More than a trillion dollars of turbofunding for renewable energy projects supported by the U.S. Government or what is also referred as ESG (Environmental, Social and Governmental-based) investments, has gravely backfired. The misguided regulation and easy money have enticed both banks and capital venture corporations to make subprime business loans to startup businesses that have neither proven energy track records nor in some cases, any viable products. The risky loans have contributed in part, to recent bank collapses. A Wall Street Journal editorial states … “Congress’s $1.2 trillion 2021 ‘infrastructure’ bill was a starting gun for a clean-tech frenzy. The bill made available hundreds of billions for new ‘technologies’ for electrical grid modification, solar, carbon capture, battery storage, electric-vehicle charging infrastructure, geothermal, ‘smart community’ widgets, microgrids, CO2 transport, hydro, wind, fuel cells, waste management and efficiency gains. Last year’s so-called Inflation Reduction Act threw yet more dollars at would-be green innovators, while also extending billions in household tax credits in an attempt to lure Americans to buy these government-fueled concoctions.” One Silicon Valley bank claims that it has provided banking services to half of all U.S. venture-backed tech and healthcare startups. Along with the upside-down bond market and the bank’s propensity towards making donations to social causes, it explains the federal government’s fast bailout of recent failed banks to save the government’s renewable energy initiatives.
The mishandling of the federal funding and subprime business loans issued to “tech dreamers in climate technology and sustainability sector” will likely delay the progress and sustainability of proven energy tech companies with verifiable credit profiles. Without accountability, measurable environmental results and full factual disclosure to the American citizens, a nationwide climate energy industry will become a bust with many clean-tech companies facing insolvency.
All of the 2023 “Ahh! Climate” Series can be found here.
Sharing AHA! Discoveries
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