UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 10-Q

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     QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2008OR ̈
     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934


Commission file number 000-51198GLOBAL GREEN SOLUTIONS INC.(Exact name of registrant as specified in its charter)NEVADA(State or other jurisdiction of incorporation or organization)789 West Pender Street, Suite 1010Vancouver, British ColumbiaCanada V6C 1H2(Address of principal executive offices, including zip code.)(604) 408-0153Toll Free (866) 408-0153(telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days.YES x    NO  ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer, non-accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer
      ̈
     Accelerated Filer
      ̈Non-accelerated Filer
      ̈
     Smaller Reporting Company
     x


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).YES  ̈     NO x

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date:44,776,599 as of October 7, 2008.





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PART I  FINANCIAL INFORMATION

ITEM 1.     Financial Statements.

GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)INTERIM CONSOLIDATED BALANCE SHEETS(Unaudited)(Stated in U.S. Dollars)

AUGUST 31
     
     NOVEMBER 302008
     
     2007ASSETSCurrentCash and cash equivalents
     $
     44,834
     $
     11,779Amounts receivable
     
     193,764
     
     70,640Prepaid expenses
     
     98,919
     
     152,597337,517
     
     235,016Equipment
     
     25,975
     
     40,929$
     363,492
     $
     275,945LIABILITIESCurrentAccounts payable and accrued liabilities
     $
     805,012
     $
     542,900Loans payable (Note 5)
     
     1,759,301
     
     362,0582,564,313
     
     904,958Minority Interest
     
     -
     
     4,7142,564,313
     
     909,672Commitments And Contractual Obligations (Note 8)Subsequent Events (Note 11)STOCKHOLDERS DEFICIENCYCapital Stock (Note 6)Authorized:100,000,000 Common shares, par value $0.00001 per shareIssued and outstanding:44,471,599 common shares at August 31, 2008
     
     445
     
     40240,248,808 common shares at November 30, 2007Additional Paid-In Capital
     
     18,869,378
     
     14,548,580Shares To Be Issued (Notes 3 and 8)
     
     203,350
     
     -Warrants
     
     792,700
     
     2,341,150Deferred Compensation
     
     (469,960)
     
     (609,400)Deficit Accumulated During The Development Stage
     
     (21,596,734)
     
     (16,914,459)(2,200,821)
     
     (633,727)$
     363,492
     $
     275,945


The accompanying condensed notes are an integral part of these interim consolidated financial statements.F-1

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(Stated in U.S. Dollars)CUMULATIVEPERIOD FROMINCEPTIONJUNE 10, 2003THREE MONTHS ENDED
     
     NINE MONTHS ENDED
     
     TOAUGUST 31
     
     AUGUST 31
     
     AUGUST 312008
     
     2007
     
     2008
     
     2007
     
     2008Revenue
     $
     -
     $
     -
     $
     -
     $
     -
     $
     -Operating ExpensesConsulting fees
     
     281,061
     
     454,699
     
     958,237
     
     1,149,632
     
     2,594,028Finance charges
     
     -
     
     -
     
     -
     
     382,837
     
     2,019,584Interest and bank charges
     
     5,126
     
     2,918
     
     10,967
     
     29,237
     
     102,616Office and sundry
     
     59,919
     
     200,370
     
     382,669
     
     528,005
     
     1,174,884Professional fees
     
     19,310
     
     52,354
     
     154,176
     
     237,850
     
     659,217Project development expenses
     
     680,235
     
     918,261
     
     2,537,519
     
     1,524,267
     
     5,407,470Stock-based compensation
     
     78,804
     
     881,450
     
     651,955
     
     2,909,850
     
     6,929,293Impairment of intangibles
     
     -
     
     -
     
     -
     
     -
     
     357,100Impairment of advances for pilot project
     
     -
     
     -
     
     -
     
     -
     
     2,718,160Operating loss, before other income andminority interest
     
     (1,124,455)
     
     (2,510,052)
     
     (4,695,523)
     
     (6,761,678)
     
     (21,962,352)Other IncomeInterest income
     
     -
     
     913
     
     -
     
     30,650
     
     59,005Loss Before Minority Interest
     
     (1,124,455)
     
     (2,509,139)
     
     (4,695,523)
     
