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Category: Energy

  • The economic and environmental benefits of advanced biotechnology

    The economic and environmental benefits of advanced biotechnology

    Biotechnology is a cornerstone of all our lives: Microorganisms help produce oxygen through photosynthesis, convert atmospheric nitrogen into forms that plants can use, and decompose organic matter, and their fermentation properties are at the core of bread baking and beer brewing. Recently, technological breakthroughs in biological sciences such as genetic engineering, combined with advances in AI and engineering, have made it possible to produce sustainable, bio-based solutions in many fields, including food, cosmetics, medicine, and chemistry.

    These breakthroughs have given rise to an emerging sector known as “advanced biotechnology.” Just how significant could its economic and environmental benefits become?

    To address that question, 11 companies and not-for-profit organizations in industries such as food, cosmetics, and manufacturing, with knowledge and analytical support from McKinsey, collaborated on a research report that seeks to evaluate the potential economic and environmental impact of advanced biotechnology on a global scale over the next 15 years to 2040. The report, Harnessing the economic and environmental benefits of advanced technology, provides a fact-based and forward-looking analysis of how advanced biotechnology could be used in four industry sectors: agriculture and food, chemicals, personal care, and transportation fuels. The promise of the biotechnology applications in these and other sectors stems from its potential impact on sustainability and delivery of tangible performance gains in the end products.

    Advanced biotechnology’s full-potential effects

    If the full potential of advanced biotechnology could be achieved, the results by 2040 would be substantial for the economy and the environment. The research estimates that advanced biotechnology could do the following:

    • generate up to $1 trillion in economic value
    • reduce CO2-equivalent emissions by three to four gigatons, or the equivalent of 5 percent or more of 2022 global emissions
    • result in repurposing between two and four million square kilometers of land, about the size of India
    • save 250 to 500 billion cubic meters of water, or the equivalent of three to six times the annual water flow in the Nile

  • Green business building: Potential and challenges in Central Europe

    Green business building: Potential and challenges in Central Europe

    This article is a collaborative effort by Dan Svoboda, Jakub Zivansky, Mladen Fruk, and Tomasz Marciniak, with Marton Bekes and Oleg Prokhorenko.

    Central Europe’s economy is relatively carbon intensive, which means that building further momentum around the green transition will be critical to the success of the European Green Deal. Green businesses could also contribute significantly to the development of the region. For example, 30 years after the fall of communism, Central Europe has 30 percent of Europe’s population but accounts for only 10 percent of its GDP. As Dan Svoboda, managing partner of McKinsey’s Central Europe office, noted, “Building and scaling green businesses offers a real opportunity to close that GDP gap. With the right support and a commitment to innovation, companies in the region can lead the way in sustainable practices and create a lasting impact on the global stage.”

    In recognition of this opportunity, McKinsey held a Central European–focused Green Business Building (GBB) Summit in Warsaw, Poland, in October. This event—which was the seventh McKinsey GBB Summit held so far this year and the first to focus on Central Europe—brought together key stakeholders in the Central European green-business-building ecosystem, including industry leaders, legacy companies, start-ups, entrepreneurs, and investors.

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    Across seven breakout sessions and multiple panels, participants held in-depth discussions on key emission-reduction technologies, challenges, potential value pools, and winning operating models.

    Participants were united in their belief that the future of green businesses in Central Europe is bright. The remainder of this blog lays out a high-level summary of the opportunities and challenges for companies looking to build green businesses in Central Europe.

  • The Future of Renewable Energy: A Global Perspective

    The Future of Renewable Energy: A Global Perspective

    The transition to renewable energy sources has become one of the most pressing challenges of our time. As countries worldwide grapple with the effects of climate change, the need for sustainable energy solutions has never been more urgent.


    The Current State of Renewable Energy Renewable energy sources now account for a significant portion of global energy production. Solar and wind power, in particular, have seen remarkable growth in recent years, driven by technological advances and decreasing costs.