Nature solutions still most low-cost, high-impact decarbonisation approach: report

However, reforestation and new agricultural practices can be costly.

Nature-based solutions (NBS) remain the most low-cost and high-impact decarbonisation effort, according to a McKinsey report.

Others, including reforestation and new agricultural practices, have great promise but can be costly.

Over the past few years, NBS have been increasingly incorporated into policy frameworks and financial mechanisms.

Yet critics say that vague definitions can lead to NBS being co-opted by entities that may not prioritise genuine ecological benefits.

According to McKinsey, a major technological development for decarbonisation is the rise of artificial intelligence (AI) and advanced analytics.

“These technologies enable companies to achieve cost savings and accelerate their decarbonisation through digital and cloud solutions,” McKinsey said.

These include streamlining the understanding of their Scope 3 emissions, identifying operational efficiency, and reducing emissions via machine learning.

“While AI data centres require significant energy, we estimate that cloud-powered technologies can accelerate 47% of the initiatives required to achieve the global 1.5 degrees Celsius pathway by 2050,” McKinsey added.