Renewable Energy Could Be a Casualty in the War on Inflation. Here’s Why.

By John Mercury December 7, 2023

A global campaign to tame inflation is hurting the fight against climate change by steering developing countries away from renewable energy, raising anxieties among the officials gathered at the United Nations climate summit in Dubai.

Those officials say they support efforts by central bankers to bring down rising prices by raising interest rates.

But in interviews in recent days, they worried about the unintended pain those efforts are inflicting on poor countries that are most vulnerable to climate change and face critical choices about what sort of energy systems they will invest in.

Wealthy nations and international agencies must find more creative ways to steer money to countries in Africa, Asia and beyond that are struggling with high interest rates, officials say. Otherwise, the world could miss an opportunity to hold down future greenhouse gas emissions as millions of people in those countries rise out of poverty and consume more power.


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