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 developer launches AI-powered water platform to boost efficiency

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Houston real estate company McCord Development has launched an artificial-Intelligence-run water management platform, MizuWatch.

MizuWatch aims to help operators, districts, and municipalities detect leaks faster, reduce water loss and improve efficiency, according to the company. MizuWatch pulls data from supply sources, smart meters, historical usage and maintenance records, and combines them into a single platform. The AI system also uses visual mapping and digital twin technology to deliver near-real-time system insights.

“MizuWatch brings the right data together daily, so teams can see what’s happening now, intervene earlier and focus their resources where they have the greatest impact,” Jerzy Wielgus, chief product officer for MizuWatch, said in a news release.

MizuWatch was built to “scale across geographies and system sizes to help assist with water scarcity, aging infrastructure, and operational complexity,” according to the company. It was developed at Houston’s Generation Park, McCord’s 4,300-acre master planned commercial district. McCord was able to pilot the platform onsite to help manage its complex, real-world water systems at scale.

“Resilient infrastructure is a key factor for the companies choosing Generation Park,” Ryan McCord, CEO of McCord Development and Founder & CEO of MizuWatch, added in the release. “We made the decision to deploy smart meters, but no one knew how to use the data they generate. This is an opportunity across all infrastructure where sensors are deployed. What started as an internal solution has become a platform we believe can help stakeholders everywhere be more efficient in their operations, investment, and compliance.”

Last fall, Eli Lilly and Co. selected Generation Park for its $6.5 billion manufacturing plant. More than 300 locations in the U.S. competed for the factory. Bristol Myers Squibb Co., another pharmaceutical giant, also announced it is considering Generation Park for a new manufacturing hub earlier this month.

Oil giant BP ousts new chairman over serious conduct concerns

Sudden Exit

BP has ousted its chairman over what it called serious concerns related to “important governance standards, oversight and conduct.”

The departure was abrupt and unexpected, with Albert Manifold having been appointed to the position late last year.

“Albert has helped bring a welcome focus and pace to BP’s transformation," Amanda Blanc, senior independent director, said in a statement Tuesday, May 26. "However, the board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.”

BP's board named Ian Tyler as interim chair, effective immediately.

BP, based in London and with North American headquarters in Houston, is a “supermajor,” one of the five largest oil production and exploration companies in the world when measured by revenue and profit.

Manifold, who had been the top executive at Dublin-based global building materials company CRH for 10 years, became the chair at BP in October. BP was looking for someone to revamp the oil giant and went with an industry outsider in Manifold, who had made major strategic changes at CRH.

After a new focus on renewable energy at BP in 2020, by 2025 the company was seeking a return to its roots. BP's hard reset was criticized by environmentalists, as well as some shareholders.

CEO Murray Auchincloss said last year that optimism over opportunities in renewable energy was misplaced, with the company moving “too far and too fast.”

Changes in leadership at BP in recent years has been tumultuous.

CEO Bernard Looney resigned in late 2023 after BP determined that he had misled the company over his past relationships with colleagues.

Auchincloss stepped down in December, and the company named Meg O'Neill as his successor.

Manifold’s was challenged almost immediately when shareholders defeated company resolutions this spring that would have allowed BP to reduce climate reporting requirements and move its annual meetings fully online. Some 18% of shareholders voted against Manifold’s election as chairman, a high level of opposition for an appointment that is generally rubber stamped by investors.

Legal & General, one of Britain’s largest insurers and investment companies, said at the time that Manifold was responsible for resolutions that would have had “a negative impact on shareholders’ insight into how the company is addressing financially material long-term risks, and seizing long-term value creation opportunities, associated with the energy transition,” the Times of London reported on April 23.

Glass Lewis, an influential shareholder advisor, urged investors to vote against Manifold’s election. It held that BP took “unprecedented action” by refusing to consider a resolution from a group of climate activists and pension funds hoping to force the board to create an alternative strategy should demand for fossil fuels decline, the Times reported.

Like other big oil companies, BP has struggled with falling demand in recent years.

BP’s 2025 earnings fell 16% from a year earlier to $7.49 billion as the price of Brent crude, a benchmark for international oil prices, dropped 16.9%. The company’s preferred measure of earnings is underlying replacement cost profit, which adjusts for one-time items and fluctuations in the market value of inventories. Net income plunged 86% to $55 million.

Last year there were media reports that British oil giant Shell was in talks to buy rival BP. Shell denied the reports at the time.

The search for a new chair is underway, BP said Tuesday. Shares of BP Plc slid nearly 5% in midday trading on the NYSE.

Houston startup nets new funding to accelerate methane leak detection

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Houston climatech startup Aquanta Vision has secured pre-seed funding to accelerate the commercialization of its methane leak detection software.

EIC Rose Rock participated in the round, joining investors like Marathon Petroleum Corporation, Chevron Technology Ventures, Ecosphere Ventures, and Odyssey Energy Advisors. The investment follows successful field trials for Aquanta Vision’s optical gas imaging (OGI) detection software, according to the company.

“This investment highlights our shared excitement as our patented novel technology improves detection levels for OGI camera operators,” Babur Ozden, Aquanta Vision’s CEO and founder, said in a news release. “The funding from EIC Rose Rock enables us to strategically accelerate this impact.”

Aquanta Vision’s OGI technology features an automated detection layer through an add-on app that improves methane detectability without requiring new hardware. It installs in minutes, runs locally and provides real-time, in-flight plume visualization for inspections with drone-mounted and handheld cameras.

“We are excited to partner with Aquanta Vision to scale and deploy this world-class technology that enables the energy industry to continue to deliver the secure, reliable and affordable energy that drives the American economy,” David Clouse, managing director of the EIC Rose Rock fund, added in the news release.

The company has partnered with Teledyne Flir and Sierra Olympia, makers of one of the world’s largest deployed fleet of handheld and drone-mounted optical gas imaging cameras used in industrial inspections. AquantaVision is now working with Teledyne Flir’s product team, as well as Sierra Olympia and its OEM partners.

Aquanta Vision has estimated that methane leaks cost the U.S. energy industry billions of dollars each year, with 60 percent of leaks going undetected, and methane leaks accounting for around 10 percent of natural gas's contribution to climate change, according to MIT’s climate portal.