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“Green” bonds a total FRAUD – less than 1% of proceeds used for stated purpose

  Trillions of dollars have been spent over the years trying to make the world more "green," but  all of it was for naught . New r...

 Trillions of dollars have been spent over the years trying to make the world more "green," but all of it was for naught.

New research reveals that for all the money dumped into green bonds, there is absolutely nothing to show for it. The environment is still just the same as it always was, except the country is much poorer now because of all the green scams.

Had things gone according to plan, the more than $2.6 trillion in green bonds that were issued over the last decade could have helped companies mitigate their climate worries. Instead, it was all a pointless, wasteful smokescreen.

The study, entitled "Green Bonds: New Name, Same Projects," was compiled by Pauline Lam, a visiting scholar at NYU's Stern School of Business, and Jeffrey Wurgler, a finance professor at the same institution.

The paper is scheduled to be presented at a conference at the University of Chicago on May 17.


Don't fall for the green scam

Before this paper was released, other studies about this same subject that focused on measuring the difference in yields between green and "brown" bonds, or what the industry calls a greenium, arrived at similar conclusions.

"The consensus of those prior studies was that the greenium is either nonexistent or so small as to be irrelevant," one report explains. "But those studies were unable to understand why this is so."

The new study dives even deeper into the subject by looking at the actual use cases to which green bond issuers issued the proceeds. Lam and Wurgler looked specifically at instances in which the proceeds were legitimately used to pursue novel green projects that are outside the realm of traditional financing sources. The way the team looked for this "additionality," as it is called, was by analyzing multiple sources, including the bonds' offering prospecti, various documents from the SEC (Securities and Exchange Commission), internal company reports and direct correspondence with the companies involved.

The main focus centered around both corporate and municipal green bonds that were chosen to maximize the potential for finding additionality. After all that effort, the team still came up short: there are no benefits to be found with green bonds.

Here is what their sample of corporate green bonds showed:

- 30 percent of all proceeds went towards basic refinancing of preexisting brown bonds

- Seven percent went towards purchasing green assets from other companies, which results in no net "societal increase in green assets"

- 29 percent was invested in projects that were already underway prior to the issuer's first issuance of a green bond

- 33 percent was used to launch new projects that were similar to other projects the company had already previously undertaken before issuing any green bonds

- One percent went towards initiative "a project whose green aspect is novel for the issuer"

It is that last bullet point that demonstrates the only charitable aspect of the green scam, and of course it is the lowest in terms of actual dollar amount. It turns out that most green money goes towards something other than what the industry claims.

"Investors themselves share the blame with the companies, since the absence of any significant greenium indicates that they are unwilling to accept a lower interest rate on green bonds in order to incentivize companies to do more than they would otherwise," reported Callaway Climate Insights.

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