• Faster Transitions: Customer-centric energy transitions can be 2-5 times faster than supply-led ones.
• High Impact Sectors: Residential buildings, transportation, and industry hold the greatest potential for rapid change.
• Significant Emissions Reduction: Shifting focus to customer demand could reduce global energy-related emissions by 1.5 gigatons of CO2.

Low-carbon technologies have delivered 42% more primary energy since 2015, mainly driven by supply-side initiatives. However, hydrocarbon demand increased by 31 exajoules in the same period. A new Boston Consulting Group (BCG) study, Turbocharging the Energy Transition by Boosting Customer Demand, suggests that focusing on customer demand can significantly accelerate the transition to sustainable energy.

Three Key Sectors for Rapid Impact: Customer-centric transitions could have a substantial impact on three major sectors:

1. Residential and Commercial Buildings: Including data centers, which are ready for scalable technologies.
2. Transportation: Particularly in regions with growing electric vehicle adoption.
3. Industry: Especially in specific manufacturing sectors.

Together, these sectors represent 60% of global energy demand and one-third of greenhouse gas emissions. By shifting the focus to customer demand, these sectors can leverage scalable technologies, existing government incentives, and create attractive products and services for consumers.

“Customers are hungry for green products and services,” said Ekaterina Sycheva, BCG partner and managing director. “But they need compelling offerings to turn their commitment into action.“

Benefits of Customer-Centric Approaches:

Based on an analysis of over 65 case studies, the study identifies four main benefits that make sustainable products appealing to customers:

• Superior Economics: Competitive costs and total cost of ownership.
• Enhanced Performance: High product performance that meets consumer expectations.
• Better Experience: Easy installations and comprehensive service offerings.
• Strong Branding: Clear, engaging communication that builds brand loyalty.

Related Article: Eni and Snam Launches Italy’s First Carbon Capture Storage Project, Targeting 4 Million Tonnes CO₂ by 2030

“Acting on the supply side is essential, but there’s also a significant opportunity to accelerate the energy transition by tapping into customer demand,” said Jamie Webster, partner at the BCG Center for Energy Impact.

Shifting to a customer-centric approach not only speeds up the energy transition but also ensures long-term sustainability and impact.

Download the full publication here.