The fight against climate change, which is led by governments around the world, can lead to higher prices for goods, writes Bloomberg. Taking care of the environment requires the abandonment of carbon fuels, and production is now more expensive, due to the need to use new technologies.
The global economy is already facing the threat of inflation amid a record rise in the price of raw materials, and the potential jump in prices due to the green revolution is another cause for concern. So, the global energy sector will have to invest five trillion dollars a year to completely eliminate emissions into the atmosphere by the end of the decade, according to data from the International Energy Agency (IEA). This is on average twice the volume of investments of the last five years.
вЂњIf I were asked to bet on what factor will drive up prices in the coming years, I would say that it will be an emphasis on environmental issues and in particular the desire to eliminate emissions into the atmosphere,вЂќ said Roger Bootle, founder of the consulting company Capital Economics.
In addition, significant spending on new technologies, which manufacturers can pass on to consumers, can also increase inflation. The transition to more environmentally friendly heating systems, which are also more expensive, also contributes.
In addition, the pressure of eco-activists leads to a restriction of oil production, which as a result causes an increase in prices. At the same time, the world is still far from abandoning fossil fuels.
Several major oil companies have already faced the need to reduce production: on June 9, Shell agreed to reduce emissions by a court decision, and Exxon Mobil and Chevron were forced to give in to activists in the ranks of their own shareholders.
At the same time, climate change itself and global warming are also becoming a problem for the world economy. For example, the drought in Taiwan threatens to disrupt the supply of semiconductors necessary for the production of various types of equipment. Problems may also arise with the supply of products, in particular coffee and chocolate.