- CNTV English - CCTV News

Homepage > News > Biz >

Danish financier warns green energy could be next financial bubble

12-20-2011 10:54 BJT

COPENHAGEN, Dec.19 (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.

Editor:Zhang Hao |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program