Sustainable Energy Goals Require Public Investment in Emerging Technologies, BCG Chair Says

livemint.com:

In December, more than 190 governments at the United Nations climate conference approved an agreement calling for a transition away from fossil fuels to combat global warming. The COP28 conference was widely viewed as a turning point in the fight against global warming. The effort will require a massive amount of technology, but much of it is too expensive and won’t come down in price without public subsidies and investment, said Boston Consulting Group Global Chair Rich Lesser.

Lesser, a former BCG CEO, led the consulting company’s delegation to COP28, where BCG served as the principal strategy and action partner, working with public-, private-, and social-sector leaders on priority issues to accelerate climate action and advance adaptation and resilience. Lesser also is chief adviser to the World Economic Forum’s Alliance of CEO Climate Leaders. He spoke with The Wall Street Journal about the role of technology in the shift away from fossil fuels.

Here are edited highlights of the conversation: WSJ: What role will technology play in implementing the COP28 agreement? Rich Lesser: I think the sense of urgency in the world continues to grow…Right now, if you look at the full range of technologies we need, about 55% of those technologies—the most obvious is solar, wind, a lot of the battery technologies—they are now cost-competitive. But if you assume interest rates are going to moderate, and that was certainly the signal out of the Fed, they don’t have to come all the way back down to zero for these technologies to be well in the money and affordable. So that’s good.