McKinsey report: Invest $50 billion, save $1.2 trillion

A recently released McKinsey report (McKinsey & Co., Washington), sponsored by USGBC, Washington, and several other organizations, indicates that investing $50 billion in the energy efficiency of buildings and other non-transportation initiatives throughout the next 10 years could reduce the nation’s energy consumption by 23% by 2020, save the U.S. economy $1.2 trillion, and reduce annual greenhouse gas emissions by 1.1 gigatons. This level of investment is also projected to generate 900,000 jobs.
   “This confirms a critical path forward that we have long championed. Harnessing the engine of green, energy-efficient buildings can cost-effectively drive tremendous improvements in our economy and environment,” said Rick Fedrizzi, president, CEO and founding chairman of USGBC. “Green building can stimulate the economy at a level one and a half times larger than the federal stimulus bill. In terms of climate change, a commitment to energy efficiency would be the equivalent of taking the entire U.S. fleet of passenger cars and light trucks—more than 200-million vehicles—off the road.”
The energy efficiency potential cited in the report is divided across three sectors of the U.S. economy:

  • industrial, 40% of the end-use energy efficiency potential
  • residential, 35%
  • commercial, 25%.

The report calls for an integrated national plan guided by five principles:

  • Recognize energy efficiency as an important energy resource that can help meet future energy needs, while the nation simultaneously develops new no- and low-carbon energy sources.
  • Formulate and launch, at both the national and regional levels, an integrated portfolio of proven, piloted, and emerging approaches.
  • Identify methods to provide the significant upfront funding.
  • Forge greater alignment among utilities, regulators, government agencies, manufacturers, and energy consumers.
  • Foster innovation in the development and deployment of next-generation, energy-efficiency technologies to ensure continuing productivity gains.

To download the report, click here.—Gary L. Parr

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