At first, rising prices for metals and minerals seem to be the unintended side-effects of an accelerated green transition that result in a new greenflation”/ Ruchir Sharma, FT, August 2 2021/.
However, there is no such a thing as “greenflation” because higher inflation is widespread and it is much more deeply rooted in the rerun of the 1970s. All prices tend to rise across the board due to the new U.S.-China cold war. Higher inflation and shortages are the results of higher strategic reserves and new military gadgets, like drones and super/quantum computers. These are really the areas of new “government-directed” spending.
Besides, green transition is just at its humble origins. The first baby steps could not be blamed for the present waves of inflation.
Instead of slowing green transition we should focus on creating new technologies, a green financing system and a bigger role for central banks/regulators to accelerate the transition to a new sustainable economic structure.
Governor Matolcsy, MNB, the Central Bank of Hungary