China plays a big role in the global push to shift from fossil fuels to cleaner energy. It's the world's largest carbon emitter but also a global leader in solar, wind, and battery technologies. This combination makes China a critical player in the energy transition. China may not be doing enough to reduce its own greenhouse gas emissions, but it is leading the way in producing low-cost, low-carbon solutions.

Why Materials Matter

One of the biggest challenges in switching to alternative energy is the need for specific materials like lithium, cobalt, and rare earth metals. These are essential for making things like solar panels, wind turbines, and batteries. In her report, "Minerals and Materials Challenges for Our Energy Future(s): Dateline 2024," Michelle Michot Foss emphasizes the critical role of materials in energy transitions:

"Energy transitions require materials transitions; sustainability is multifaceted; and innovation and growth will shape the future of energy and economies."

China controls much of the supply and processing of these materials. For example, it produces most of the world’s rare earth metals and has the largest capacity for making batteries. This gives China a big advantage but also creates risks. Michot Foss points out:

"China’s command over material supply chains presents both opportunities and risks. On one hand, it enables rapid scaling of technologies like wind, solar, and batteries. On the other hand, it exposes the global market to potential vulnerabilities, as geopolitical tensions and trade barriers could disrupt these critical flows."

China’s strategy for dominating alternative energy materials is also closely tied to its national security interests. By securing control over these critical supply chains, China not only hopes to guarantee its own energy independence but also gains significant geopolitical leverage.

“Is China’s leadership strategic or accidental? China’s dominance is a consequence of enormous excess materials supply chain and manufacturing capacity. A flood of exports are undermining materials and “green tech” businesses everywhere. It heightens vulnerabilities and geopolitical tensions. How do we in the US find our own comparative advantage?” Michot Foss notes that advanced materials should be a priority for US responses, especially as attention shifts to nuclear energy possibilities and as carbon capture and hydrogen initiatives play out.

Balancing Energy Growth and Emissions

GabrielCollins, in his report "Reality Is Setting In: Asian Countries to Lead Transitions in 2024 and 2025," offers another perspective. He focuses on how developing nations, especially in Asia, are shaping the energy transition:

"The developing world, including many countries in Asia, increasingly demand that developed nations’ policy advocacy stop treating the economic and environmental needs of the developing world as an afterthought."

Collins highlights China’s dual strategy: investing heavily in renewables while still using coal to meet its growing energy demand. He explains:

"China, which now has installed a terawatt combined of wind and solar capacity while still ramping up coal output and moving to dominate EV and renewables supply chains and manufacturing."

This strategy appeals to other developing nations, which face similar challenges of balancing energy needs with environmental goals while fostering economic growth and expanding industries.

The Numbers: Progress and Challenges

McKinsey’s Global Energy Perspective 2024 provides some useful data. On the bright side, China is installing renewable energy faster than any other country. In 2023, it added over 100 gigawatts of solar capacity, a world record. Wind energy is growing quickly too, and China leads in producing electric vehicle batteries.

But McKinsey also notes the challenges. Coal still generates more than half of China’s electricity. While renewable energy is growing fast, it’s not replacing coal yet—it’s just adding to China’s total energy capacity.

McKinsey sums it up: China is leading in renewable energy deployment, but its reliance on coal highlights the slow pace of deep decarbonization. The country is transitioning, but not fast enough to meet global climate targets.

Is China Leading or Lagging?

So, is China leading the energy transition? The answer is: it depends on how you define “leading.”

If leadership means building more solar and wind farms, dominating the materials supply chain, and being the leading supplier of low-carbon solutions, then yes, China is ahead of everyone else. But if leadership means cutting their own emissions quickly and shifting away from fossil fuels, China still has work to do.

China’s approach is practical. It’s making progress where it can—like scaling up renewables—but it’s also sticking with coal to ensure its economy and energy needs stay stable.

Final Thoughts

China is both a leader and a work in progress when it comes to the energy transition. Its achievements in renewable energy are impressive, but its reliance on coal and the challenges of balancing growth with sustainability show there’s still a long road ahead.

China’s story reminds us that the energy transition isn’t a straight path. It’s a journey full of trade-offs and complexities, and China’s experience reflects the challenges the whole world faces. At the same time, its focus on national security through energy independence and industrial strategy to build low-carbon export businesses signals a strategic move that is reshaping global power dynamics, leaving the United States and other nations to reevaluate their energy policies.

———

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 on December 5, 2024.


