Global Panic as Green Sector Collapses and Investors Face Ruin


Governments, investors and even the World Bank are rushing for the exits in the Great Escape from the green energy bubble.

Solar energy appears to be the worst affected sector so far. Dow Jones reports on a startling U-turn by Britain’s ultra-green government has caught investors off guard and shock waves across the markets will likely precipitate the further rush from green energy projects to shale gas.

The UK’s Department of Energy and Climate Change made the shock announcement as it revealed a comprehensive review of its Feed-in Tariff (FIT) program. Indications from data provider, Prequin are that over $1bn in earmarked funds may be lost as Britain now promises it will only hold tariffs until April 2012.

Green Investors Feeling Betrayed by European Governments

Britain’s decision is another nail in the coffin for Europe’s tottering green energy market. Last year the first of several crushing body blows was dealt to environmentalist dreams when the Spanish government retrospectively cut the value of its tariffs in its own U-turning energy review.

The devastated Spanish Solar Photovoltaic Industry Association, with mass bankruptcies on the cards, is accusing their government of utter betrayal is yet to carry out a threat to sue over the ruling.

As the green house of cards collapses Netherlands-based investment manager DIF and BNP Paribas and venture capitalists such as Future Capital Partners are rumored to be extremely fearful of further repercussions coming at a time when European public opinion is bored and fatigued after two decades of endless global warming hype.

UK Energy Minister Charles Hendry made the starkly ominous admission, “one third of Britons think the science on climate change has been exaggerated.”

Not helping the green cause has been a succession of brutally cold Northern hemispheric winters which an increasing number of scientists fear may be the harbinger of the onset of a mini-ice age.

Abundance of Shale Gas Deflates Green Energy Bubble

Causing green lobbyists and environmentally focused investors to cry bitter into their carrot juice comes the news that China is making its move to become pre-eminent in shale gas investment.

Peter Foster in the Financial Post  (February 11, 2011) reports that energy company Encana is to get a proposed $5.4-billion investment by PetroChina in its shale gas operations. The move he says “confirms the soaring importance of a resource that 10 years ago was hardly on the commercial map.”

The market obviously liked the news of the Chinese investment as Encana shares jumped 4.5% to close at $32.02.
Savvy shale gas investors are also looking most eagerly at Canada where the discovery that Quebec has considerable shale gas potential has dealt another blow to the idea that the world’s energy resources are anywhere near a so-called “peak.” 

A strident Quebec Oil and Gas Association has hired former Parti Quebecois premier Lucien Bouchard to help lobby for provincial development to exploit the unexpected huge find.

With so many known large deposits of shale gas in countries such as Poland, Germany, France and the U.K.  economic strategists are finally waking up to the fact that this monumental new resources could help free Europe from the threat of disruptions from its main natural gas supplier, Russia.

Andrew Orlowski reporting for ‘The Register’ (February 10, 2011) reveals Holland has also joined the rush away from green by becoming the first country to abandon the EU-wide target of producing 20 per cent of its domestic power from renewables. The Dutch are now putting their long-term faith in nuclear. Netherland’s only nuclear reactor, the Borssele plant, scheduled for closure by 2003 is now planned to operate at least until 2034.

World Bank Joins Rush Away from the Green White Elephant 

Top line international bankers also appear to be abandoning ‘big green’ according to a report by climate scientist Roger Pielke Jr. who highlights two recent research papers published by influential thinkers inside the World Bank.

Economics papers by Robert Mendelsohn and Gokay Saher (here in PDF) and Medelsohn, Kerry Emanuel and Shun Chonabayashi (here in PDF) chop the legs from under the pro-green Stern Review (2007) and affirm that no human impact may be inferred on global climate.

With economists plainly joining an increasing number of scientists in global warming skepticism its little wonder there’s now a mass flight away from ‘renewables;’ such that both investors and governments are compelled to follow suit in the clearest indication yet that green energy won’t live up to its promises.

The key to long-term economic success now appears to be safely premised once again on solid market innovation, not ideologically driven government subsidies; such subsidized ventures have a long and notorious history as lame duck enterprises. It seems ‘green renewables’ has become the latest of these white elephants.

