Greenflation is a combination of "Green"—for environmental considerations toward decarbonization—and "Inflation"—for rising prices. It refers to a rise in prices directly stemming from climate change countermeasures.

Take the steel industry, for example. The world's largest crude steel producer, China, significantly reduced production to meet environmental goals, which caused a drop in supply and a subsequent rise in prices. This phenomenon can be interpreted as a form of greenflation. The shift in production to more eco-friendly electric arc furnaces also contributes to this, as it increases the demand and price of key raw materials like scrap steel.

Furthermore, in the future, the transfer of R&D costs needed to transition blast furnaces to a hydrogen-based method could also become a factor in greenflation. However, if we view these efforts as necessary for humanity's sustainable development, the challenge becomes how we can connect rising prices to a rise in income, thereby creating a virtuous economic cycle.