Ray Dalio said that stopping funding to oil producers can have serious consequences, which include contributing to the growth of fuel and food prices.

He thanked oil producers during the summit, explaining that they are responsible for reliable supplies. He also added that inflation is a problem, and a reasonable transition to a green economy should be gradual.

On Tuesday, Brent crude oil was trading above $88 per barrel, its highest level since 2014.

Growing oil prices are supported by expectations of higher demand in 2022 as the economy continues to recover. However, production concerns are mixed with rising geopolitical tensions on the supply side.

Late last year, Dalio warned about the risk of a sharp increase in inflation, explaining that asset growth is not the way to get richer, but just a decrease in people's purchasing power.

The rising price pressure is being felt globally. Inflation in the US was the highest since 1982, surging 7% last year. Eurozone's inflation also reached a new record high of 5% year-on-year in December.

According to Dalio, rising energy prices contribute to inflation and can leave people hungry.

However, he is not the only one who thinks this way. The ECB's Executive Board member Isabelle Schnabel told the American Finance Association's annual meeting this month that green energy development will lead to even higher inflation.

Goldman Sachs also noted that the process of achieving zero carbon emissions can lead to a significant increase in inflation. Analysts Jan Hatzius calculated that if carbon taxes rise to $100 per ton by the next decade, annual US inflation will be 0.25 percentage points over the first three years.

BlackRock CEO Larry Fink also clarified his stance in his annual letter to CEOs released on Monday, saying he does not support asset sale strategies when it comes to sustainable business practices. He believes that phasing out entire sectors or putting carbon-intensive assets into private hands will not lead the world to zero emissions, and it is needed to continue investing in oil and gas companies.

At the same time, Fink noted that companies that fail to adapt to the principles of sustainable development will be left behind.