The world can't keep on with what it's doing and expect to reach its goals when it comes to climate change. Radical innovations are needed at this point, writes Scott Nyquist. Photo via Getty Images

Almost 3 years ago, McKinsey published a report arguing that limiting global temperature rises to 1.5 degrees Celsius above pre-industrial levels was “technically achievable,” but that the “math is daunting.” Indeed, when the 1.5°C figure was agreed to at the 2015 Paris climate conference, the assumption was that emissions would peak before 2025, and then fall 43 percent by 2030.

Given that 2022 saw the highest emissions ever—36.8 gigatons—the math is now more daunting still: cuts would need to be greater, and faster, than envisioned in Paris. Perhaps that is why the Intergovernmental Panel on Climate Change (IPCC) noted March 20 (with “high confidence”) that it was “likely that warming will exceed 1.5°C during the 21st century.”

I agree with that gloomy assessment. Given the rate of progress so far, 1.5°C looks all but impossible. That puts me in the company of people like Bill Gates; the Economist; the Australian Academy of Science, and apparently many IPCC scientists. McKinsey has estimated that even if all countries deliver on their net zero commitments, temperatures will likely be 1.7°C higher in 2100.

In October, the UN Environment Program argued that there was “no credible pathway to 1.5°C in place” and called for “an urgent system-wide transformation” to change the trajectory. Among the changes it considers necessary: carbon taxes, land use reform, dietary changes in which individuals “consume food for environmental sustainability and carbon reduction,” investment of $4 trillion to $6 trillion a year; applying current technology to all new buildings; no new fossil fuel infrastructure. And so on.

Let’s assume that the UNEP is right. What are the chances of all this happening in the next few years? Or, indeed, any of it? President Obama’s former science adviser, Daniel Schrag, put it this way: “ Who believes that we can halve global emissions by 2030?... It’s so far from reality that it’s kind of absurd.”

Having a goal is useful, concentrating minds and organizing effort. And I think that has been the case with 1.5°C, or recent commitments to get to net zero. Targets create a sense of urgency that has led to real progress on decarbonization.

The 2020 McKinsey report set out how to get on the 1.5°C pathway, and was careful to note that this was not a description of probability or reality but “a picture of a world that could be.” Three years later, that “world that could be” looks even more remote.

Consider the United States, the world’s second-largest emitter. In 2021, 79 percent of primary energy demand (see chart) was met by fossil fuels, about the same as a decade before. Globally, the figures are similar, with renewables accounting for just 12.5 percent of consumption and low-emissions nuclear another 4 percent. Those numbers would have to basically reverse in the next decade or so to get on track. I don’t see how that can happen.

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Credit: Energy Information Administration

But even if 1.5°C is improbable in the short term, that doesn’t mean that missing the target won’t have consequences. And it certainly doesn’t mean giving up on addressing climate change. And in fact, there are some positive trends. Many companies are developing comprehensive plans for achieving net-zero emissions and are making those plans part of their long-term strategy. Moreover, while global emissions grew 0.9 percent in 2022, that was much less than GDP growth (3.2 percent). It’s worth noting, too, that much of the increase came from switching from gas to coal in response to the Russian invasion of Ukraine; that is the kind of supply shock that can be reversed. The point is that growth and emissions no longer move in lockstep; rather the opposite. That is critical because poorer countries are never going to take serious climate action if they believe it threatens their future prosperity.

Another implication is that limiting emissions means addressing the use of fossil fuels. As noted, even with the substantial rise in the use of renewables, coal, gas, and oil are still the core of the global energy system. They cannot be wished away. Perhaps it is time to think differently—that is, making fossil fuels more emissions efficient, by using carbon capture or other technologies; cutting methane emissions; and electrifying oil and gas operations. This is not popular among many climate advocates, who would prefer to see fossil fuels “stay in the ground.” That just isn’t happening. The much likelier scenario is that they are gradually displaced. McKinsey projects peak oil demand later this decade, for example, and for gas, maybe sometime in the late 2030s. Even after the peak, though, oil and gas will still be important for decades.

