Mission net-zero: How the target can be achieved

Authors

P. Schaufuss, P. Schäfer, A. Mertens-von Rüden - McKinsey & Company, Inc.

Summary

The European Green Deal sets a 2030 target of a 55% reduction in emissions compared to 1990 levels. This is a cross-industry effort, but the transportation sector has lagged its peers in the race to reduce emissions since 1990. To close the gap, the transportation sector must make three commitments: electrify powertrains, shift the mobility model and decarbonize existing vehicle stock.

At present, electrification of the powertrain – hybrids and battery electric vehicles – is positioned to be the primary driver of decarbonizing passenger car transport. Hydrogen fuel cells (and potentially H2 combustion) will have a complementary role especially in commercial vehicle transport but are not expected to be commercially viable until 2027.