Inflation can be triggered by several factors, such as excess demand, increased production costs and over-expansion of money supply.

According to European Central Bank President Christine Lagarde, climate change may have something to do with rising price levels as well.

"Climate change affects inflation, and inflation is the beast that all central bankers — whether they wear a green jacket or not — want to tame and discipline," she said at a summit in Paris last month.

Lagarde adds that in addition to impacting inflation, climate change also "affects our balance sheet" and "is a financial risk for the banks we supervise."

Going forward, she urges world leaders to "forge ahead with a global transition to ensure our economies are future-proof."

"This means not only reducing greenhouse gas emissions to net zero and adapting our economies to shield them from climate change but also tackling the root causes of the severe destruction of nature that is threatening the vital resources we rely on for our survival," she said.

Amidst rising price levels, investors have been exploring inflation-resistant real assets. For instance, new companies have innovated ways for people to earn passive income in the real estate market. Here's how to invest in rental properties with as little as $100 while staying completely hands-off.

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Given Lagarde's emphasis on climate change's impact on inflation, you might also want to look into companies that can address challenges on the climate front. Here are three green stocks that are actively tackling the issue.

Tesla Inc. (NASDAQ:TSLA)

According to the U.S. Environmental Protection Agency (EPA), 28% of America's greenhouse gas emissions in 2021 came from the transportation sector — and particularly from burning fossil fuels for cars, trucks, ships, trains and planes.

The EPA estimates that a typical passenger vehicle emits approximately 4.6 metric tons of carbon dioxide per year.

Tesla is helping resolve the issue by producing electric vehicles (EVs), which have no tailpipe emissions.

The company is making quite an impact. In the second quarter of 2023, it delivered 466,140 vehicles, representing an 83% increase year over year.

Tesla has been one of the more volatile names in the stock market. Shares fell a staggering 65% in 2022 but are up 147% in 2023.

First Solar Inc. (NASDAQ:FSLR)

Solar energy can play a significant role in reducing greenhouse gas emissions. One reason is that it produces no emissions during the power generation process. And according to the United Nations, life-cycle assessments of solar power "clearly demonstrate that it has a smaller carbon footprint from ‘cradle-to-grave' than fossil fuels."

First Solar's solutions help humans harness the power of the sun. The company produces solar panels, including those used in utility-scale solar power plants.

The business brought in $548 million in net sales in the first quarter of 2023. For the full year, net sales are projected to be between $3.4 billion and $3.6 billion.

The stock market had a choppy ride over the past year, but First Solar investors probably aren't complaining. Over the past 12 months, shares have surged more than 170%.

NextEra Energy Partners LP (NYSE:NEP)

NextEra Energy Partners was created by energy company NextEra Energy Inc. (NYSE:NEE) to own, manage and acquire clean energy projects that generate steady cash flows.

Today, NextEra Energy Partners' portfolio holds interests in wind, solar and energy storage projects in the U.S., along with natural gas infrastructure assets in Texas and Pennsylvania.

Because natural gas is not considered a renewable energy source, NextEra Energy Partners is not a renewables pure-play. But it recently announced plans to become one.

"To lead this transition, we are launching a process to sell our natural gas pipeline assets, and we are suspending incentive distribution rights fees to NextEra Energy through 2026," John Ketchum, chairman and CEO of NextEra Energy Partners, said in a press release.

The partnership also stands out for its cash payout to investors.

NextEra Energy Partners currently pays quarterly distributions of 84.25 cents per share, giving the stock an annual yield of 5.9%. Management expects to grow the distribution per unit by 12% to 15% per year through at least 2026, although they mentioned that given the current capital market environment, the growth rate will probably be "at or near the bottom end of this range."

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