Second, in the longer term, it may be possible to get back onto 1.5°C if, in addition to reducing emissions, we actually remove them from the atmosphere, in the form of “negative emissions,” such as direct air capture and bioenergy with carbon capture and storage in power and heavy industry. The IPCC itself assumed negative emissions would play a major role in reaching the 1.5°C target; in fact, because of cost and deployment problems, it’s been tiny.

Finally, as I have argued before, it’s hard to see how we limit warming even to 2°C without more nuclear power, which can provide low-emissions energy 24/7, and is the largest single source of such power right now.

None of these things is particularly popular; none get the publicity of things like a cool new electric truck or an offshore wind farm (of which two are operating now in the United States, generating enough power for about 20,000 homes; another 40 are in development). And we cannot assume fast development of offshore wind. NIMBY concerns have already derailed some high-profile projects, and are also emerging in regard to land-based wind farms.

Carbon capture, negative emissions, and nuclear will have to face NIMBY, too. But they all have the potential to move the needle on emissions. Think of the potential if fast-growing India and China, for example, were to develop an assembly line of small nuclear reactors. Of course, the economics have to make sense—something that is true for all climate-change technologies.

And as the UN points out, there needs to be progress on other issues, such as food, buildings, and finance. I don’t think we can assume that such progress will happen on a massive scale in the next few years; the actual record since Paris demonstrates the opposite. That is troubling: the IPCC notes that the risks of abrupt and damaging impacts, such as flooding and crop yields, rise “with every increment of global warming.” But it is the reality.

There is one way to get us to 1.5°C, although not in the Paris timeframe: a radical acceleration of innovation. The approaches being scaled now, such as wind, solar, and batteries, are the same ideas that were being discussed 30 years ago. We are benefiting from long-term, incremental improvements, not disruptive innovation. To move the ball down the field quickly, though, we need to complete a Hail Mary pass.

It’s a long shot. But we’re entering an era of accelerated innovation, driven by advanced computing, artificial intelligence, and machine learning that could narrow the odds. For example, could carbon nanotubes displace demand for high-emissions steel? Might it be possible to store carbon deep in the ocean? Could geo-engineering bend the curve?

I believe that, on the whole, the world is serious about climate change. I am certain that the energy transition is happening. But I don’t think we are anywhere near to being on track to hit the 1.5°C target. And I don’t see how doing more of the same will get us there.

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Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally ran on LinkedIn.

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Houston startup launches groundbreaking mineral hydrogen pilot

pilot project

Houston climatech company Vema Hydrogen recently completed drilling its first two pilot wells in Quebec for its Engineered Mineral Hydrogen (EMH) pilot. The company says the project is the first EMH pilot of its kind.

Vema’s EMH technology produces low-cost, high-purity hydrogen from subsurface rock formations. It has the capacity to support e-fuel and clean mobility industries and the shipping and air transport markets. The pilot project is the first field deployment of the company’s technology.

“This pilot will provide the critical data needed to validate Engineered Mineral Hydrogen at commercial scale and demonstrate that Quebec can lead the world in this emerging clean energy category,” Pierre Levin, CEO of Vema Hydrogen, said in a news release.

Levin added that the sample collected thus far in the pilot is “exactly what we expected, and is very promising for hydrogen yields.”

Through the pilot, Vema will collect core samples and begin subsurface analysis to evaluate fluid movement and monitor hydrogen production from the wells. The data collected from the pilot will shape Vema's plans for commercialization and provide documentation for proof of concept in the field, according to the news release.

“Vema Hydrogen perfectly embodies the spirit of the grey to green movement: transforming mining liabilities into drivers of innovation and ecological transition,” Ludovic Beauregard, circular economy commissioner at the Thetford Region Economic Development Corporation, added in the release.

“This project demonstrates that it is possible to reconcile the revitalization of mining regions, clean energy and sustainable economic development for these areas.”

In addition to its pilot in Canada, Vema also recently signed a 10-year hydrogen purchase and sale agreement with San Francisco-based Verne Power to supply clean hydrogen for data centers across California. The company was selected as a Qualified Supplier by The First Public Hydrogen Authority, which will allow it to supply clean hydrogen at scale to California’s municipalities, transit agencies and businesses through the FPH2 network.

