McKinsey – Hard Stuff Energy Transition, 2024

The global energy system is crucial for modern life but also a major source of carbon dioxide emissions. The world is transitioning to low-emissions technologies to meet the goals of the Paris Agreement. However, this transition is complex and still in its early stages. McKinsey's research focuses on the physical challenges of the energy transition, known as the "hard stuff." This research looks at the barriers and complexities of implementing low-emissions technologies in various sectors, such as substituting fossil-fuel-based assets with cleaner alternatives. The report identifies 25 significant physical challenges across seven domains of the energy system. By addressing these challenges, stakeholders can better understand the difficulties and progress of the energy transition. The goal is to provide insights for designing a successful transition to a high-performance, low-emissions energy system that is affordable, reliable, and competitive on the path to net-zero emissions by 2050.