The consequences crucially depend on the interaction between the different channels driving the green transition and on policy action. For instance, significant investment in research and innovation is required in the short term to develop technological solutions and ensure that decarbonisation objectives can actually be met.
If the transition happens at the required pace and is supported by the right policies, upward price pressures are likely to be contained. And when comparing the present value of the benefits from lower emissions with the present value of the costs of reducing our reliance on fossil fuels and replacing them with renewable energy, there are actually considerable net benefits.