Carmignac Sees Energy Transition Fueling Inflation This Decade.

According to researchers at Carmignac, the transition to a low-carbon economy will contribute to inflation over the next decade. They predict that the energy transition will add 1.6 percentage points to developed-market inflation each year, as the dirtiest fuels are phased out and new technologies are invested in. However, this inflationary impact is seen as preferable to the potential consequences of unmitigated climate change. Carmignac is one of several financial institutions examining the effects of climate change on global economic growth, inflation, and asset prices. [Extracted from the article]