25 technical and infrastructure problems that need to be solved before we can reach net zero

What is often missing from conversations about achieving net-zero emissions is recognition of the complexity of transforming the complex physical assets that underpin our current energy system – a system that has been optimized over centuries for high performance and is deeply embedded in the global economy, and that serves billions people. McKinsey Global Institute research has identified 25 major technology and infrastructure challenges that need to be addressed. These concern not only the development and deployment of low-emission technologies, but also the supply chains and underlying infrastructure that need to be transformed.

Like the earth continues to heat and growing concerns over climate risks ranging from extreme flooding to heat waves, world leaders are gathering in Baku, Azerbaijan for another round of climate discussions at COP29. For companies, the strategic implications of climate action – especially in an environment of increasing global uncertainty – are top of mind. Corporate leaders are thinking about how to achieve their own net-zero emissions goals and how to manage opportunities and risks to their businesses as the world strives to decarbonize today’s high-emission system.