     (6,731,028)
     $
     (21,903,347)Minority interest in net loss of consolidatedsubsidiaries
     
     -
     
     168,058
     
     13,248
     
     207,403
     
     306,613Net Loss
     $
     (1,124,455)
     $
     (2,341,081)
     $
     (4,682,275)
     $
     (6,523,625)
     $
     (21,596,734)Basic And Diluted Loss Per CommonShare
     $
     (0.03)
     $
     (0.06)
     $
     (0.11)
     $
     (0.18)Weighted Average Number Of CommonShares Outstanding
     
     44,371,177
     
     38,604,063
     
     43,605,994
     
     35,277,122








The accompanying condensed notes are an integral part of these interim consolidated financial statements.F-2

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(Stated in U.S. Dollars)CUMULATIVEPERIOD FROMINCEPTIONNINE MONTHS ENDED
     
     JUNE 10, 2003AUGUST 31
     
     TO AUGUST 31,2008
     
     2007
     
     2008Cash Used In Operating ActivitiesNet loss for the period
     $
     (4,682,275)
     $
     (6,523,625)
     $
     (21,596,734)Adjustments to reconcile net loss to net cash used byoperating activitiesDepreciation
     
     20,057
     
     1,246
     
     34,184Minority interest in net loss of consolidated subsidiaries
     
     (13,248)
     
     (207,403)
     
     (306,613)Non-cash finance charges
     
     -
     
     382,837
     
     2,019,584Stock-based compensation
     
     651,955
     
     2,909,850
     
     6,929,293Non-cash consulting services
     
     191,290
     
     353,400
     
     713,670Non-cash license fee
     
     165,000
     
     -
     
     165,000Interest
     
     -
     
     18,533
     
     75,278Impairment of intangible assets
     
     -
     
     100
     
     357,100Impairment of advances to pilot project
     
     -
     
     -
     
     2,718,160Changes to operating assets and liabilitiesAmounts receivable
     
     (137,244)
     
     (25,594)
     
     (193,764)Prepaid expenses
     
     53,678
     
     (75,127)
     
     (98,919)Accounts payable and accrued liabilities
     
     262,112
     
     (35,736)
     
     805,012(3,488,675)
     
     (3,201,519)
     
     (8,378,749)Cash Flows Used In Investing ActivitiesPurchase of intangible asset
     
     -
     
     -
     
     (100)Acquisition of equipment
     
     (5,103)
     
     (14,067)
     
     (60,159)Pilot project facilities and equipment
     
     -
     
     (2,141,484)
     
     (2,718,160)(5,103)
     
     (2,155,551)
     
     (2,778,419)Cash Flows From Financing ActivitiesIssue of share capital, net of issuance costs
     
     2,106,936
     
     4,808,602
     
     7,907,588Net proceeds from convertible notes
     
     -
     
     -
     
     1,425,000Advances from minority interest
     
     22,654
     
     -
     
     110,113Loan advances
     
     1,397,243
     
     107,143
     
     1,759,3013,526,833
     
     4,915,745
     
     11,202,002Increase (Decrease) In Cash and Cash Equivalents
     
     33,055
     
     (441,325)
     
     44,834Cash and Cash Equivalents, Beginning
     
     11,779
     
     748,309
     
     -Cash and Cash Equivalents, Ending
     $
     44,834
     $
     306,984
     $
     44,834Cash And Cash Equivalents Are Comprised Of:Cash
     $
     44,834
     $
     306,984Supplemental InformationCash Activities:Interest paid
     $
     -
     $
     -Income taxes paid
     $
     -
     $
     -Non-Cash Investing and Financing Activities (Note 9)


The accompanying condensed notes are an integral part of these interim consolidated financial statements.F-3

