This year marks the tenth anniversary of McKinsey’s Global Energy Perspective, offering a chance to reflect on the lessons learned over the past decade and to look ahead to the next one.
Two overarching themes emerge from this year’s outlook. First, cost competitiveness and an economically pragmatic energy transition remain paramount. Energy affordability, reliability (including energy security at the national or regional level), and emission reduction continue to form a trio of priorities that drive energy decision-making. However, without affordability—along with bankability—widespread adoption of new low-carbon technologies will not happen.
Second, there is no silver bullet for decarbonization. Countries and regions will follow distinct trajectories based on local economic conditions, resource endowment, and the realities facing particular industries.
Yet every year also brings unforeseen developments, whether breakthroughs in energy technology that allow accelerated scale-up of solar and wind power or innovations like AI that drive rapid growth in power demand.
The following seven points represent key takeaways from this year’s perspective.
Ten years after the inaugural Global Energy Perspective, our view of the energy transition has matured. While the urgency remains, the pathways to meet the Paris Agreement targets are now more complex and must be grounded in economic and geopolitical realities. Global greenhouse gas emissions are still rising, and the journey toward decarbonization remains long. But with resilience and agility, energy sector leaders can prepare for and navigate the challenges.
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