system is the Personal Rapid Transit (PRT), a driverless electric vehicle network that provides convenient point-to-point transportation for residents
and visitors alike. The PRT system features small, pod-like vehicles that travel on elevated tracks, offering a quiet, efficient and environmentally friendly alternative to traditional modes of transportation.

In addition to the PRT, Masdar City has implemented other smart mobility solutions, including electric vehicles (EVs) and autonomous shuttles. These all help reduce carbon emissions and ease traffic.

Plus, the city’s pedestrian-friendly design encourages walking and cycling, with dedicated pathways and bike lanes connecting key destinations. What better way to get your steps in?

Credit: Supplied

What’s in Masdar City now?

A number of developments have grown in the eco-city including Eco Residences 1, which is a purpose-built venue for Etihad cabin crew. The 11-building unit has a dual green building certification, Platinum-certified LEED and rated 3- Pearls under the Estidama Rating System (PBRS).

Other complexes include Eco Residences 2, Central Residence with studios, one- and
two-bedroom apartments, Plaza and The Gate. Leonardo Residence, meanwhile, is close to the International Renewable Energy Agency (IRENA) Headquarters. The six-storey building has 175 apartments, each with a terrace. Dreamy.

Masdar City is also home to the Siemens regional headquarters, the first LEED Platinum-certified office in Abu Dhabi.

Then there’s the 612-flat Oasis Residences, 304-apartment Oasis Two.

This is a well-stocked community with parks and playgrounds and even a mall on site.

Masdar Park, for example, spans 20 hectares and has playgrounds, sports facilities and the Estidama Mosque. It has been built using recycled materials and has 340 solar panels generating over 300 megawatts of solar energy annually and innovative liquid nano clay for the pump track, conserving water resources.

The Central Park includes horizontal gardens, a tower that collects water vapour from the air, a falaj-style water system and play equipment powered by human movement.

Central Plaza, next to the UAE Space Agency, is an open space where you can sit and watch the world go by.

Masdar City also has an Eco Plaza with shaded seating. Take your pick.

Where can I eat at Masdar City?

There are plenty of spots to indulge your tastebuds in this city including Simply Thai, Marl’s Organic, Backout Coffee, Caribou café, Skinny Joe and Burro Blanco.

Other amenities in Masdar city

Among the other stores in the smart city are a supermarket and a pharmacy, a yoga studio (Yoga One) and a salon.

For a day at the mall, check out My City Centre Masdar, which has more than 70 stores across 18,500 square metres. It’s a smart mall too, which gets 20 percent of its annual energy from its solar panel-shaded parking area. The mall’s car park also offers eight Tesla charging stations.

Another cool way to spend the day is by taking a trip to the Visitor Center, which is divided into seven zones, which educate people about sustainable living and Masdar City through interactive and engaging exhibits.

In Zone 1, you’ll meet Amal, a metahuman guide and get to customise your journey. In Zone 2, you’ll come across an interactive master plan model. In Zone 3, you’ll learn about renewable energy projects initiated by our Masdar City’s partners, including Masdar and the Zayed Sustainability Prize.

In Zone 4, you’ll come across inspiring videos and pivotal moments in UAE’s history. Zone 5 offers a timeline of Masdar City while Zone 6 is an interactive area that allows you to learn about a sustainable future. Finally, you’ll end your journey in Zone 7 with a digital token you can keep to remind you of your trip.

The Masdar City Visitor Center is open Monday to Friday from 10am to 8pm.

How to get to Masdar City

From Abu Dhabi Corniche wend your way northeast on Corniche Rd and then take the E10 slip road. Follow this route for about 18 minutes until you reach Al Bandar St into Masdar City.

From Yas Island, Masdar City is about 11 kilometres away. Take Yas Dr St and Al Diyafah St/Al Khaleej Al Arabi St to Al Madkhal St, and you’ll arrive in about 18 minutes.

From Saadiyat Island Travel east on the E1 from Saadiyat Island towards the airport.

Continue until you reach the E10. From here, take the exit heading back towards Downtown Abu Dhabi. Next, ride along Al Bandar St and follow this into Masdar City.

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Island sets new standards in sustainable tourism

May 11, 2024

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as explained by Kengo Kuma and Associates.

