such developments, companies would be wise to anticipate change in these areas and be prepared to jump on opportunities—before the competitive landscape gets crowded. For example, last year’s Inflation Reduction Act in the United States, which allocates about $370 billion for climate and energy spending, and multiple policy packages under the umbrella of the European Green Deal, could accelerate pockets of the net-zero economy and facilitate access to funding.
The net-zero transition presents challenges for incumbents, particularly those in hard-to-abate sectors. At the same time, established companies have a unique opportunity to decarbonize and create value. While there is no one universal approach, making timely moves across three key action areas could help companies create a competitive advantage in the years to come.
Peter Crispeels is a partner in McKinsey’s Lyon office; Dieuwert Inia is a senior partner in the Amsterdam office; Henry Legge is an associate partner in the Stockholm office, where Tomas Nauclér is a senior partner; and Philipp Radtke is a senior partner in the Munich office.
The authors wish to thank Markus Björk, Stefan Helmcke, Sebastian Levi, Lena Lindvall, and Thomas Schmidt for their contributions to this article.
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Accelerating the journey to net zero
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