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|1. | NATURE OF OPERATIONS AND GOING CONCERN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
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|   | Global Green Solutions Inc. is a development stage company and is devoting substantially all of its present efforts to establishing a new business. That business has primarily been focused on two areas: biomass combustion to generate industrial process steam and electrical power and biodiesel feedstock production.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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|   | The Company has the following seven subsidiary corporations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|   | The Company conducts a portion of its operations through some of these subsidiaries. GGS is developing and marketing steam generator systems that convert biomass (primarily wood and crop waste) to low-cost steam. The steam can be used for industrial purposes or to generate electrical power. VAT is the entity through which the Company and its 50% partner, Valcent USA, Inc. (VUI) have continued development of a joint project to use algae as a source for biodiesel feedstock and other products. PTY is actively marketing and developing business opportunities in South and Southern Africa, primarily for GGS projects. LTD currently has no operations or activity other than through its holding in Global Green Solutions Pty Ltd. Greensteam Development Inc., Greensteam Energy LLC and Florida Greensteam Equine Energy LLC are inactive.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
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|   | The Company has restructured its operations to focus on its commercial stage Global Greensteam business. To maximize working capital for its Greensteam projects, GGRN agreed on September 26, 2008 to sell its 50% ownership in VAT to VUI, which is a wholly-owned subsidiary of Valcent Products Inc. (See Note 3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
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|   | The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has incurred a net loss of $21,596,734 for the period from June 10, 2003 (inception) to August 31, 2008, has a stockholders deficiency, and has no revenue. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development and marketing of its projects. The Company plans to continue as a going concern by actively developing and marketing its biomass combustion projects. It intends to raise additional capital for the development and marketing of its projects primarily through the issuance of common shares and or the issuance of debt securities. It may also raise additional capital by selling interests in its projects, although there are no current plans to do so at this time. There can be no assurance that the Company will be successful in marketing and developing its projects or in securing financing. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.
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|   | The unaudited financial information furnished herein reflects all adjustments, which in the opinion of management are necessary to fairly state the Companys financial position and the results of its operations for the periods presented. These statements should be read in conjunction with the Companys financial statements and notes thereto for the fiscal year ended November 30, 2007. The Company assumes that users of the interim financial information herein have read or have access to the audited financial statements for the preceding fiscal year and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. Accordingly, certain footnote disclosure, which would substantially duplicate the disclosure contained in the November 30, 2007 financial statements has been omitted. The results of operations for the nine month period ended August 31, 2008 are not necessarily indicative of results for the entire year ending November 30, 2008.                                                                                                                                                                                                                                                                                                                                
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F-4

