View: The conundrum that confronts transition to a greener economy
The world faces a growing paradox in the campaign to contain climate change. The harder it pushes the transition to a greener economy, the more expensive the campaign becomes, and the less likely it is to achieve its aim, to limit the worst effects of global warming.
New government-directed spending is driving up demand for materials needed to build a cleaner economy. At the same time, tightening regulation is limiting supply by discouraging investment in mines, smelters, oil fields, or any source that belches carbon. The unintended result is greenflation – rising prices for metals and minerals such as copper, aluminum and lithium, which are essential to solar and wind power, electric cars, batteries and other renewable technologies.
