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McKinsey Hard Strategy Environmental Policy Decarbonization

Climate change

#Overall economy #Climate Change #Energy #Public Policy
ProHub Comment

This is a comprehensive climate policy case that tests candidates' ability to structure a complex multi-sector problem, generate creative solutions across industries, and perform mathematical analysis under time pressure. The case evaluates both strategic thinking (framework development and ideation) and quantitative skills (emissions reduction calculations), with an additional resiliency component testing adaptability.

Estimated Time 15 minutes
Difficulty Hard
Source PeterK
50 / 100
The government of a West European country Franland has been under international pressure recently to accelerate the decarbonization of its economy. According to scientists, to reverse the odds of the most dangerous and irreversible effects of climate change, the countries should cooperate to limit global warming to 1.5 degrees Celsius by 2030. In particular, Franland should reduce its greenhouse gas (GHG) emissions by 20% by 2030. They have hired your team to help them out. What factors would you consider in building a plan to reduce GHG emissions?

Clarifying Information

  1. Franland is a developed country with 60M people
  2. Franland enjoys multiple strong sectors - industries, agriculture, power/energy, transportation, etc.
  3. Franland’s GHG emissions were ~360 metric tons of carbon dioxide equivalent (MtCO2e) in 2021
  4. Franland’s GHG emissions are expected to keep declining, but not fast enough to meet its national mitigation targets by 2030