Our design approach for the Ummahat AlShaykh island project, situated in the Red Sea, was deeply rooted in the site’s unique characteristics, fostering a philosophy of seamless integration with the surrounding landscape. Despite the challenges presented by the delicate environment, our site-specific approach guided us in crafting low, horizontally oriented Land Villas with gently curved roofs, mirroring the natural sand dunes. 

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Ummahat AlShaykh Island sets new standards in sustainable tourism

By Bridget Borgobello
May 11, 2024

 

VIEW GALLERY – 18 IMAGES

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In the realm of innovative architecture, few projects rival Ummahat AlShaykh Island in sheer ambition and eco-conscious design. Spearheaded by architect Kengo Kuma and his team, this project is a triumph of sustainability and luxury tourism in the heart of the Red Sea.

Kuma and his team have opted for a site-specific approach, crafting low, horizontally oriented “Land Villas” with gently curved roofs that mimic the natural contours of the surrounding sand dunes. The design of the villas not only ensures guest privacy but also minimizes sand infill, in an effort to preserves the island’s shape. In addition, taking cues from coral ecosystems, the sea villas situated offshore boast a helical structure that emerges from the sea, providing guests with stunning views across the water.

Helical structures emerge from the sea, providing guests with stunning views across the water

Kengo Kuma and Associates

“Our design approach for the Ummahat AlShaykh island project, was deeply rooted in the site’s unique characteristics, fostering a philosophy of seamless integration with the surrounding landscape,” says Kengo Kuma and Associates. “Despite the challenges presented by the delicate environment, our site-specific approach guided us in crafting [the Land Villas].”

To construct the resort, Kuma opted for the use of sustainable alternatives to traditional construction materials and methods. Prefabrication systems, primarily utilizing spruce timber and clay plaster, were adopted to minimize the use of concrete and reduce the project’s environmental footprint. The roofs are clad with natural cedar wood shingles, specifically chosen for their resilience against harsh weather conditions and salt water.

Villa designs ensuring guest privacy and minimal sand infill to preserve the island’s shape

Kengo Kuma and Associates

In a climate like the one in Ummahat, shade and ventilation are also of vital importance. The architects therefore created roofing that features large cantilevering in all of the dwellings, maximizing the shade area over the entire day.

Moreover, Kuma and his team have taken a proactive approach to environmental conservation by designing buildings that can be disassembled and removed without causing significant damage to the environment. Prefabrication played a pivotal role in achieving this goal, allowing for minimal disruption to the island’s delicate ecosystem.

As part of the Ummahat 9-3 project, Kuma and his firm also designed two specialty restaurants, one on land and one over water; a community building; spa; reception pavilion; housekeeping villas; and a guest jetty.

Villa designs ensuring guest privacy and minimal sand infill to preserve the island’s shape

Kengo Kuma and Associates

Beyond its architectural and environmental achievements, the Ummahat AlShaykh Island project holds broader significance within the context of Saudi Arabia’s Vision 2030 initiative. As part of this ambitious plan to diversify the country’s economy, the project represents a forward-thinking approach to sustainable development and tourism.

Source: KKAA

Reflections from MENA at the #SpecialMeeting24

May 10, 2024

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Reflections from MENA at the #SpecialMeeting24. Are these consistant with all MENA region’s Trends, Challenges and Opportunities?

 

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Reflections from MENA at the #SpecialMeeting24

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By 
10 May 2024
Image above (Credit: Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Maroun Kairouz, Head of Middle East and North Africa, World Economic Forum

  • World leaders came together for a two-day Special Meeting on Global Collaboration, Growth and Energy for Development.
  • The Israel-Gaza conflict was a key focus of discussion, while leaders also discussed how to achieve a just energy transition and inclusive growth.
  • Here are some of the key takeaways from speakers from the MENA region on the core themes of the meeting.

Khalil Gibran, a poet from my own village, once said, “Progress lies not in enhancing what is, but in advancing towards what will be.”

Today, the world is at an inflection point, where myriad challenges, from climate change to conflict, are creating a polycrisis that threatens such progress.

But collaboration on common goals can help countries from across the Global North and South shape a more prosperous future for all.

Saudi Arabia’s bold and ambitious Vision 2030 is transforming the kingdom, making it a fitting location for the World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy for Development, which convened under the patronage of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister, and Chairman of the Council of Economic and Development Affairs.

