Potential price hit from the green revolution adds to arguments on inflation outlook
Central bankers are paying close attention on the impact of climate change and the transition to cleaner energy on inflation, output, jobs and financial stability
The inflation scare that’s become a major theme in markets is getting fresh momentum from the climate-change battle and the huge economic transformation under way.
As governments recognise the importance of climate action and push every corner of the economy to decarbonise, industries from glass to steel to autos are being left with little choice but to change how they make products and ultimately what they sell. The technical hurdles and investment involved mean it’s going to cost much more. Just two examples: making glass without poisoning the planet costs 20% more, cleaner steel is up to 30% more expensive...
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