The Strategist

WSJ: Green energy will spur global inflation

04/19/2022 - 06:05

Unless environmental rules in the European Union and the United States are overturned, the world will face strong rise in demand for metals and other commodities in the next ten years, according to the Wall Street Journal.

At the same time, the "staggering" level of basic fossil fuel consumption in the green economy will only increase global inflation.

"Wait till the rest of the commodities markets warm up if you think inflation has taken a worrisome turn. Copper, aluminum, nickel, and steel, which are widely used in manufacturing, have already increased in price, but not at the same rate as gasoline, energy, and food," the newspaper writes.

Leaders on both sides of the Atlantic claim that green energy, such as solar panels, wind turbines, and electric vehicles, will free Western countries from their reliance on volatile oil and gas.

The remedy, however, will be far worse than the disease, according to the article's author, because the green economy's massive consumption of fundamental fossil fuels will only fuel already-rising inflation.

Copper, nickel, aluminum, graphite, lithium, and other fossils are required in particular for the generation and storage of energy provided by wind turbines and solar panels.