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Mobility’s Net-Zero Transition: A look at Opportunities and Risks

April 25, 2022 – The transition to net-zero emissions will need to be universal, involving all economic sectors and countries. In mobility, structural changes must accompany the technological transition. For consumers, upfront capital spending would increase, but the total cost of vehicle ownership would fall. New employment opportunities will open up, even as jobs are reallocated across activities.

As a result of these trends, companies throughout the mobility system—including OEMs, suppliers, manufacturers, and operators of EV-charging infrastructure—will face transition risks. But there will also be opportunities to introduce new products and service lines.

Consider capital spending on low-emission vehicles. In the net-zero scenario analyzed here, spending by companies and consumers on new vehicles—cars, trucks, buses, and two- and three-wheelers—would probably average $3.4 trillion a year for the next three decades. An additional $100 billion a year would go to new EV-charging networks and hydrogen distribution and fueling systems.

via McKinsey & Company

May 2, 2022connieshedron
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