Schroders: “Decarbonizing the economy will generate more inflation until 2030”

Delaying the ecological transition will generate even more inflation, emphasize from the manager

The ecological transition is necessary, but it will come at a price. According to Schroders, it is “likely” that the decarbonization of economies will generate a very inflationary trend “at least” over the next decade.

“This is because the current cost of emissions is too low, as the global average carbon price is around $6 per tonne of carbon dioxide (t CO₂), well below the $200/t CO₂ level needed by 2030 to incentivise the shift to net zero and meet the Paris 1.5 degrees Celsius target,” explains Irene Lauro, environmental economist at Schroders.

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