Climate change will keep inflation stubbornly high and result in low investment returns for an extended period, said Nicolai Tangen, the head of Norway’s $1.3 trillion oil fund.
Tangen told the Financial Times on April 25 that “inflation is going to be tough to get down,” alluding to a multitude of factors, such as rising labor costs and higher food prices. These, he noted, could keep inflation elevated for years.
A part of the “mosaic,” according to Tangen, is that the exorbitant investments being made in the green energy transition and the deglobalization initiative occurring today will also add to inflation pressures….