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📣 Today´s McKinsey & Company report entitled “Carbon removals: How to scale a new gigaton industry” offers a deep dive into the potential of the carbon dioxide removal (#CDR) sector.
Key takeaways for me:
📈 Trillion-Dollar Market: By 2050, the CDR market could be valued up to $1.2 trillion. They also estimate a market size of up to $80 billion by 2030.
💸 Investment Needs: Achieving 2050 targets requires a whopping $6 trillion to $16 trillion investment. By 2030, we will need $0.5 to $2 trillion.
💰 Who´s Set to Profit: Suppliers will likely capture 70 to 80 percent of value in this industry, with traders likely capturing more value over time as the market matures.
🔎 Cost Reductions on the Horizon: While technology-based removals costs are high, innovations could slash these by 30-60% by 2035. In contrast, nature-based removals costs might increase due to limited land resources.
🌟 These are just a few highlights. The report has so much more to offer. Great overviews of where current technologies stand (might fight you on that biochar permanence 😉), how their price is likely to evolve, and what different stakeholders can do to increase chances of success in this rapid growth industry.
👏👏 Amazing to see McKinsey deliver yet another great report on CDR. Alongside Boston Consulting Group (BCG), we are seeing incredible analysis and knowledge being produced by these two leading consultancies.
🙌 Kudos to Peter Mannion, Emma Parry, Mark Patel, Erik Ringvold, Jonathan Scott, Alexander Mäkelä, Jonathan Scott, Lottie Plaschkes, Ben Santhouse-James and the rest of the McKinsey & Company team.
🤔💬 What is your take? Do you agree with these takeaways? What would you add?