For those of you who still have investments in the green stocks since last year, you have my heartfelt condolences.
As if the news from the green economy couldn’t be worse, with all the corruption we”ve seen in carbon trading, and the closure of the Chicago Climate Exchange, and the massive amounts of money that energy feed-in laws and government subsidies have cost the poor consumers.
Now on top of that we have the crash of RENIXX – the first stock index to track the performance of the world’s leading listed companies in the renewable energy sector, “the industrial field of the future”.
H/t: the German online TAZ here in a piece titled: Green Speculation Bubble Blows
RENIXX shares are weighted according to free-float market capitalization. To be listed in the index, companies must generate at least 50 percent of their revenue within the renewable energy industry.
Here’s an excerpt from the RENIXX World press release dated 4 January 2011:
Renewable energy shares: RENIXX World loses almost 30 percent in 2010
Muenster, [Germany] – The international stock index for the renewable energy industry RENIXX World (Renewable Energy Industrial Index) has ended the year 2010 with a drastic fall in value. The market barometer quote was 29.3 percent (at closing: 529.63 points) lower than a year ago(2009: 749.25 points), announced the IWR, a renewable energy institute, in Münster.
Within the framework of the periodic recomposition on January 1, 2011, the market weight of the companies in China listed in the RENIXX continues to climb. With the wafer manufacturers LDK Solar and Renesola and the wind turbine producer Goldwind, 10 Chinese companies have already been listed in the stock index from 2011 on. “The Chinese government pursues a very successful green industrial policy,” said IWR-director Dr. Norbert Allnoch. Other climbers are the renewable energy producer Enel Green Power (Italy) and the US specialist for the encapsulation of PV modules STR Holdings.
Three German producers of solar energy will be removed from the RENIXX World: Centrotherm, Roth & Rau and Q-Cells. In addition, as of 2011 the US wind energy supplier Zoltek and the Australian wind park operator Infigen Energy will no longer be represented in the RENIXX World.”
TAZ here has more, and writes:
The renewable energy economy has experienced the worst recession since the 1930s, explained IWR Director Norbert Allnoch. Many contracts for geothermal plants, offshore windmills and biogas plants have either been postponed or cancelled.”
TAZ also writes:
For the near future, Deutsche Bank in a study sees very little green. Because of increased ‘regulatory worries’, short-term more cautious expectations of companies in the photovoltaic sector and profit warnings issued by wind plant outfitters, the midterm profit expectations for renewables have been in some parts cut in half.”
In summary, it was the reddest year for the green economy thus far. I wonder if we’ll be reading all about it in the print media in the days ahead?