More than 1,000 leaders from 90 countries, including 220 government and public sector figures, came together to discuss solutions to immediate crises while laying the groundwork to create a more sustainable, resilient world.

The Middle East and North Africa region acutely faces the challenges of conflict, economic disparities and the climate crisis – and leaders from the region were at the centre of dialogues across the meeting’s core themes.

Here are some of the key takeaways from speakers from MENA.

On a just energy transition

Saudi Arabia, in one of the most water-scarce countries in the world, understands the need for urgent action on the climate crisis. But the MENA region cannot solve it alone, said H.R.H. Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, Minister of Energy of Saudi Arabia.

“Climate change and sustainability is a global issue. It cannot be attended to in regional scopes. It has to be a global response,” he said in the session People, Policy, Finance: Realizing an Equitable Energy Transition.

“We have to be conscious of the fact that we here in this room have choices that at least 60, 70% of the world population do not have. Those who are suffering from energy poverty, those who cannot make ends meet, those who are still burning trees, converting it into charcoal, and making ends meet through selling that charcoal and buying food for themselves.”

“Energy is the lifeblood of our economies, but it must be produced, supplied and consumed responsibly,” said Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning. “We cannot allow a world where some have access when others do not.”

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We must invest in clean and renewable solutions, and we must do everything we can to balance the energy trilemma of security, equity and sustainability. —Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning”— Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning

“No one should be left in the dark. But let’s be clear: none of these problems or challenges exist in a vacuum. They do not know borders,” he added.

Saad Sherida Al-Kaabi, Minister of State for Energy Affairs of the State of Qatar agreed the energy transition must be just.

“The importance is to do it in a way that’s responsible for this generation and the next, and make sure people who want to grow and countries that want to grow their economy have the same rights the richer countries have had all along,” he said.

Fatma Thabet Chiboub, Tunisia’s Minister of Industry, explained how the country is reducing its reliance on fossil fuels and the cost of energy by supporting its citizens to use solar power.

 

On driving inclusive growth

The role of technology – and AI in particular – in accelerating progress and growth was widely discussed, but MENA leaders emphasized the need to invest in people and ensure inclusive growth.

Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning, set the tone in the Special Meeting’s Opening Plenary.

“Inclusive growth is not just a lofty ideal, it is a categorical imperative,” he said.

“We must co-create a global economy that works for everyone. Where every nation has the chance to thrive, regardless of its wealth or status. This means investing in people in their skills, in their education and in their well-being.

“We must also harness and direct new technologies to benefit humanity. Artificial intelligence has the potential to contribute trillions of dollars to the global economy over the next decade.”

“International trade and globalization are the main driver for economic growth, and the main driver for inclusive growth,” said Hala H. El Said Younes Minister of Planning and Economic Development of Egypt.

“What developing and middle-income countries need is more transfer of technology, more foreign direct investment and more capacity building for their people in order to become more resilient and to become more agile to any external shocks.”

Ahmed Galal Ismail, CEO, of Majid Al Futtaim Holding, sounded a note of optimism for the region: “I think from a private sector point of view, we need to deal with the current short-term challenges, but we must not lose hope that this region is on the brink of potential, a new golden economic age.”

There are “no egos” in economic planning said Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan. “It’s OK to change and adjust” in order to deal with the multiple shocks the world is experiencing.

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You need to focus, first of all, on your own people and the human capital development. This is a long-term play that is critical. Human capital is very, very critical. —Mohammed Al-Jadaan, Minister of Finance, Saudi Arabia”— Mohammed Al-Jadaan, Minister of Finance, Saudi Arabia

But, he stressed, many countries will find it very difficult to provide quality education and healthcare for their people.

During the meeting, Saudi Arabia and the Bill & Melinda Gates Foundation pledged to work together to help protect 370 million children annually from polio and lift millions out of poverty across 33 countries.

Women leaders from the region emphasized the need for inclusion of women, young people and marginalized communities to drive growth and job creation.

Noor bint Ali Alkhulaif, Minister of Sustainable Development of Bahrain, said: “What we’re seeing is amazing in terms of recognition by the private sector of the importance of women. You cannot isolate half of society. It’s almost easy maths – you add more inputs, you get more output.”

