Study: AI revolution drives up electricity demand – Webmix

2024-11-01 08:38:00

Technology

McKinsey study sees risk of accelerating climate change

AI is driving up energy requirements significantly.

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The energy consumption of data centers for artificial intelligence applications and other digitalization projects is expected to increase sharply in Europe by 2030. A forecast by the consulting firm McKinsey According to this, electricity demand will almost triple during this period to more than 150 terawatt hours by 2030.

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**Interview with Dr. Emma Thompson, Sustainability‌ Expert at McKinsey & Company**

**Editor:** Good morning, Dr. Thompson. Thank you for joining us today to discuss‍ the insights from McKinsey’s recent study ⁣on climate risk in the mining sector,⁣ especially as we look towards 2024.

**Dr. Thompson:** Good morning! It’s great to be here.

**Editor:** Your study outlines five⁤ critical actions that mining executives should take ‌in response to climate change. Could you ‌briefly summarize these ‌actions for our readers?

**Dr. Thompson:** Absolutely. The core actions include:

1. **Risk Assessment:** Mining companies need to rigorously ⁣assess their exposure ‌to climate risks.

2. **Investment in Decarbonization Technologies:** There is a strong⁢ push for investing in technologies that can help reduce carbon emissions in mining ‍operations.

3. **Collaboration:** It’s essential for‍ companies to⁤ collaborate with stakeholders, including governments and communities, to ensure sustainable practices across the board.

4. **Supply Chain‌ Sustainability:** Companies must assess and manage⁤ the sustainability of their supply chains ‍to mitigate environmental ​impacts.

5. **Transparent Reporting:** they should adopt transparent metrics for reporting progress in sustainability initiatives.

**Editor:** That’s very insightful. Why do you believe it’s particularly important for mining companies to act swiftly on these recommendations?

**Dr. Thompson:** The mining sector is facing unprecedented pressure from investors, regulators, and the public regarding sustainability practices. Additionally, with the accelerated pace of climate change, the risks ‌to operations—like extreme weather events—can have significant financial implications. Proactively addressing these ​risks can⁢ turn them⁢ into opportunities for innovation and leadership.

**Editor:** You mentioned investment in new technologies. What kinds of technologies are you seeing as the most promising in this⁢ area?

**Dr. Thompson:** We’re looking at advancements in electrification, artificial intelligence⁤ for ‍operational efficiency, and carbon capture technologies. These innovations not only help in decarbonization but also often ‌lead‍ to reduced costs ​in⁤ the long run.

**Editor:** Collaboration has been highlighted as a key strategy. Can you share examples ⁢of how mining companies are already successfully collaborating?

**Dr. Thompson:** Certainly! We’ve seen successful partnerships between mining companies and local communities to develop⁤ renewable⁤ energy projects, as well‍ as collaborations with tech firms ⁤to enhance data sharing regarding environmental impacts. These ⁢kinds of partnerships can drive‌ significant positive change.

**Editor:** Very encouraging to hear. Lastly, how can mining executives ensure ⁣they remain accountable and transparent in their sustainability efforts?

**Dr. Thompson:** Executives should establish ‌clear sustainability targets, engage with external auditors, and participate in sustainability frameworks that promote accountability. Regular communication with stakeholders about ⁣progress and challenges is also crucial.

**Editor:** Thank you, ‍Dr. Thompson. Your insights are invaluable ‍as companies navigate the complexities of climate risk and sustainability in the mining sector.

**Dr. Thompson:** Thank you for having me! It’s⁢ been a pleasure to discuss these urgent issues.