It's a different world for startups on the other side of the pandemic — especially for business development. One Houston innovator shares her lessons learned. Photo via Getty Images

Energy tech professional shares 3 business development tips for 2024

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The post-pandemic world of business development looks a lot different than it did in 2019. I started my first “sales” role in 2014 at a large, international company, and my days were filled with in-person meetings, often visiting four or five different prospects. The pandemic shifted this approach, as we all moved to web-based platforms and face-to-face meetings dwindled.

Fast forward to 2023, when I joined the Houston team at Square Robot, a startup that was trying to disrupt an industry. I had to learn how to navigate a post-pandemic sales world — where hybrid work, reliance on emails, and video based web calls are now the norm — coupled with the challenges of working for a relatively new company.

I think many working for startups will agree that the first barrier encountered in trying to build and grow your business is addressing the “who” in the equation. You are battling your prospect’s already busy schedule to earn a few minutes of their time, which is an uphill battle when the company is relatively unknown. Not to mention, startups often run into internal delays just from encountering a concern or problem that hasn't been sorted out before. A successful startup is made up of people who, when encountering that sort of a situation, instinctively and proactively figure out the way to solve it instead of sitting back and saying, "We don't have a tool I can use, so I can't get this accomplished.”

While there’s no perfect formula for how to drive sales at a startup, I can share my personal experience and success from the past 15 months at Square Robot. The company put their faith in me to develop business in an untapped market segment: the power industry. In one year, I grew this market by over 300 percent, despite the majority of prospects having never heard of Square Robot. There were a few key steps to my success, which included adjusting to the shift in work operations since Covid-19.

The power of developing a brand

My first focus was on developing my personal brand as an ambassador for Square Robot. Not only did I dive into learning all aspects of our robotic services, but I then did the same in the power industry. I heavily relied on LinkedIn to build my brand as a knowledge center, often creating short videos, posts and even articles about the benefits of Square Robot’s service for the power industry.

I found that in a business world that’s inundated with endless emails and cold calls, social media was an easy way to get in front of prospects without the pressure of calling as they’re stepping into a meeting or too busy to speak. The recognition of name and company from LinkedIn translated across the traditional platforms. I connected and messaged on LinkedIn, followed by email and phone outreach. Overall, about 75 percent of my closed opportunities in 2023 began with outreach on Linkedin.

Tapping into relevant organizations

As I continued to learn more about the power generation industry, I looked for associated research and non-profit groups. From there, I found the Electric Power Research Institute, and subsequently, Square Robot was accepted into a program to showcase new technology directly to the end user.

I also researched industry specific conferences and publications for either speaking submissions or written pieces, which are great avenues to grow the brand of a startup company while paying close attention to budgeting.

Making time for in-person meetings

While finding ways to raise the profile of Square Robot was important, I also wanted to make sure I still had the face-to-face connection that makes a lasting impact. True success in this role takes business development into relationship development, and I made it a priority to visit new clients when Square Robot was onsite providing service.

Taking the time to meet in person with the people and teams I’ve spoken with countless times — sometimes across months — helped to build trust and uncover additional opportunities. People are much more likely to answer emails or calls when they can put a face to a name. Many times I used this visit to extend my reach into a company, asking for introductions to other locations or areas.

Even though 2023 was an achievement for myself and Square Robot, it comes with the expectation of continued growth. In the startup world of business development, this means constantly engaging with potential audiences in new and different ways, not being deterred when things take time or you fail, and having creativity and tenacity to drive sales.

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Stephanie Nolan is director of sales at Square Robot, which is headquartered in Massachusetts but has a growing presence in Houston.

This article originally ran on InnovationMap.
Scott Nyquist on what the path to net-zero will look like. Graphic via mckinsey.com

Column: Houston expert on what the path to net-zero will look like

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The $275 trillion question: What does the road to net-zero look like?

That’s a good question, and McKinsey took a serious stab at providing an answer in a 2022 report, it considers the net-zero scenario described by the Network for Greening the Financial System (NGFS), a consortium of 105 central banks and financial institutions. McKinsey then describes the costs, benefits, and social and economic changes that would likely be required for the world to start, stay on, and finish the pathway described by the NGFS.

Here is what the report isn’t, and what it doesn’t do. It isn’t a roadmap to net zero, and it does not make predictions. Rather, it offers estimates related to one specific scenario. It does not say who should pay. It does not address adaptation. It doesn’t even assume that restricting global temperature rises to 1.5 degrees Celsius by 2050 is achievable. It doesn’t assert that this is the best or only way to of. Indeed, it notes that “it is likely that real outcomes will diverge from these estimates.”

