McKinseyCompanyAn affordable,reliable,competitive path tonet zeroAuthorsMekala KrishnanHumayun TaiDaniel PacthodSven SmitTomas NauclerBlake HoughtonJesse NoffsingerDirk SimonEditorBenjamin PlotinskyNovember 2023ContentsAt a glance2There has been meaningfulmomentum toward net zeroNevertheless,the world is not ontrack to reach net zero by 20505A poorly executed transition couldcompromise affordability,reliability,and competitiveness-and slowprogress toward net zero9A well-managed transition wouldfollow seven principles14An illustration shows how followingthose principles could acceleratethe world's current trajectory36Embracing a change of mindsetcan help the world move closer toits net-zero goals41Cover image:Sam FalconerAll interior images:Getty ImagesCo pyright 2023Technical appendix43All rights reserved.46Confidential and proprietary.AnyAcknowledgmentsuse of this material without specificpermission of McKinsey &Companyis strictly prohibited.An afforda ble,reliable,competitive path to net zero