This is interesting, after watching the collapse in the last two years of entities like the Chicago Climate Exchange (CCX), which ended trading with a bag of charcoal briquettes being worth more than a ton of carbon futures, we have some clear evidence that the promised “green technology revolution” is headed for the scrap heap of history.
Ironically, it might be related to Mann’s hockey stick.
More on that later. First, here’s a description from the RENIXX website of what it is:
The RENIXX® (Renewable Energy Industrial Index) World is the first global stock index, which comprises the performance of the world´s 30 largest companies of the renewable energy industry whose weighting in the index is based on the market capitalization (free float).
“Free floating”, has just become “free falling”:
Since 2008, the index has lost about 90% of its value. In the last month, the nosedive seems to be accelerating:
Starting around May 10th, it seems the index has taken a steep drop, like an inverse hockey stick. Compare that to the graph they offer in their prospectus presentation:
The 2006 index got a boost, probably from from Al Gore’s movie, An Inconvenient Truth, released on May 24, 2006. 2007 was a banner year, and 2008 held the high ground, but look what happened in late 2009, coinciding with Climategate. I’m not saying that Climategate was the sole cause of that crash, as correlation isn’t causation, but it is most interesting. They haven’t updated the prospectus because as Steve McIntyre points out in his latest post on Schmidt’s “Conspiracy Theory”:
In the mining exploration business, investors who trade mining stocks know that “late” results are almost never “good” results. The reason is human nature. In public stocks, you’re legally obligated to report results promptly, but there is some play in timing. If promoters have “bad” results in the first part of the program, there is a great temptation to delay the bad news in the hope that later results will bail out the program. The best and only way to deal with temptations to delay bad results is to establish an announcement schedule ahead of time and stick to it.
That probably explains why they have not updated their online prospectus brochure, hoping that later results will “bail out the program”. I think that ship has sailed.
I found it also amazing that in their prospectus, they use Michael Mann’s IPCC hockey stick as a reference graph:
It would seem to me that any organization that would use such bad science as a reference for investors is destined to fail, and here, it seems that betting on Mann’s hockey stick isn’t working out.
Maybe investors read WUWT and Climate Audit. I wonder if it is too soon to use this cartoon:
h/t to The Hockey Schtick, who points out the number of dead and dying green companies:
Solar Trust of America
Olson’s Crop Service
Energy Conversion Devices
Teetering on the Brink:
The Bard Group
Enel Green Power