Vema aims to produce Engineered Mineral Hydrogen for less than $1 per kilogram. The company, founded in 2024, is working toward a gigawatt-scale hydrogen supply in North America.

Houston startup wins funding through new Bezos Earth Fund initiative

global winner

A Houston-based climatech startup is one of the first 16 companies in the world to receive funding through a new partnership between The Bezos Earth Fund and The Earthshot Prize.

Mati Carbon will receive $100,000 through the Bezos Earth Fund’s Acceleration Initiative. The initiative will provide $4.8 million over three years to support climate and nature solutions startups. It's backed by The Bezos Earth Fund, which was founded through a $10 billion gift from Amazon founder Jeff Bezos and aims to "transform the fight against climate change."

The Acceleration Initiative will choose 16 startups each year from The Earthshot Prize’s global pool of nominations that were not selected as finalists. The Earthshot Prize, founded by Prince William, awards £1 million to five energy startups each year over a decade.

"The Earthshot Prize selects 15 finalists each year, but our wider pool of nominations represents a global pipeline of innovators and investable solutions that benefit both people and planet. Collaborating with the Bezos Earth Fund to support additional high-potential solutions is at the heart of commitment to working with partners who share our vision," Jason Knauf, CEO of The Earthshot Prize, said in a news release. "By combining our strengths to support 48 carefully selected grantees from The Earthshot Prize’s pool of nominations, our partnership with the Bezos Earth Fund means we will continue to drive systemic change beyond our annual Prize cycle, delivering real-world impact at scale and speed.”

Mati Carbon was founded in 2022 by co-directors Shantanu Agarwal and Rwitwika Bhattacharya. It removes carbon through its Enhanced Rock Weathering (ERW) program and works with agricultural farms in Africa and India. Mati Carbon says the farmers it partners with are some of the most vulnerable to the impacts of climate change.

"As one of the first 16 organizations selected, this support enables us to expand our operations, move faster and think bigger about the impact we can create," the company shared in a LinkedIn post.

The other grantees from around the world include:

  • Air Protein Inc.
  • Climatenza Solar
  • Instituto Floresta Viva
  • Forum Konservasi Leuser
  • Fundación Rewilding Argentina
  • Hyperion Robotics
  • InPlanet
  • Lasso
  • Mandai Nature
  • MERMAID
  • Asociación Conservacionista Misión Tiburón
  • Simple Planet
  • Snowchange Cooperative
  • tHEMEat Company
  • UP Catalyst

Mati Carbon also won the $50 million grand prize in the XPRIZE Carbon Removal competition, backed by Elon Musk’s charitable organization, The Musk Foundation, last year.

Texas' oil and gas foundation could boost its geothermal future, UH says

future of geothermal

Equipped with the proper policies and investments, Texas could capitalize on its oil and gas infrastructure and expertise to lead the U.S. in development of advanced geothermal power, a new University of Houston white paper says.

Drilling, reservoir development and subsurface engineering are among the Texas oil and gas industry’s capabilities that could translate to geothermal energy, according to a news release. Furthermore, oil and gas skills, data, technology and supply chains could help make geothermal power more cost-effective.

Up to 80 percent of the investment required for a geothermal project involves capacity and skills that are common in the oil and gas industry, the white paper points out.

Building on its existing oil-and-gas foundation, Texas could help accelerate production of geothermal energy, lower geothermal energy costs and create more jobs in the energy workforce, according to the news release.

The paper also highlights geothermal progress made by Houston-based companies Fervo Energy, Quaise Energy and Sage Geosystems, as well as Canada-based Eavor Technologies Inc.

UH’s Division of Energy published the white paper, Advanced Geothermal: Opportunities and Challenges, in partnership with the C.T. Bauer College of Business’ Gutierrez Energy Management Institute.

“Energy demand, especially electricity demand, is continuing to grow, and we need to develop new low-carbon energy sources to meet those needs,” Greg Bean, executive director of the institute and author of the white paper, said of geothermal’s potential.