Three-Part Decarbonization Priority Stack
Prioritize efficiency, clean electricity, and transport electrification
- Difficulty
- Expert
- Time to result
- ~ongoing to results
- Steps
- 5
- Confidence
- 99%
This priority stack ranks decarbonization work by scale, feasibility, and economic readiness. First, reduce energy demand across buildings, materials, industrial processes, and consumer activity, especially where efficiency investments already save money. Second, decarbonize electricity generation so that growing reliance on electricity produces progressively lower emissions. Third, electrify transport, supported by adequate charging, grid, and storage infrastructure. The sequence is mutually reinforcing: efficiency lowers the total energy burden, cleaner generation improves the emissions profile of every connected activity, and electrification shifts transport away from direct fossil-fuel combustion. Difficult but smaller sources, such as long-distance aviation, still matter eventually, but they should not displace near-term work on larger categories where technology and economics already permit significant progress.
Origin
Extracted from Masters in Business
Core principles
- 01Prioritize large, actionable emissions sources before harder marginal problems
- 02Capture efficiency gains that already make economic sense
- 03Clean the electricity supply before shifting more activity onto the grid
- 04Electrify transport as power generation becomes less carbon intensive
- 05Use technology and policy together to accelerate adoption
How to run it
- 1
Rank Emissions Sources
Measure the contribution and tractability of major emissions categories. Prioritize sources where large reductions are technically and economically achievable.
Pro tip Compare potential reduction, cost, deployment speed, and infrastructure needs.
Watch out Do not prioritize a technology merely because it is novel or highly visible.
- 2
Drive Efficiency First
Reduce the energy footprint of buildings, materials, industrial processes, and business operations. Focus initially on improvements that already save more than they cost.
Pro tip Look for barriers such as split incentives, financing constraints, and poor information.
Watch out Do not mistake economically attractive efficiency for automatic adoption; practical barriers still need removal.
- 3
Decarbonize Electricity
Increase low-carbon generation while developing storage, transmission, distribution, and distributed-energy capabilities. A cleaner grid magnifies the benefit of later electrification.
Pro tip Plan for intermittent generation and power flowing into the grid from multiple sources.
Watch out Adding generation without adapting grid infrastructure can create new stresses.
- 4
Electrify Transport
Shift suitable cars, trucks, and transport systems toward electricity as the grid becomes cleaner. Coordinate vehicle adoption with charging and supporting infrastructure.
Pro tip Watch for discontinuities created when electrification combines with autonomous systems.
Watch out Infrastructure gaps can slow adoption even when vehicle economics improve.
- 5
Sequence Harder Sectors
Continue research on difficult sources such as aviation while concentrating current deployment on larger, more tractable categories. Revisit the ranking as technology advances.
Pro tip Fund sustained basic and applied research rather than relying on one-time investment.
Watch out Deferring a low-priority sector does not mean ignoring it permanently.
In the wild
A property portfolio first upgrades insulation, controls, lighting, and heating systems in buildings where energy savings cover financing costs. It then procures cleaner electricity and replaces suitable fossil-fuel equipment with electric alternatives.
→ The portfolio reduces both energy costs and emissions while limiting the amount of new generation it needs.
A region expands low-carbon electricity and grid capacity while installing charging infrastructure along high-use freight and commuter routes. Fleet operators then electrify vehicles as total operating costs become competitive.
→ Cleaner electricity and transport adoption reinforce each other instead of proceeding as disconnected programs.
Common mistakes
Chasing the Most Futuristic Technology
A technically fascinating problem such as transatlantic electric aviation may offer less immediate emissions reduction than proven efficiency measures.
Electrifying a Dirty, Unprepared Grid
Transport electrification needs cleaner generation and adequate grid infrastructure to deliver its full benefit.
Assuming Good Economics Remove All Barriers
Profitable efficiency projects can still stall because of financing, coordination, information, or incentive problems.
Is it for you?
Best for
It is best for policymakers, investors, and organizations deciding where to direct decarbonization capital and attention.
Not ideal for
It is not ideal as a complete implementation plan for a single company without a detailed emissions inventory and operational analysis.
From the transcript
“The top three are efficiency.”
“Second is you've got to carbonized the electricity production system.”
“And Third, electrify everything in transport.”
From the episode
Brian Deese on What’s Driving ESG Investing
Brian Deese