22 thoughts on “Global Panic as Green Sector Collapses and Investors Face Ruin

  1. Today the World “Woke up” when Egypt kicked the old buzzard out of office who dictated their lives for the past 30 years!!!

    Nobody likes to be DICTATED to do they?…………………then here’s my question: why do we ALLOW this Premier of our Province to DICTATE his idiotic GREEN schemes that are good for absolutely nothing except to bankrupt our Province?

    Not only should he be thrown out of office, he should answer to the people for misappropriation of Public Funds!!!!!!!!!!!!!!!

    While we are at it, what about McGuinty being responsible for directly causing Health problems in perfectly healthy people with his actions that place people in harms way by siting Wind Turbines too close to their homes?


    “[ Mr Charles Walker in the Chair ] – backbench business-Onshore Wind Energy”
    Westminister Hall Debates, 10 Feb.,2011

    To read the whole debate follow the next speaker>> box.

    Mention is made of energy poverty in the U.K. due to the present U.K. energy policies.

  3. Quixote, do you think the sight of millions of Egyptians marching toward the Presidential Palace made a few Liberals uneasy?

  4. hmm, maybe Lynne; curiously today people around here were starting to talk about mass protesting at the MPP’s office… Quixote might be on to something!

  5. I say get rid of the green ham & bacon. It doesn’t take a math or science major to figure out that the green energy is costing everyone nothing but green. Before you know it, everything you have is gone in the name of green energy. Abandon big green before it’s to late. The last one out is broke by green energy. The leader that takes a stand for the people and walks in the light will prevail. The person that says enough is enough. Turbines, wind farms and power lines destroy property values. A real leader would never think of such a plan. Green is not huge white turbines, green is not huge electrical lines, green is not throwing your money out the window. Green is the plush green pastures, alfalfa and wheat fields, the crystal green waters, the green mountain tops and blue clear skies.

  6. Kinda makes one “reflect” on our own lives doesn’t it?……….while I watched these people celebrate their Victory I actually thought how good it would feel to do the same thing to our Government!

    Why?…..because for the first time in a long time I realized very clearly that we are actually living in a “mini Dictatorship” and it is getting worse all the time………..we put up with this because we “think” that we have laws to protect us from harm and destructive practices by our “elected” officials, but actually these laws have either been eliminated or twisted to fit the actions that are having severe consequences with our “Quality of Life” and as we all know, our calls for order out of chaos falls on deaf ears now!

    I believe in Lawful dissent and a Peaceful existence…..McGuinty is pushing that patient approach to it’s limits!

  7. silence dogood, the reason ‘green’ is so hard to fight is because it really has nothing to do with the environment. The ‘green economy’ (de-industrialization and wealth distribution) and green energy (energy rationing) are the control mechanisms of global governance. Wind turbines and the GEA are just the tip of the iceberg.

  8. From the Westminister Hall debate in Parliament, 10 Feb.,11:

    Andrea Leadsom,MP
    “In 2008. the Center for Policy Studies predicted that meeting the 2020 renewable target would require a taxing of between 4 and 5 billion Euros a year. That would add Euro 3,000 to the total fuel bills of every household. In 2009,4 million households were in fuel poverty”

    Phillip Davies,MP

    “A report by the John Muir Trust – one of Scotland’s leading conservation bodies – found that wind turbines are 25% less effective than claimed. For a total of nine days during some of the coldest periods, output dropped below 10MW, which is barely enough to boil 3,000 kettles. The situation is absolutely ludicrous.”

    There is over an hour and a half of debate in parliament on onshore wind turbine issues here. Same issues Ontarians are involved in with the turbines.

  9. After reading the article above , It is safe to say that the Green Bubble HAS burst. In retrospect, The HST on our hydro bill was the straw that broke the camels back! Until then most people that thought they were not going to be directly affected by wind turbines all of a sudden were forced to wake up and look a little deeper at so called Green Energy. I truly believe that common sense will prevail world wide. The house of cards is falling as we speak. I do think it would be prudent to have a well advertised march on Queens Park. We need to call on ALL Ontarians to ask McGuinty to step down. We need to begin to heal our rural lands and repair the damage. Just my thoughts folks, because I think McGuinty’s pride will not allow him to back down at this time. He will try to spin it and carry on.

