Green growth is a popular concept to counter the threat of ecological collapse. It soothes people’s minds and suggests there is an easy way out. But it is based on the wrong premises. More so, it’s a mere frame to help sustain the economy that caused our present problems in the first place, and that is bound to fail.
The relationship between stagflation and climate change is complex, with climate change more likely to cause stagflation rather than the other way around. However, as the US is finding these days, when stagflation is caused by policy change, that, too, can influence the development of climate change in several ways. It works particularly through its economic impact, energy transition challenges, consumer behavior, and policy implications.
Increasing supplies of earth metals such as lithium and cobalt drive prices down. Good news, you might say. But it is holding back the energy transition.