Would you spend $520 to save $1,200? That’s the choice McKinsey & Co is offering to the U.S. about energy efficiency. In their new report on energy efficiency, released last week, McKinsey shows how the U.S. can reduce its non-transportation energy use by 23%, eliminate the emissions of 1.1 billion tons of greenhouse gases annually, and save $1,200 billion, for a cost of about $520 billion.
They do recognize that achieving these results requires some new thinking on our parts:
Such energy savings will be possible, however, only if the United States can overcome significant sets of barriers. These barriers are widespread and persistent, and will require an integrated set of solutions to overcome them – including information and education, incentives and financing, codes and standards, and deployment resources well beyond current levels.
The report not only provides the conclusions, but also the steps we can take to address barriers and achieve the desired results. They suggest an overarching strategy, including the key point that “energy efficiency is an important energy resource to help meet future energy needs…” and the need for an integrated portfolio of different approaches to unlock the full potential of energy efficiency.