Danish financier warns green energy could benext financial bubble
COPENHAGEN, December19 (Xinhua) — A leading Danish financier warned Monday that green energy projects could be the next financial bubble.
Per Wimmer, who earned his fortune on Wall Street before the 2008 financial crash, believes politicians are fanning the next financial bubble by an overwhelming focus on green energy.
“It will be green energy that will be the catalyst for (the bubble),” Wimmer told Danish newspaper Nordjyske Stiftstidende.
“We will build many more Towers of Babel on the idea that just because it is green, that is what you must do,” he added.
As green energy becomes the watchword for growth for many politicians, it attracts many investors to the sector, who are in turn, lured by the prospect of political guarantees and support to green projects, even if they are not viable, Wimmer said.
He went on to compare green projects with information technology (IT) projects, which even a decade ago attracted serious financing simply on the strength of ideas.
The IT or dot-com bubble burst in early 2000, and eventually forced many IT firms to fail as their capital dried-up.
Wimmer, 41, is himself the millionaire owner of a London-based investment bank, and runs an organization involved in space research.
According to Nordjyske Stiftstidende, some Danish businesses in the green energy sector, such as those involved in wave energy technology, also believe the threat of a bubble is real.
However, the Danish government, which has an ambitious plan to produce all its heat and electrical power from renewable sources by 2030, responded by reiterating its commitment to green growth. It also distanced itself from being responsible for a bubble in the sector.
“It is the government’s intention that green technology will have a place in future growth policies, both because of Danish firms’ traditional strengths in this area, and because sustainability is a necessity,” said Ole Sohn, Minister for Business and Growth.
“It is however, neither the government’s responsibility nor intention, if the financial markets push green businesses up to a price level that the market cannot bear,” he told Nordjyske Stiftstidende