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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|   | Principles of Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
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|   | The accompanying consolidated financial statements include the Company and its subsidiaries or entities consolidated under the provisions of Financial Accounting Standards Board ("FASB") Interpretation No.46, as revised, Consolidation of Variable Interest Entities ("FIN46R"). All inter-company balances and transactions have been eliminated in consolidation.                                                                                                                                                                                       
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|   | FIN46R addresses the consolidation of certain business entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties ("variable interest entities"). Variable interest entities are required to be consolidated by their primary beneficiaries.                                                                                                               
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|   | Use of Estimates and Assumptions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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|   | Preparation of the Companys financial statements in conformity with United States generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The significant areas requiring managements estimates and assumptions relate to determining the fair value of stock-based compensation, fair value of shares issued for services and the acquisitions, and useful lives of long-lived assets.
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|   | Development Stage Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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|   | The Company is a development stage company as defined by Financial Accounting Standards No. 7. The Company is devoting substantially all of its present efforts to establishing a new business. All losses accumulated since inception have been considered as part of the Companys development stage activities.                                                                                                                                                                                                                                            
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|   | Equipment and Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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|   | Equipment is stated at net book value. Depreciation is computed using the straight line method, over twenty-four months, to allocate the cost of depreciable assets.                                                                                                                                                                                                                                                                                                                                                                                          
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|   | Deferred Financing Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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|   | The Company defers direct costs incurred in connection with the sale of common shares which are offset against the proceeds of the financing upon completion. Costs incurred in connection with convertible notes are deferred and amortized as a financing cost over the term of the convertible loans. Upon conversion of the loan, any unamortized amount of deferred financing costs is charged to stockholders' equity as a cost of financing.                                                                                                           
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|   | Financial Instruments and Concentration Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
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|   | The fair value of financial instruments which include cash, amounts receivable, accounts payable and accrued liabilities and loan payable were estimated to approximate their carrying value due to the immediate or relatively short maturity of these instruments. Management does not believe that the Company is subject to significant interest currency or credit risks arising from these financial instruments.                                                                                                                                       
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|   | The Company accounts for common stock purchase warrants at fair value in accordance with EITF 00-19, Accounting for Derivative Financial Instruments Indexed to and Practically Settled in, a Companys Own Stock. The Black-Scholes option pricing valuation method is used to determine fair value of these warrants.Use of this method requires that the Company make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates.                                                               
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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|2.  | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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|    | Basic and Diluted Net Income (Loss) Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|    | The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share", which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.                                                                                                                                          
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|    | Foreign Currency Translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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|    | The Companys functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with SFAS No. 52 Foreign Currency Translation, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in Canadian dollars. The Company has not, to the date of these financials statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.                                                                                                                                                                                                                                                                                                                                                     
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|    | Stock-Based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
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|    | On December 1, 2005, the Company adopted the fair value recognition provisions of Financial Accounting Standards Board (FASB) Statement No. 123(R),Share-Based Payment,(SFAS 123R). The Company adopted SFAS 123R using the modified-prospective-transition method. Under this method, compensation cost recognized for all periods prior to December 1, 2005 includes: a) compensation cost for all share-based payments granted prior to, but not yet vested as of November 30, 2005, based on the grant-date fair value estimated in accordance with the original provisions of SFAS 123, and b) compensation cost for all share-based payments granted subsequent to November 30, 2005, based on the grant-date fair value estimated in accordance with the provisions of SFAS 123R. In addition, deferred stock compensation related to non-vested options is required to be eliminated against additional paid-in capital upon adoption of SFAS 123R. The results for periods prior to December 1, 2005 were not restated.
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|    | The Company accounts for equity instruments issued in exchange for the receipt of goods or services from parties other than employees in accordance with SFAS No. 123 and the conclusions reached by the Emerging Issues Task Force (EITF) in Issue No. 96-18. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by EITF 96-18.                                                                                                                                                                                                                                                                                                                               
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|    | Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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|    | In December 2007, the FASB issued SFAS No. 141 (Revised 2007), Business Combinations (SFAS No. 141R). SFAS No. 141R will change the accounting for business combinations. Under SFAS No. 141R, an acquiring entity will be required to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions. SFAS No. 141R will change the accounting treatment and disclosure for certain specific items in a business combination. SFAS No. 141R applies prospectively to business combinations for which the acquisition date is on or after the beginning of the entitys first annual reporting period beginning on or after December 15, 2008. Accordingly, any business combinations completed by the Company prior to December 1, 2009 will be recorded and disclosed following existing GAAP. Management has not determined the effect that adopting this statement would have on the Companys financial position or results of operations.            
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|F-6
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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|   | Recent Accounting Pronouncements (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
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|   | In December 2007, the FASB issued SFAS No. 160, Non-controlling Interest in Consolidated Financial Statements, an amendment of ARB No. 51 ("SFAS No. 160"), which will change the accounting and reporting for minority interests, which will be recharacterized as non-controlling interests and classified as a component of equity within the consolidated balance sheets. SFAS No. 160 is effective as of the beginning of an entitys first fiscal year beginning on or after December 15, 2008. Earlier adoption is prohibited. Management has not determined the effect that adopting this statement would have on the Companys financial position or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
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|   | In March 2008, the FASB issued FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities  An Amendment of FASB Statement No. 133 (SFAS 161).SFAS 161 amends and expands the disclosure requirements of Statement 133 with the intent to provide users of financial statements with an enhanced understanding of how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations, and how derivative instruments and related hedged items affect an entitys financial position, financial performance, and cash flows.SFAS 161 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after November 15, 2008.The Company will adopt SFAS 161 in December, 2009.                                                                                                                                                                                                                                                                                                                                                                        
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|   | In May 2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles, or SFAS 162. SFAS 162 is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to be used in preparing financial statements that are presented in conformity with U.S. GAAP for nongovernmental entities. SFAS 162 is effective 60 days following the Securities and Exchange Commissions approval of the Public Company Accounting Oversight Boards amendments to AU Section 411, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles. The Company is currently evaluating the impact of adopting SFAS 162 but does not expect that it will have a significant effect on its financial position, cash flows or results of operations.                                                                                                                                                                                                                                                                                                                                                          
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|   | In May 2008, the FASB issued SFAS No. 163, Accounting for Financial Guarantee Insurance Contracts  An interpretation of FASB Statement No. 60, or SFAS 163. SFAS 163 requires that an insurance enterprise recognize a claim liability prior to an event of default when there is evidence that credit deterioration has occurred in an insured financial obligation. It also clarifies how Statement 60 applies to financial guarantee insurance contracts, including the recognition and measurement to be used to account for premium revenue and claim liabilities, and requires expanded disclosures about financial guarantee insurance contracts. SFAS 163 is effective for financial statements issued for fiscal years beginning after December 15, 2008, except for some disclosures about the insurance enterprises risk-management activities. SFAS 163 requires that disclosures about the risk-management activities of the insurance enterprise be effective for the first period beginning after issuance. The Company is currently evaluating the impact of adopting SFAS 163 but does not expect that it will have a significant effect on its financial position, cash flows or results of operations.
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|3. | PILOT PROJECT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  
|   | On October 2, 2006, and as amended June 25, 2007 the Company entered into an agreement with Pagic LP, Valcent Products Inc. (Valcent), and West Peak Ventures of Canada Limited. Under the terms of the agreement, Valcent and the Company agreed to jointly participate in the development of a patent pending, biomass systemto produce hydrocarbons while sequestering CO2, by growing certain algae. The amended agreement was to be the basis for a definitive contract between the Company and Valcent, which will be the governing document for the new venture.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|

