The Climate-Change Fight Is Adding to the Global Inflation Scare
BlackRock’s Fink and others see price risk in green revolution
Photographer: Dmytro Skrypnykov/Getty Images
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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 underway.
As governments recognize the importance of climate action and push every corner of the economy to decarbonize, 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.