[myrmidon]

The entire point of capitalism is to incentivise people to do things that other people are willing to pay for.

Induced demand is a second order effect of that at best, and both ecological concerns and negative growth are demonstrably compatible with capitalism: Just consider leaded gas/CFC and per-capita primary energy consumption as direct examples.

The big problem with sustainability/climate change in general is not that countermeasures/solutions are incompatible with a capitalist system, the problem is that too many people are too selfish to sacrifice any form of past/present/elsewhere observed luxury in order to achieve that goal.

[Barrin92]

Demand, mass society and mass consumption/production aren't just a second order effect. Payment and incentives you have in pre-capitalist society. What defines the modern world is capital accumulation, hence the name. And capital will never go where it cannot grow. There is no VC company that funds a degrowth social media platform that has the explicit goal of slowing communication down and reduce the commercial value of its investment.

It is true that right now you de-facto have places that experience degrowth and are capitalist at the same time, but that's transitory. Firms do not go where they shrink, debt will increase, labor will emigrate, privation will increase, and then you'll have a crisis. You can't stand still or shrink under the current regime. If a perma-culture is something you want to pursue you'll need a new form of social ownership and production.