Lagarde: Green Fuels can Help Against Price Spikes
Accelerating the transition to green energy sources can help counteract sharp energy price increases. That wrote top woman Christine Lagarde of the European Central Bank (ECB) in a blog after the opening of the UN climate summit in Egypt.
According to her, sustainable energy sources are less sensitive to strong price fluctuations than fossil fuels such as oil and gas.
According to Lagarde, the sharp rise in energy prices in Europe due to the war in Ukraine has shown how significant the dependence on fossil fuels is and how vulnerable this makes Europe. The switch to renewables, she says, reduces the risk of sharp price spikes, which in turn will lead to lower and more stable inflation. According to the ECB president, that will lead to better economic growth.
Lagarde further reported that the ECB is closely monitoring the impact of climate change on inflation. “Our primary objective is to keep prices stable. That is the compass we always sail on, now more than ever. But, to meet that core responsibility and implement effective policies, we need a complete picture of all the factors that influence inflation.”