  10. Perhaps our Dear Leader, Our Fearless Leader, Our Great Leader, Our Ever-So-Green Leader was watching the events unfold in Egypt. Perhaps he too envisaged fleeing to preserve his own health and safety.

    This isn’t over yet.

    Perhaps “Fearless” will be removed from his many self imposed titles.

    Say goodnight Dalton.

  11. Dalton has not completed his agenda yet. The Liberals are working on a cap and trade system for 2012, so the stakes are high.

    Did you notice that they don’t seem to be saying much about this?

    Perhaps the Liberals think this might hurt their chances at re-election.

  12. I know I have posted enough — but this is too good not to pass on…

    From Britain, part of a House Debate, on wind turbines and Green Energy:

    “Philip Davies (Shipley, Conservative)

    Perhaps we will be gracious enough to introduce those kinds of limits when we have about 80% of the world’s manufacturing in our country. Given that we are not in that position, I would like to think that my hon. Friend would like to help the manufacturing industry in this country.

    The bottom line is that these policies will produce for Britain the most expensive electricity in the world if we carry on down this particular route. Is it morally or politically acceptable, particularly at a time of national austerity when families are struggling to pay their bills, for the Government to keep raising them just to meet an EU target? I do not think it is. It will hit the poorest people in our communities first.”

    Just a bit more here…

    Read it all — priceless!

  13. McGuinty has got to go. Remember this when it’s time to cast your ballot. And yes, we live in a dictatorship here in ontario, we also live in one nation wide, but with a minority in Ottawa their dictatorship is reduced. We need to dump MacGuinty but we also need to maintain the minority in Ottawa. Minority governments are bettter for us, not so good for the politicians. That’s just the way it should be. Make them work for their pay.

  14. Has anyone else noticed the derogatory statements about the Egyptians not being able to govern themselves and that quite possibly there will always be a dictatorship or theological governing party eventually in Egypt from all the world leaders and MSM?

    Why is it that World leaders, specially our own PM who is questioning the ability for the “people” to run their own lives and country?

    That’s because these fools at the top really believe “we the people” need to be guided daily in our lives because we are too stupid and ignorant to handle life without guidance!

    Guess what Nanny Dalton and Leader Harper! Ever notice how smoothly the country runs when you’re all on holidays and Parliament is closed?………which it is more than when it’s open?…………………’s because not only do we KNOW how to get up in the morning without a wake up call from our Dear Leader, but we can actually find our way to our low end paying jobs through traffic and actually produce something through an 8 to 10 hour day instead of just standing on a podium quacking “platitudes” about the awesome power of Green Wind and Solar and FIT programs and how our lives are all dependent on laws that make this Green World possible!

    WE the People are the TRUE STEWARDS of this land, not YOU! Get over yourselves and crawl back into that little nest we have made for you in the halls of power and do what we voted you into power for. To manage our money properly, to take direction from the People when needed and make sure our requests are put into action and quit thinking we aren’t even capable of wiping our own @$$ after our daily routines!


  15. The link at my post still works in regards to the debate in parliament.

    Lot’s of great talking points for us in this debate. As I recall one MP mentions the number of bird kills from turbines.

    This should be copied just in case it’s taken down.

  16. With regards to the Egyptian governance, how quickly these world leaders seem to forget. From what I have been led to believe by my educators there were many countries that faced exactly the same state of affairs some sixty-five years ago.

    There are too many around today who seem to forget the underlying root cause of the last two major world wars. The purpose of war is either to take control of and or to defend against the establishment of total power and dominance whatever the cost.

    One only has to realize that much is the same today, politically speaking, if they feel that they can get away with it. We go to the polls to vote for someone whose leader could be a possibly true blue political leader, however, based on a majority rule a particular party’s leader could if so inclined become a dictator.

    Remember this time next year Mr. McGuinty as you will be called this by Ontarians who have had enough as they will have viewed you as such.

  17. Any group members under contract with Rogers as a service provider should be aware that they are sponsoring the CANWEA shindig coming up in TO. They will be receiving a letter and phone call regarding possible termination of our corporate account.

  18. Pingback: We should take a lesson from Egypt | Blue Like You

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