The term "greenflation," which combines "green" meaning decarbonization and "inflation" meaning rising prices, has become widely known.  As investment in fossil fuels has been curbed, demand for natural gas, which can have lower greenhouse gas emissions than coal, has increased, causing energy prices to rise.  Addressing the system-level risk of climate change, for example, creates inflationary pressures through internalization of negative externalities.  The system-level risk of widening income inequality and declining labour income share, if left unaddressed, will combine with rising inflation to further reduce households' purchasing power and hence well-being.  If this happens, net zero momentum could be lost, and anti-ESG and anti-SDG sentiment could increase and spread globally.



Takeshi Kimura. "SDGs and Inflation". Institute of Directors. (x1722902400)August 06, 2024. https://www.iodglobal.com/... (Contributed by Gregory Autin).

Posted on 18/03/25

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