Emon Shakoor, a Young Global Shaper from the Forum’s Riyadh Hub said: “I think of diversity as meaning being invited to the party. But inclusivity is being asked to dance. As world leaders, as government leaders, as leaders of our organizations, we must ensure that the people who work with us are always being asked to dance, that they truly feel included in these environments.”

On collaboration and conflict resolution

The Israel-Gaza conflict was uppermost in MENA government leaders’ thoughts, with calls for a ceasefire, humanitarian aid and a Palestinian state.

In his special remarks, Mahmoud Abbas, President of the Palestinian National Authority, said: “The first thing we ask for is a ceasefire. And, secondly, we want the humanitarian aid to be able to reach the Palestinian people who are in dire need of it in all of Gaza. And, third, we will not accept in any case, the displacement of Palestinians from Gaza or from the West Bank outside their country.”

The Prime Minister of Jordan, Bisher Hani Al Khasawneh, said: “The world should unite in bringing about a sustained ceasefire and ensure the continuous and sustained flow of humanitarian assistance and goods into Gaza.”

Egyptian Prime Minister Mostafa Madbouli also called for the immediate creation of a Palestinian state. “Now, not tomorrow, the whole world should gather to recognize the right of Palestinians to have their own state.”

There was a strong focus on the need for collaboration to counter growing divergence and “geopolitical recession”.

“Global collaboration is not optional,” said Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning.

“It is essential at this critical juncture … human development calls for a convergence of cultures and ideas as we are all in the same boat, and we can either collaborate to steer it towards peace and prosperity, or we will drift towards a future that is out of our control.”

Competition not conflict is needed to aid economic growth and development, said Faisal bin Farhan Al Saud, Foreign Minister of the Kingdom of Saudi Arabia.

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The scaling back of Saudi Arabia’s proposed urban mega-project

May 9, 2024

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The scaling back of Saudi Arabia’s proposed urban mega-project sends a clear warning to other would-be utopias. But

By

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There is a long history of planned city building by both governments and the private sector from Brasilia to Islamabad.

More recently, two trends have come together in a new wave of visionary urban planning.

On the one hand, there are the neoliberal “special economic zone” policies that accelerated in the 1980s and which have become an almost unquestioned global economic article of faith. On the other, there is the “smart city” in which ubiquitous sensing and surveillance generate big data, from which solutions to all the problems of cities are supposed to be found.

Read more: What is The Line, the 170km-long mirrored metropolis Saudi Arabia is building in the desert?

Our mission is to share knowledge and inform decisions.

Now, with the fairy dust of Artificial Intelligence (AI) sprinkled on top, we have the recipe for almost every current proposal for new cities. In essence, the contemporary ideal city is a data-driven, free-market paradise.

Shifting gears

The conservative and authoritarian Kingdom of Saudi Arabia is very much aware that the end is in sight for the fossil fuel economy that underpins its sovereign and private wealth. In anticipation of the inevitable end of fossil fuels, Riyadh is actively working to shift to new sources of income so as to future proof its economy in a carbon-zero world.

Some of this transitional work has involved the extension of Saudi Arabian “soft power” into areas that are of personal interest to the kingdom’s prime minister, and de facto leader, Crown Prince Mohammed Bin Salman. This is perhaps most visible through the entangling of Saudi Arabia with lucrative professional sports from golf to tennis.

However, the other bet that Saudi Arabia has been making is in cities.

U.S. Secretary of State Antony Blinken meets Saudi Crown Prince Mohammed bin Salman in Jeddah, Saudi Arabia in March 2024. (Evelyn Hockstein/Pool Photo via AP)

Under the banner of Vision 2030, it has been investing its oil profits in dozens of eye-catching urban projects from free ports to cities built around theme parks.

The Kingdom of Saudi Arabia does not have much in the way of homegrown digital or technological enterprises, so Riyadh is instead investing on the principle of if we build it, they will come. Simply put, Saudi Arabia is attempting to attract foreign entrepreneurs, manufacturers, logistics companies and tourists to ease its transition to a post-oil economy.

Look upon my works

NEOM is the most ambitious of all of Bin Salman’s plans to attract foreign investment. Indeed, the name NEOM is a portmanteau of the Greek ‘neo’ and the first letter of Mohammed Bin Salman’s name.