F-7

-8-

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|3. | PILOT PROJECT (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | The agreement in place at November 30, 2007 required the Company to contribute up to $3 million to cover the estimated cost of the plant, with any further costs to be shared 50/50 with Valcent. The method of recovering the $3 million initial startup loan capital was to be determined in the final, definitive agreement. Costs incurred to November 30, 2007 in connection with the advances made by the Company, have been for (i) the acquisition and construction of the project facilities; (ii) acquisition of project equipment; (iii) materials, supplies and other project costs; and (iv) general and administrative expenses.                                                                                                                                                                                                                                                                                                                                                                                                        
|  
|   | At November 30, 2007, the Company was still in negotiations with Valcent for a final agreement. In May, 2008, the Company and Valcent formalized an agreement to continue the development of the project through Vertigro Algae Technologies, LLC (the LLC) of which the Company and Valcent USA, Inc. (a subsidiary of Valcent) (VUI) each own 50 percent. Under that agreement, the existing assets are transferred to Valcent Manufacturing Inc., a wholly owned subsidiary of Valcent, while the Company is to receive $3 million on a priority basis from the net cash flow of the LLC. The Company is to receive 70% of any such net cash flow until it has received $3 million in excess of its percentage interest of such cash flow. In connection with a license technology agreement entered into by the LLC, the Company agreed to issue 300,000 restricted common shares with a combined fair value of $165,000 as its share of a one-time license fee. The amount was expensed in the period and is included in Shares To Be Issued.
|  
|   | The preliminary carrying value of the advances at November 30, 2007 was deemed to be impaired owing to uncertainty that cash flow will result from the project and was charged to operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  

The carrying value of the Companys investment was determined as follows:Balance November 30, 2005
     $
     -Project facilities
     
     393,271Balance November 30, 2006
     
     393,271Project equipment
     
     1,520,309Project facilities
     
     858,448Amount due to venture
     
     (53,868)Impairment
     
     (2,718,160)Balance November 30, 2007
     $
     -


Costs incurred in connection with the project during the nine months ended August 31, 2008 total $1,056,210 and have been charged to project development expenses.

On September 26, 2008, the Company concluded an agreement (the Agreement) with VUI to sell the Companys 50% ownership in the LLC to VUI. Under terms of the Agreement, subject to closing within 60 days, the Company will receive $5 million, less advances made by Valcent on the Companys behalf through July 31, 2008 pursuant to the LLCs Operating Agreement (the Cash Proceeds), and 5,000,000 common shares of Valcent. Advances to be deducted from the $5 million are estimated to total $324,000, resulting in Cash Proceeds to the Company of approximately $4,676,000. Closing of the Agreement is conditional on Valcent obtaining $10 million in a private offering, of which the Cash Proceeds amount is specifically earmarked for payment under the Agreement. The Company will retain rights for the commercial deployment of VAT technology when integrated with Greensteam projects and specific biomass power generation applications.



