|July 24, 2009|
McKinsey Backs Energy Efficiency
|A new report released by the consulting firm, McKinsey & Company illustrates that a $520 billion dollar investment in promoting energy efficiency could save $1.2 trillion by the year 2020. |
In this report, McKinsey & Company offers a detailed analysis of the magnitude of the efficiency potential in non-transportation uses of energy, a thorough assessment of the barriers that impede the capture of greater efficiency, and an outline of the practical solutions available to unlock the potential.
The research shows that the U.S. economy has the potential to reduce annual non-transportation energy consumption by roughly 23 percent by 2020, eliminating more than $1.2 trillion in waste - well beyond the $520 billion upfront investment (not including program costs) that would be required. The reduction in energy use would also result in the abatement of 1.1 gigatons of greenhouse gas emissions annually - the equivalent of taking the entire U.S. fleet of passenger vehicles and light trucks off the roads.
Such energy savings will be possible, however, only if the United States can overcome significant sets of barriers. These barriers are widespread and persistent, and will require an integrated set of solutions to overcome them - including information and education, incentives and financing, codes and standards, and deployment resources well beyond current levels.
In addition to the above central conclusion, five observations will be relevant to a national debate about how best to pursue energy efficiency opportunities of the magnitude identified and within the timeframe considered in this report. Specifically, an overarching strategy would need to:
To view the full report click the following link: