Greenflation Is Mentioned In The Presidential Candidate Debate: What Is Green Inflation And Its Link To Government Policy?

Illustration of Green Inflation aka greenflation. (ist)

The YOGYAKARTA - Greenflation became a term that was being widely discussed after being called olig Gibran Rakabuming in the vice presidential debate on Sunday (21/1) night. The Vice Presidential Candidate number 2 made a statement regarding greenflation to Mahfud MD. Not many people know what greenflation is and its context is in government policy.

The term greenflation used by Gibran Rakabuming in the vice presidential debate event is considered a trap question. How to overcome greenflation? asked Gibran to Vice Presidential Candidate number 3 Mahfud MD in the debate session. So what is greenflation and its explanation further?

Greenflation refers to the increase in the price of metal material (raw material) and the energy used to make the green transition, reported by Philonomist. The term greenflation is abbreviation of the word green' which means green and the word inflation which means inflation. So greenflation is also interpreted as green inflation.

Quoted from the Cambridge Dictionary Blog, the greenflation is defined as an "price increase due to the shift to the green economy". The price increase occurred because the company spent more funds to make energy transitions. Because the cost for the use of green energy is still considered more expensive than fossils.

Quoting a climate economist from Columbia Business School, Gernot Warner, greenflation refers to the rising prices and labor crisis that occurred along with the environmentally friendly transition.

The term greenflation has often been echoed by many countries in recent times regarding the green energy use program. The word greenflation serng is used in line with the increasing number of countries in the world that are committed to protecting the environment by transitioning to using energy that is more environmentally friendly.

The step to realize the commitment to the transition of environmentally friendly energy certainly requires raw materials and energy. In this need, the price of material is of course fluctuating. For example, a war in Ukraine that affects changes in the prices of mental materials and causes greenflation.

In addition, increasing spending on carbon-free technology also creates a strategic increase in the price of materials for infrastructure.

The vice presidential debate held by the General Election Commission (KPU) on Sunday (21/1) raised the theme about sustainable development, natural resources, the environment, energy, food, agrarianism, indigenous peoples and villages.

The three candidates for vice presidential candidates, namely Cak Imin, Gibran Rakabuming, and Mahfud MD, collided with each other about the theme of the debate. On the occasion Gibran asked, the couple from Prabowo Subianto's presidential candidate asked the vice president Mahfud MD of Ganjar Pranowo's pair.

Gibran asked Mahfud MD about how to overcome greenflation. However, this question is considered a trap question because it uses a special term. This is because in the first vice presidential debate, Gibran used the term SGIE to Cak Imin and confused the vice presidential pair from Anis Baswedan or did not know.

After Gibran asked a question about greenflation, the moderator immediately reminded Gibran not to use the special term Gibran to explain his question further and use understandable words. This moment immediately made the situation at the debate venue boisterous.

"Okay, no, wait. I didn't explain this earlier because he is a professor, greenflation is green inflation, that's simple," said Gibran Rakabuming.

Mahfud MD gave an answer by mentioning that greenflation is a circular economy.

"Green inflation is a green economy, which is a circular economy, where a process of utilizing food food economic products, for example, or whatever is produced and then utilized, recycled, so it is not allowed and interferes with ecology," replied Mahfud MD.

Mahfud MD also added that to overcome inflation, what is done is the easiest is to regulate related policies.

"Meanwhile, to overcome inflation, the easiest thing is to regulate policies, just adjust the data, the trend is like this, the policy must be like this. This is what we understand about green inflation," he explained...... Many things we do because, for example, the measure of our economic progress is always measured from five things, for example, poverty growth, inequality, and two others, but one must be added, namely emissions, "continued Mahfud MD.

That's a review of what greenflation is and its relation to government policies. Greenflation is an important issue that countries in the world continue to echo, considering the use of green energy and its impact on the environment. Also read what a green economy is.