What Are Green Infrastructure Bonds?

Created by the World Bank in 2007, green bonds now represent approximately $346 billion of the $95 trillion bond market according to Climate Bonds Initiative. Toronto Dominion’s Green Bond Special Report of November 1, 2013 describes the new financial instrument in the following terms:

“[Green] bonds are a good vehicle for supporting environmental investment on a large scale, especially capital intensive green infrastructure, like wind and solar energy. The bonds provide a steady stream of capital over many years, allowing projects to be launched and kept afloat before they become profitable.”

The reality is that these bonds will never become profitable, since the ability to increase production, which justifies “profit” in any sane society, will be destroyed with the application of the sorts of infrastructure deemed “green” by the oligarchy controlling this bond market. True profit can only come from activities which increase the energy flux density of society through creative discoveries, whereas any attempt to reverse this process, as the green bonds intend to do, must fail.

The low energy flux density power derived from “sustainable” sources as wind or solar are provably incompetent. Where it would take approximately 17 600 acres of land covered with windmills to produce about 1200 megawatts of power, the equivalent 1200 megawatts derived from nuclear sources would take up an area no larger than several city blocks. Quantitatively identical, the qualitative factor of difference of energy flux density of either source is even more dramatic. Where nuclear power can easily power a society’s industrial needs, a windmill’s energy output is of such a low flux density that it cannot even make a windmill.

The fact is, that under current crisis conditions with rampant speculation, bail-outs, bail-ins and austerity, the world financial system has no stability which will permit for the issuance of capital intensive infrastructure requirements to replace the “unsustainable” infrastructure now supporting the activity of mankind worldwide.

To phase out those energy sources such as hydro power, fossil fuels and nuclear which are deemed “un-ecological” by the oligarchy’s scientific priesthood, and replace them with highly inefficient, low energy flux density sources that are labelled “green” such as wind, solar, and biomass, a mechanism must be created that will allow for financial capital to be tied directly to projects at fixed rates, and for long periods of time in order to bring them about. The “stabilizing” mechanism which is being touted to bring about this stability is known as the green infrastructure bond.

A recent Special Report on the subject issued by Toronto Dominion Bank (TD) details that the issuers of these bonds, which are yet to be standardized, will be  led by the World Bank, followed by the European Investment Bank, the International Finance Corporation, the African Development Bank and the Asian Development banks. As of October 30, 2013, Ontario will be the first government to begin issuing them. Who is intended to purchase them?

Why Sustainable Means Suicidal

The TD report lays out the fact that the principal source of investment will come from “institutional investors” which represent 72% of the global bond market, and are made up primarily of pension funds, mutual funds, insurance companies and sovereign wealth funds. What this means, is that the green bond scheme is actually a form of bail-in now being imposed by the Bank of International Settlement upon the world community. Where the uninsured liabilities of pensions and savings accounts in Cyprus were stolen in March 2013 in order to save “too big to fail” European banks, and Detroit pensions were stolen in order to save the “too big to fail” bondholding banks of America, so too will pensioners and mutual funds now be liable to have their savings stolen to pay for the defaults of the unviable “green energy” companies receiving contracts to construct sustainable infrastructure!

The report gives two examples of pension funds that are already tied to green investments. The California State Teachers Retirement System “has a mandate that incorporates climate risks into their asset allocation and investment strategy”, and the Denmark ATP Pension fund which has dedicated $1 billion toward climate change investment. According to TD, these are examples worth following.

The “green infrastructure” of the 1930s were known as concentration camps, and zyklon B. Do you want your pension and savings to be tied to the new green genocide of the 21st century?