The published plans and publicity for NEOM are a sight to behold.

NEOM will include everything in one massive development. It will have a free port and logistics hub, a seaside tourist town and even a mountain sports playground. NEOM’s centrepiece attraction is unquestionably, however, The Line.

The Line was envisioned as a 170 km linear city clad in reflective material, that would cut into the deep desert from the Red Sea like one of the swords on the Saudi flag.

The evangelical advertisements for NEOM promised freedom and multiculturalism in one of the most authoritarian and monocultural nations on Earth, as well as total surveillance and advanced AI to underpin innovation for all its residents.

A teaser video for The Line project produced by NEOM.

An early consultancy report was even more excessive than what the actual plans became, proposing an artificial moon, fleets of drones and that 50 per cent of the “population” would be service robots.

The initial advisory board included the likes of British architect Norman Foster and the CEO of Google’s Sidewalk Labs, Dan Doctoroff. Most of the more famous advisers seem to have quietly disappeared from the project in recent years.

Scaled ambitions

Now, almost as soon as ground had been broken, it was announced that the centrepiece plan has been scrapped. The Line is no more and in its place are plans for a much smaller 2.4 km long city — a mere dash compared to The Line’s original misguided ambitions.

Was The Line all just a public relations exercise designed to generate likes and speculative foreign investment capital? In public there may have been much wonderment. However, behind the scenes the entire Line project has been nothing more than a weird, unsustainable and hubristic fantasy.

NEOM is planned to be built in one of the most geopolitically significant — and at times turbulent — areas of the world, where Saudi Arabia borders Egypt, Israel and Jordan. Perhaps even more significantly, NEOM will be built in a region where summer daytime temperatures are already heading above 50 C in our era of global heating.

An artist’s rendering of The Line project. (Shutterstock)

Who was going to want to live at the far end of a 170-kilometre long parallel terrace from which your only means of exit was an “intelligent” train system? And how was security going to be managed for a place which promised freedom and legal systems compatible with international human rights norms in one of the most authoritarian nations in the world, both internally and externally?

How would NEOM stop Saudi dissidents from escaping to or through it? Security and surveillance have never been part of the published plans, but industry publications have revealed that Bin Salman was envisioning an entirely private police force and a specialist drone surveillance control centre for The Line.

The kingdom had already scheduled the execution of three members of the Howeitat tribe who had objected to this non-consensual development on their traditional lands.

Harsh lessons

It is currently unclear as to whether other parts of the NEOM plan will be scaled back.

Work has already started on the Red Sea tourist resort town of Sindalah and it is unlikely Bin Salman will abandon the potentially lucrative Port of NEOM. Beyond that is anyone’s guess.

Many plans for ideal cities have been impractical fantasies. But NEOM also typifies a massive and persistent failure of the imagination driven by a capitalism — blinded by fossil-fuel ideology — and unable to come to terms with the necessity of confronting the climate crisis, growing global inequality and the persistence of war and genocide.

 

is a Professor of Critical Surveillance and Securities Studies, L’Université d’Ottawa/University of Ottawa

Disclosure statement

David Murakami Wood receives funding from the Social Sciences and Humanities Research Council of Canada (SSHRC).

Partners 

University of Ottawa provides funding as a founding partner of The Conversation CA-FR.

 

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A seven-point guide to getting the net zero transition on track

May 7, 2024

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A seven-point guide to getting the net zero transition on track by  whose advice is about:

  • Several key issues must be addressed to accelerate our efforts to reach net zero.
  • This includes innovative energy solutions, driving down technology costs and developing new financing mechanisms, to name a few.
  • Entirely new opportunities will also be created by the transition.

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A seven-point guide to getting the net zero transition on track

7 May 2024
Image (Credit: Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Mekala Krishnan, Senior Fellow, McKinsey Global Institute, McKinsey & Company, Humayun Tai, Senior Partner, Electric Power & Natural Gas, McKinsey & Company

 

The refrain has become disturbingly familiar: though there has been meaningful momentum, the net-zero transition is not on track.

Faced with the enormous complexity of this task, where should CEOs and policymakers focus their efforts? We have identified seven essential steps – areas where accelerating progress in the next decade is critical – for global climate goals to be met.