F-8

-9-

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|4. | CONVERTIBLE NOTES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | On May 5, 2006, the Company issued Convertible Notes (the notes) in the aggregate amount of $1,500,000 due and payable on May 5, 2007 together with interest at the rate of 8% per annum compounded annually. Attached to the Notes were 1,399,999 Class A Warrants and 1,399,999 Class B Warrants (the Warrants). Each Class A Warrant was convertible into one share of common stock upon the payment of $0.75 per warrant. Each Class B Warrant was convertible into one restricted share of common stock upon the payment of $1.25 per warrant. All of the Class A and B Warrants expired in May, 2008 with none having been exercised.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   | At the election of the holder, the notes and interest accrued thereon were convertible into one restricted share of common stock at the lesser of (i) $0.75 per share or (ii) seventy percent (70%) of the average five closing bid prices of the Companys common stock as reported by Bloomberg L.P. for the five trading days preceding the conversion date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   | The Company has allocated the proceeds received between the notes and the detachable warrants on a relative fair value basis. The fair value of the warrants was estimated using the Black-Scholes option pricing model at the date of issue, while the fair value of the notes was estimated by multiplying the number of shares that would result from an immediate exercise of the conversion option, by the market price on the date of issue. The relative fair values of the notes and the warrants determine the debt discount attributable to the warrants. The result was $574,500 of the proceeds being allocated to the warrants and $925,500 being allocated to the notes. The resulting discount on the notes is amortized over the term of the notes to maturity such that, in the absence of any conversions, the carrying value of the notes at maturity would be equal to the face amount of $1,500,000. In the event of a conversion of any or all of the face amount of the notes, the proportionate amount of the unamortized discount as of the date of conversion is immediately charged to operations.                                                                                         
|  
|   | In accordance with the provisions of EITF Issue No. 00-27 Application of Issue No. 98-5 to Certain Convertible Instruments (EITF 00-27), the Company determines any intrinsic value beneficial conversion feature on the notes by comparing the market price of the Companys common stock at issuance of the notes to the effective conversion price of the notes, as determined by dividing the proceeds allocated to the notes by the number of shares that would result from an immediate exercise of the conversion option. The initial beneficial conversion feature was determined to be $1,396,774; however, in accordance with the provisions of EITF 00-27, it is limited to the proceeds allocated to the notes, being $925,500. This beneficial conversion feature is recorded as an immediate charge to additional paid-in capital and a further discount on the convertible note carrying value. This further discount is amortized over the term of the notes to maturity. In the event of a conversion of any or all of the face amount of the notes, the proportionate amount of the unamortized beneficial conversion feature as of the date of conversion is immediately charged to operations.
|  
|   | As of November 30, 2007, the Company had recorded as finance charges a cumulative total of $574,500 of amortization of the discount resulting from the allocation of proceeds to the warrants and a cumulative total of $925,500 of the intrinsic value beneficial conversion feature, leaving total unamortized amounts of $NIL (November 30, 2006 - $254,794). Consequently, no further charges were recorded in the nine months ended August 31, 2008. During the nine months ended August 31, 2007 the Company recorded $97,586 of amortization of the discount resulting from the allocation of proceeds to the warrants and $157,208 of the intrinsic value beneficial conversion feature.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   | As of November 30, 2007, a cumulative total of $1,500,000 of convertible note principal and a cumulative total of $75,278 of accrued interest had been converted into 2,661,090 shares of the Companys common stock leaving $NIL convertible note principal or accrued interest outstanding. Consequently, no further note principal or accrued interest was converted into common stock in the nine months ended August 31, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|  

