Summary: China seems to have an insatiable thirst for energy. McKinsey research predicts that China will drive as much as one-quarter of the world’s incremental demand for energy through the year 2030. To keep up with this demand, China will be spending $130 billion a year over the next two decades on new power plants, an increasing number of which will be fueled by renewable energy sources. What changes to government policy, industrial structure and consumer behavior are needed to ensure that China consumes energy in a more efficient and environmentally sustainable way? Nick Leung, Managing Partner of McKinsey’s Greater China Practice, discussed this topic recently with Michael Wang, Kevin Chan, and Jonathan Woetzel. Michael and Kevin are Partners with the Global Energy and Materials Practice in Shanghai. Jonathan is a Director in Shanghai and is Co-Chair of the Urban China Initiative, a think tank founded by McKinsey, Columbia University, and Tsinghua University.
