Efficiency’s Pot of Gold

The McKinsey & Co. study released this week is stunning–in a good way–for a couple of reasons, only one of which has to do with the content of the report.

From a content perspective, it’s unquestionably important to quantify on a national level the savings potential of cost-effective energy efficiency. And savings of $1.2 trillion after a decade with an upfront investment of $550 billion is nothing to sneeze at. Nor is the notion of cutting carbon emissions equivalent to the entire U.S. fleet of cars and trucks now on the road. Truly, the content of the report is cause for hope, even acknowledging as the report does the real and persistent barriers impeding the initial investment.

The other stunning thing about the report is not so much about what it says, but who is saying it and who is likely to listen and take action because of it. This is not NRDC, ACEEE or any of a host of very competent organizations that everybody would expect to conclude that energy efficiency is a key to prosperity and environmental sustainability.

McKinsey is consultant to the stars of global capitalism, business advisor to the biggest of the big. They have served 90 or the 100 biggest companies in the world. They work in 35 countries and their influence touches literally billions of customers of their clients. So, when McKinsey issues a report like this, people instantly pay attention. People at the New York Times, the Wall Street Journal and other media outlets favored by the investing classes.

Now, energy efficiency isn’t new to the McKinsey people. In 2007, the McKinsey Global Institute began publishing studies on the potential for U.S. and global “energy productivity” to save money and the planet.

Still, it’s encouraging that they have kept on beating the drum. Having such powerful voices in the corner of energy efficiency improves the chances that the cheapest and cleanest energy resource will end up the champ.

Tags: energy efficiency