What the report does do is more interesting: with rigor and thoughtfulness, it thinks through what a genuine, global effort to get to net zero would take. Here are a few insights from the report I found particularly noteworthy.

It won’t come cheap. Capital spending by 2050 under the NGFS scenario would add up to $275 trillion, or $9.2 trillion per year on average. That is about $3.5 trillion a year more than is being spent today, or the equivalent of about half of global corporate profits in 2020. In addition, about $1 trillion of current spending would need to shift from high- to low-emissions assets. In short, it’s a lot of money. Of course, some of these costs are also investments that will deliver returns, and indeed the share that do so will probably rise over the decades. Upfront spending now could also reduce operating costs down the line, through greater efficiency and lower maintenance costs. And it’s important to keep in mind the considerable benefit of a healthier planet and a stable climate, with cleaner air and richer land. But the authors do not shy away from the larger point: “Reaching net-zero emissions will thus require a transformation of the global economy.”

Some countries are going to be hit harder than others. It’s hardly surprising to read that countries like Saudi Arabia, Russia, and Venezuela, which rely heavily on oil and gas resources, are going to have a more difficult time adjusting. The same is true for many developing economies. To some extent their residents can leapfrog to cleaner, greener technologies, just as they skipped the landline in favor of cellphones. But other factors weigh in. For example, developing countries are more likely to have high-emissions manufacturing as a major share of the economy; services are generally lower emission. In addition, poorer countries still have to build much of their infrastructure, which is costly. All this adds up. The report estimates that India and sub-Saharan Africa would need to spend almost 11 percent of its GDP on physical assets related to energy and land to get to net zero; in other Asian countries and Latin America, it is more than 9 percent. For Europe and the United States, by contrast, the figure is about 6 percent.

Now is better than later. An orderly, gradual transition would likely be both gentler and cheaper than a hasty, disorderly one. The report sees spending as “frontloaded,” meaning that there is more of it in the next decade to 15 years, and then it declines. That is because of the need for substantial capital investment. But why does this matter? There is timing, for one thing. If low emissions sources do not increase as fast (or preferably faster) than high-emissions ones are retired, there will be shortages or price rises. Both would be unpleasant, and could also cut into public support for change. And then there is the matter of money. If a coal plant is built today—as many are—and then has to be shut down, abruptly and well before its useful life over, a lot of money that was invested in it will never be recouped. The report estimates that as much as $2.1 trillion assets in the power sector alone could be stranded by 2050. Many of these assets are capitalized on the balance sheets of listed companies; shutting them down prematurely could bring bankruptcies and credit defaults, and that could affect the global financial system.

The world would look very different. Under the NGFS scenario, oil and gas production volumes in 2050 would be 55 percent and 70 percent lower, respectively, and coal would just about vanish. The market share for battery or fuel cell-electric vehicles would be close to 100 percent. Many existing jobs would disappear, and because these assets tend to be geographically concentrated, the effects on local communities would be harsh. For example, more than 10 percent of jobs in 44 US counties are in the coal, oil and gas, fossil fuel power, and automotive sectors. On the whole, McKinsey estimates that the transition could mean the loss of 187 million jobs—but the creation of 202 million new ones. Reaching net zero would also make demands on individuals, such as switching to electric vehicles, making their homes more energy efficient, and eating less meat like beef and lamb (cows and sheep are ruminants, emitting methane, a greenhouse gas).

There’s a lot else worth thinking about in the report, which goes into some detail about forestry and agriculture, for example, as well as the role of climate finance and what can be done to fill technology gaps. And its closing sentence is worth pondering: “The key issue is whether the world can muster the requisite boldness and resolve to broaden its response during the next decade or so, which will in all likelihood decide the nature of the transition.”

So, is something like this going to happen? I don’t know. There is certainly momentum. As of January 27, 2022, 136 countries accounting for almost 90 percent of both emissions and GDP, have signed up to the idea. But these pledges are not cast in stone, or indeed in legislation, in many places, and as a rule policy is running far short of the promise. “Moving to action,” the report notes dryly, “has not proven easy or straightforward.”

And while some things can be done from the top down, others cannot—such as the considerable shift in human diets away from high-emissions (and delicious) beef and lamb and more toward poultry and legumes. Moreover, inertia and vested interests are powerful forces. “Government and business would need to act together with singular unity, resolve, and ingenuity, and extend their planning and investment horizons even as they take immediate actions to manage risks and capture opportunities,” the report concludes. That’s a big ask.

