The latest insights from McKinsey's Global Energy Perspective 2024 report bring us a stark reminder: our path to achieving the Paris Agreement’s 1.5°C (34.7°F) climate target remains critically under-addressed. As the report highlights, global CO₂ emissions are set to rise until at least 2025, calling for an accelerated and immediate transition to cleaner energy and innovative solutions across all sectors.
McKinsey lays out four primary pathways that illustrate potential futures in our global climate journey:
- 1.5°C Pathway – This ambitious scenario depends on rapid global adoption of low-carbon technologies and significant international cooperation. It’s a transformative approach requiring high levels of investment, technological adoption, and commitment across sectors to achieve net-zero emissions by mid-century.
- Sustainable Transformation – A realistic yet challenging pathway, this scenario focuses on widespread decarbonization. However, it falls short of the 1.5°C target, leading to a projected temperature rise of 1.8°C (35.2°F). Although promising, this trajectory reveals that current efforts would still expose us to critical environmental risks.
- Continued Momentum – With a projected temperature increase of 2.2°C (36°F), this scenario reflects uneven and delayed adoption of clean technologies. The likely social, economic, and ecological impacts underscore the pressing need for more balanced, systematic action to transition away from fossil fuels.
- Slow Evolution – This pathway sees a 2.6°C (36.7°F) rise, shaped by piecemeal efforts and fragmented progress. The severe consequences anticipated under this scenario highlight the essential role of cohesive policies and the critical need to avoid this future.
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The data indicates that we are currently on track for a scenario somewhere between the Continued Momentum and Slow Evolution pathways. As McKinsey notes,
"the energy transition requires broad and immediate action, with significant emphasis on scaling renewables, accelerating technology deployment, and implementing policy changes."
A key challenge is the mismatch between ambition and action. While momentum in regions like Europe and China is promising, with ambitious targets for solar, wind, and electric vehicles, other regions lag, often constrained by economic factors and policy limitations. McKinsey's report finds that
“a lack of infrastructure, insufficient investment in clean technologies, and limited global cooperation threaten to stymie meaningful progress."
The Intergovernmental Panel on Climate Change’s (IPCC) also highlights the urgency, noting that “global GHG emissions must peak before 2025” and decrease sharply to limit warming. Yet, even if nations fulfill their climate pledges, we’re still on track for an average temperature rise of approximately 2.4°C by 2100. The window for a meaningful shift is narrowing rapidly.
The built environment’s role in the climate challenge
The built environment is a major contributor to global emissions, with operational energy use in buildings accounting for nearly 30% of total energy consumption and about 27% of CO₂ emissions. Despite efficiency gains, emissions from building operations continue to increase, driven largely by energy demand for heating, cooling, and electricity. UNEP's Global Status Report for Buildings and Construction warns that to meet climate goals,
"energy intensity in building operations must decrease by 37% from 2015 levels by 2030—a rate nearly five times faster than current progress."
To decarbonize operations, a rapid shift to energy-efficient technologies, electrification, and renewables is essential. IEA notes that electricity now comprises about 35% of buildings’ energy use, yet the reliance on fossil fuels continues to hinder emissions reduction efforts. Enhanced policies, expanded building energy codes, and increased use of digital monitoring solutions can significantly reduce emissions in this sector.
What CIM is doing to drive change
At CIM, we recognize the pressing need for actionable steps within the built environment, which contributes nearly 40% of global greenhouse gas emissions, primarily from building operations. Our PEAK Platform is designed to address this challenge by enabling property owners and operators to run their buildings with ease, achieving higher levels of operational and energy efficiency, directly supporting emissions reductions while enhancing overall asset performance.
By aligning our technology and services with the demands of a sustainable energy future, PEAK empowers our clients to meet their decarbonization targets and contribute to a more sustainable world. Through collaboration and advanced technology, we are determined to make a measurable impact on climate action, one building at a time.
Sources:
McKinsey & Company, Global Energy Perspective 2024
UNEP, Global Status Report for Buildings and Construction
IEA, Net Zero Emissions by 2050 Scenario
World Resources Institute, Top Findings from the IPCC Climate Change Report 2023
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