A Look Ahead to COP29: Accelerating Global Decarbonization Efforts

The recent Climate Week in New York City gathered over 100,000 leaders across sectors—government, business, NGOs, and research—making it the largest climate event of its kind. With over 900 sessions, the week offered a glimpse into what’s to come at COP29 in Baku, Azerbaijan this November. McKinsey Sustainability, a central participant, hosted more than 20 events, emphasizing the urgency of climate action on a global scale.

“Time Is the Driver of Everything We Do”

Under the pressure of more frequent extreme weather events, economic strains, and uneven decarbonization progress, one theme emerged strongly: the need to act faster.

Mark Patel, Senior Partner and co-leader of McKinsey’s Platform for Climate Technology, stressed the importance of time, calling it “the driving force for everything we do.” Patel emphasized that while time is fixed, we can control other factors like cost, scale, and speed. He noted that focusing on just a dozen technologies could achieve 90% of the CO₂ reduction needed by 2050, underscoring the potential impact of rapid scaling.

“We must accelerate the pace of decarbonization and expand green technologies,” Patel said. By doing so, he explained, we can lower costs, increase adoption, and fuel further innovation, much as we’ve seen with electric vehicles and battery technology. Although scaling presents a huge challenge, the message left with participants was clear: it can be achieved.

Key Insights on Scaling Green Technology

At Amazon’s Climate Pledge Hub, McKinsey Sustainability hosted a unique three-day event where industry leaders, including many Climate Pledge signatories, shared experiences on scaling climate technologies. Insights emerged on investing consistently across market cycles, ensuring sustainable products outperform conventional ones, and narrowing collaboration to key focus areas. Strong storytelling on climate success stories also proved essential.

Discussions highlighted how AI and cloud technology are reshaping climate action strategies. McKinsey’s research suggests cloud-powered AI could accelerate nearly half of 1,200 decarbonization initiatives across 20 industries. Real-world applications included using digital twins to prioritize fleet transitions to electric vehicles and employing machine learning to optimize EV charging networks. However, the growing demand for AI and digital solutions is also increasing energy requirements, adding pressure on the power grid in the U.S.

The Importance of Adaptation and Resilience Investments

In addition to decarbonization, resilience against physical climate risks took center stage. Partners Alexis Trittipo and Mekala Krishnan, along with public and private sector leaders, discussed the urgent need for adaptation solutions. Panelists called for increased investment in resilience measures, with some citing an acute shortfall in resources. Ideas for boosting funding included integrated investment platforms, adding climate risk assessments into traditional finance models, and exploring a wide range of financial mechanisms, from project finance to venture capital, to fund resilience initiatives.

What’s in Focus for COP29?

As COP29 approaches, climate financing is set to dominate the discussions, with McKinsey hosting events that bring together business leaders, government representatives, and NGOs. A major goal will be establishing a new climate finance target for developing nations post-2025, helping these countries take meaningful climate action.

Effective climate financing will be essential, as the transition to net zero is projected to require annual investments of around $9.2 trillion—an increase from today’s $5.7 trillion. This funding shift would mean a reallocation from the current 75% spent on high-emission assets to 25% on low-emission technologies, reversing those proportions in future decades.

Other critical topics include the rapid scaling of green businesses and strategies for adapting to climate risks. Mekala Krishnan expressed hope that conversations started at Climate Week will continue at COP29, especially those around resilience. “We’re discussing not just decarbonization, but also building societies and economies that can withstand climate risks,” she said.