So, like McKinsey, I am not going to make predictions. But for an analysis of what it would take, this is a valuable effort.

———

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 on January 28, 2022.

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6 Houston energy transition events to attend in June 2025

Mark Your Calendar

Editor's note: June has arrived, and with it more must-attend events in the energy transition sector. Mark your calendar today for these conferences, symposiums, summits, expos, and more.

June 4 - Energy Capital Conference

Join 300-plus corporate leaders, financial executives, and institutional investors across the energy sector. Capital partners and energy experts will share market and sector trends, insights, and look ahead to what to expect over the next decade. This conference is now in its third decade.

This event takes place June 4 at the Post Oak Hotel. Click here to register.

June 4-5 — 2025 AWS Energy Symposium

The fourth annual AWS Energy Symposium is the premier AWS event for the energy industry. Hear from leading energy and utility customers, partners, and startups about how they're using AWS to scale innovation and transform their organizations. The event is invitation only and is geared toward senior leaders and director-level executives from across the energy value chain. Click here to submit a registration request.

June 11-12 — Energy Projects Conference & Expo

The Energy Projects Conference & Expo (EPC Show) is the largest event in North America for professionals working at the heart of major energy projects. The show will bring together five leading conferences under one roof for the first time, uniting 3,000-plus engineering, construction, commissioning, supply chain, operations, and maintenance professionals. Conference subjects span LNG exporting, hydrogen and ammonia, midstream, petrochem and refining, and sustainable aviation fuels.

This event begins June 11 at the George R Brown Convention Center. Click here to register.

June 12 - Transition on Tap

Head to Greentown Labs for this casual networking event, where some of the incubator's newest members will be introduced. Hear lightning pitches from these startups that are working on climate solutions across industries. Following the pitches, guests will network with fellow entrepreneurs, investors, leaders, and other climate champions.

This event takes place June 12 at Greentown Labs. Click here to register.

June 16-18 - Energy Drone & Robotics Summit

This three-day summit, the largest of its kind, will connect 1,500-plus leaders in the global energy/industrial robotics, drone and data sectors. Attendees will glean the latest ideas, use cases, best practices, tech, and trends from a wide variety of robotics and drone industry experts.

This event begins June 16 at Woodlands Waterway Marriott. Click here to register.

June 25-26 — Carbon Capture Technology Expo

Tackling climate change is one of the biggest global challenges that requires immediate action, and many industrial sectors are now looking to new technology to help meet net-zero emission targets. The Carbon Capture Technology Expo is North America's leading event for carbon capture, utilization, and storage. The expo offers opportunities to network with industry frontrunners and best-in-class solution providers.

This event begins June 25 at NRG Center. Click here to register. It is co-located with the Hydrogen Technology Conference & Expo North America. Expo passes are free.


Greentown Labs combines forces with MassChallenge to support more climate startups

strategic partnership

Climatetech incubator Greentown Labs has formed a strategic partnership with global zero-equity accelerator MassChallenge.

The two organizations have headquarters in the Boston area, while Greentown Labs is also co-located in Houston. MassChallenge has a hub in Dallas, as well as others in Israel, Switzerland and the United Kingdom.

The new partnership aims to strengthen the ecosystem for early-stage climatetech startups by providing more mentorship, support and a broader commercialization network for members, according to a news release.

Greentown Labs will share its expertise with the 23 startups in MassChallenge's first climate-specific accelerator, known as the MassChallenge Early Stage Climate program. Additionally, Greentown Labs members will benefit from MassChallenge's network of expert mentors, judges, entrepreneurs, partners, investors, philanthropists and others.

“There are so many synergies and shared values between MassChallenge and Greentown that launching a collaboration like this feels like a natural next step for our organizations as we strive to support as many early-stage climate founders as possible,” Georgina Campbell Flatter, Greentown Labs CEO, said in the news release. “We want to reduce the friction and barriers to market for these climate entrepreneurs and ultimately increase their opportunity for success—ecosystem collaboration is an essential part of solving these challenges together.”

Combined, Greentown and MassChallenge report that they have supported more than 4,500 founders and more than 1,000 climate startups. MassChallenge has awarded more than $18 million in equity-free grants to startups, which have gone on to raise over $15 billion, since it was founded in 2009. Greentown Labs has helped more than 575 startups raise more than $8.2 billion in funding since it launched in 2011.

Greentown recently added five startups to its Houston community and 14 other climatetech ventures to its Boston incubator. It also announced its third ACCEL cohort, which works to advance BIPOC-led startups in the climatetech space, earlier this year. Read more here.