The Green Decline In Spain And Australia

Spanish Green investors are facing bankruptcy as the government cuts renewable energy subsidies.

Spanish Green investors are facing bankruptcy as the government cuts renewable energy subsidies.

Two new stories from Spain and Australia illustrate the continuing decline of the Man Made Global Warming political agenda and industry, in Spain the government is planning to cut the subsidies paid to renewable energy producers by 10% to 20%, while in Australia, land of the carbon tax Green NGO, The Climate Group is leaving the country because of the “unfavourable” policy environment.

In the early years of the first decade of this century to stave off Global Warming as it was called then, countries like Spain and Portugal followed the Germans and Greened their economies on the German Green subsidy model.

Over a decade later the total economic failure of Green renewable energy has been plain for all to see, a US House of Representatives report concluded that there was no such thing as lasting Green jobs. Green jobs because of the huge subsidies they require kill more jobs in existing industries than they create  in the new Green industries.

This killing of real jobs, for short term low carbon jobs has cost Spain 2.2 real jobs for every Green job created, now with the economy in ruins Spain is having to slash Green subsidies and this is likely to force many struggling Green energy companies and investors into bankruptcy.

Spain’s government will reduce subsidies to renewable-energy producers by 10% to 20%. The move could drive tens of thousands of struggling solar-energy companies and individual investors into default.

Juan Antonio Cabrero is bracing for the savings he invested in a solar-energy farm in northern Spain to disappear into light.

In 2008 Mr. Cabrero put up his €20,000 ($26,200) life savings and took on a €80,000 bank loan to buy part of the solar farm, pledging his home in nearby Tafalla as a guarantee. Spain’s government was promising more than two decades of large subsidies to spur the growth of solar energy, and Mr. Cabrero thought his investment would safely provide a nest egg for his planned retirement in 2018.

The Green subsidies promised, and indeed being currently paid are far above the current market rates, which has a familiar ring to it, and of course, are economically unsustainable in a healthy economy, in an economy on the edge of collapse like the Spanish economy, paying the subsidies is an economic disaster and cutting the economic subsidies is another disaster in waiting.

The move could drive tens of thousands of struggling solar-energy companies and individual investors like Mr. Cabrero into default at a time of deepening recession and eventually boost loan losses for banks that financed the projects.

Deputy Energy Minister Alberto Nadal told representatives of Spanish and foreign banks late last month that the government was planning to cut the level of government-guaranteed revenue for renewable-energy production, a government-guaranteed payment that effectively acts as a subsidy because it is far above market rates, according to people briefed on the meeting.

On the other side of the world in Australia a Green NGO, The Climate Group is quitting Australia because of the political climate, which is surprising on the face of it given Prime Minister Julia Gillard’s commitment to all things Green.

However recent elections  in the states of Queensland, NSW and Victoria have seen more conservative governments elected, who have started to systematically dismantle the Green policies put in place by their socialist predecessors, this and the likely massive swing to Tony Abbot and the Coalition in the Federal election on September 14th is seeing this bunch of Green rats jump ship:

The Climate Group, one of the world’s biggest NGOs working in the climate space, is withdrawing from Australia, citing the “unfavourable” policy environment.

The Climate Group, which has offices in the US, China, Europe and India, founded its Australian offices in 2005. It has been heavily involved with federal and state governments in the development of policies on climate change and clean energy, including energy efficiency and electric vehicles, and hosted Queensland’s first climate summit.

However, the offices are to be closed, Climate Group CEO Mark Kenber said. “This decision has been made in the light of the increasingly challenging political environment for action on climate change in Australia, despite the exceptional efforts of our local representatives,” he said in an email.

No doubt about it, the Warming Alarmist decline is a global phenomenon.

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About Tory Aardvark

Climate Realist, Conservative and proud NRA member. I don't buy into the Man Made Global Warming Scam, science is never settled. http://toryaardvark.com @ToryAardvark on Twitter ToryAardvark on Facebook

Posted on June 7, 2013, in Anthropogenic Global Warming, Church Of Climatology, Climate Change, Green Lies, Green Subsidy, Green Taxation, Renewables and tagged , , , . Bookmark the permalink. 4 Comments.

  1. Re The Climate Group; so much for faith. I suspect a cut in funding reinforced their decision. Time to start de-funding our clique of rent seekers too.

  2. Should not feel sorry for the opportunist that invested in the solar rip-off

  1. Pingback: The Green Decline In Spain And Australia | ajmarciniak

  2. Pingback: These items caught my eye – 7 June 2013 | grumpydenier

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