First, deploy lower-cost solutions to reduce emissions. The world currently emits more than 55 metric gigatons of greenhouse gases annually. Yet by 2030, relatively cheap solutions — costing less than $20 per metric ton of gas abated — could potentially decrease as much as 19 metric gigatons annually. Examples include improving energy efficiency, reducing methane emissions in fossil fuel extraction, and stopping deforestation.

Despite this, the investment needed for many of these solutions falls short. Incentives that could boost investment include tighter energy and fuel efficiency standards, rebates or tax incentives to reduce energy use, and financial incentives to protect forests.

 

Second, drive down the costs of expensive solutions. Many technologies needed to reach net zero are not yet mature and cost-competitive. Various analyses suggest that only 10-20% of the emissions reductions required by 2050 could come from technologies that are already commercially mature.

The good news here is that most of the remaining technologies exist in some form already. The power of the private sector must be unleashed to improve their viability, reduce their cost, and scale them up. In some cases, boosting funding for research and development (R&D) can help. Market-stimulating mechanisms will be important for technologies that are starting to mature.

Third, build effective financial mechanisms to drive capital where it is needed. Reaching net zero by 2050 would require trillions of dollars spent on low-emissions technologies. Many of those technologies are new, making it harder for investors to evaluate their viability and risk. Again, many of these are not yet cost-competitive likewise holding back the flow of capital. Developing countries, especially, may find raising financing particularly challenging.

Public funds and ordinary loans will not be enough. Entirely new asset classes may be necessary. These would include industrial venture capital funds, growth infrastructure funds, and “brown-to-green” funds. Scaling up blended finance, which combines public and private capital, could help increase capital flows by reducing the risk faced by private capital providers. Incentives to reallocate companies’ capital resources from high- to low-emissions businesses could also be useful.

Fourth, anticipate and remove physical bottlenecks. The transition at its core is a massive physical transformation. The transition requires an enormous supply of minerals, manufactured goods, land, new infrastructure (for example EV charging networks, electrical grids, and hydrogen pipelines), and a great deal of labour to build and operate all those assets.

Bottlenecks could limit access to these inputs, especially between now and 2030. Long lead times are often a problem. For example, starting a new mine can take five to 15 years. The availability of necessary skills or concentration of minerals and manufacturing capacity in a handful of countries also poses challenges.

Stakeholders can address bottlenecks by unlocking supply and reducing demand for these inputs. Examples include recycling materials, training workforces, developing new battery chemistries that rely less on highly scarce materials, and streamlining permitting processes for new infrastructure.

Fifth, revamp energy markets and planning approaches for an electrified world. In a world of net zero emissions, electricity systems could provide about three times as much energy as they do today, and the share of all electricity generated by wind and solar power would also likely grow.

This would require the redesign of electricity markets and planning approaches to build flexible capacity. Such assets must be able to provide electricity when wind and solar cannot and would include batteries and nuclear plants. Incentives will also be needed to build transmission and distribution infrastructure. Another issue is accounting more carefully for weather, both because of the increase in wind and solar generation (which depend heavily on weather conditions) and the changing climate.

Sixth, manage existing and emerging energy systems in parallel. As the net zero transition unfolds, the world will need to run two energy systems in parallel: Smoothly ramping down the old, fossil fuels–based one while scaling up the new.

It will be critical to scale up the new energy system as quickly as possible. But even according to demand scenarios in which global warming is kept at 1.5°C, fossil fuels will continue to play a part in the energy mix in the next few years. An important step, therefore, is to reduce Scope 1 and 2 emissions from fossil fuel operations as much as possible.

And any future investments in the fossil fuel system must be made carefully. We must ensure a robust energy supply and prevent price volatility while sustaining the net zero transition.

Seventh, compete for opportunities created by the net zero transition using comparative advantage as a guide. As demand for high-emissions products falls, jobs and output in some parts of the economy may be impacted. This will require reskilling and support to workers and affected communities.

Importantly, entirely new opportunities will also be created by the transition. As countries and companies begin to explore these areas, they should be guided by their potential to gain comparative advantages. Some countries could benefit from their natural endowments like access to sunshine or critical minerals. Other countries and companies may have technical know-how to help them manufacture the goods needed for the transition.

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