illuminem summarizes for you the essential news of the day. Read the full piece on The Telegraph or enjoy below:

🗞️ Driving the news: The transition to net zero will increase global inflation by 1.6 percentage points annually over the next decade, according to French asset manager Carmignac
• High investment levels and rising oil costs will challenge central banks' ability to control inflation

🔭 The context: Achieving net-zero targets requires massive investments equivalent to 2% of global GDP, leading to higher consumer prices
• The decline in fossil fuel industries and increased costs of green technologies are major inflation drivers

🌍 Why it matters for the planet: Inaction on climate change could lead to even higher inflation due to climate instability, which would have prolonged negative effects
• The transition is crucial to mitigate the severe and long-lasting economic impacts of climate change

⏭️ What's next: Policymakers face tough choices between controlling inflation and accelerating the energy transition
• This period will test central bank independence and may lead to conflicts between government objectives and economic policies

💬 One quote: “The objectives of the transition will be put to the test when we have more shocks coming from the political side and markets because it’s very costly and also regressive,” said Raphaël Gallardo, Carmignac’s chief economist

📈 One stat: Carmignac estimates that the physical impacts of climate change could raise inflation by 0.8 to 1.3 percentage points annually over the next decade

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