F-9

-10-

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|5. | LOANS PAYABLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | The Company received short term loans totaling $1,759,301 as at August 31, 2008 from directors, officers, related parties, and another company. These loans are unsecured, are non-interest bearing, and have no specific terms of repayment.                                                                                                                                                                                                                                                                                 
|  
|6. | CAPITAL STOCK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  
|   | Common Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|  
|   | During the nine months ended August 31, 2008, the Company issued shares of common stock as follows:                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  
|   | iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | v)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | vi)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | vii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  
|   | viii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   | ix)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   | Stock Options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  
|   | During the nine months ended August 31, 2008, the Company had the following stock option activity:                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | The Company granted a total of 944,850 stock options at exercise prices ranging from $0.00001 to $0.50 per share. In accordance with SFAS 123R, the Company expenses the fair value of these options, estimated to be $479,300. Of this amount, $460,000 will be expensed on a straight-line basis, over the related option vesting period or service contract period and the remaining $19,300 was recorded as debt settlement consideration in connection with the settlement of $19,500 owing under a consulting agreement.
|  
|   | To August 31, 2008, the Company has expensed $154,043 of this fair value and $325,257 will be recorded on the future vesting of these options.                                                                                                                                                                                                                                                                                                                                                                                
|  
|   | During the year ended November 30, 2007, the Company had the following stock option activity:                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  
|   | The Company granted a total of 1,640,000 stock options at exercise prices ranging from $0.00001 to $1.06 per share. In accordance with SFAS 123R, the Company expenses the fair value of these options, estimated to be $1,498,050 on a straight-line basis, over the related option vesting period or service contract period.                                                                                                                                                                                               
|  
|   | To August 31, 2008, the Company has expensed $1,167,050 (November 30, 2007 - $973,738) of this fair value, $233,800 (November 30, 2007 - $338,400) has been recorded as deferred compensation in stockholders equity, $NIL (November 30, 2007 - $185,912) will be recorded on the future vesting of options and $97,200 relates to options which were forfeited prior to vesting.                                                                                                                                            
|  

F-10

-11-

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|6. | CAPITAL STOCK (Continued)                                                                                                                                                                                                                                                                                                                                                      
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | Stock Options (Continued)                                                                                                                                                                                                                                                                                                                                                      
|   | During the year ended November 30, 2006, the Company had the following stock option activity:                                                                                                                                                                                                                                                                                  
|  
|   | The Company granted a total of 7,725,000, stock options at exercise prices ranging from $0.00001 per share to $0.50 per share. In accordance with SFAS 123R, the Company expenses the fair value of these options, estimated to be $5,533,000 on a straight-line basis, over the expected term of the options, which is based on the options contractual term.                
|  
|   | To August 31, 2008, the Company has expensed $5,485,000 (November 30, 2007 - $5,161,100) of this fair value, $Nil (November 30, 2007 - $93,700) has been recorded as deferred compensation in stockholders equity, $Nil (November 30, 2007 - $230,200) will be recorded on the future vesting of options and $48,000 relates to options which were forfeited prior to vesting.
|  
|   | The following table provides certain information with respect to the above stock options that are outstanding and exercisable at August 31, 2008:                                                                                                                                                                                                                              
|  

Stock Options
     Stock Options
     Weighted AverageExercise
     Issued and
     Outstanding and
     RemainingPrices
     Outstanding
     Exercisable
     Contractual Life$0.50
     1,300,000
     1,300,000
     0.38 years$0.50
     675,000
     675,000
     0.42 years$0.50
     200,000
     200,000
     0.64 years$0.50
     1,100,000
     1,100,000
     1.21 years$0.50
     500,000
     500,000
     1.29 years$0.50
     15,000
     15,000
     1.88 years$0.50
     500,000
     -
     1.58 years$0.50
     300,000
     -
     1.66 years$1.00
     300,000
     300,000
     1.38 years$1.00
     300,000
     300,000
     1.63 years$1.00
     200,000
     200,000
     1.82 years5,390,000
     4,590,000 The Companys stock option activity for the periods ended August 31, 2008 and November 30, 2007 is as followsWeighted AverageWeighted Average
     RemainingNumber of Options
     Exercise Price
     Contractual LifeBalance outstanding, November 30, 2006
     7,625,000
     $
     0.22
     2.39 yearsGranted during the year
     1,640,000
     
     0.78Expired / forfeited during the year
     -
     
     -Exercised during the year
     (3,827,500)
     
     0.02Balance outstanding, November 30, 2007
     5,977,500
     
     0.49
     1.64 yearsGranted during the period
     944,850
     
     0.42Expired / forfeited during the period
     (212,500)
     
     1.03Exercised during the period
     (1,319,850)
     
     0.01Balance outstanding, August 31, 2008
     5,390,000
     $
     0.57
     1.16 years
  F-11 -12-


GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|6. | CAPITAL STOCK (Continued)                                                                                                                                                                                                                  
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | Stock Options (Continued)                                                                                                                                                                                                                  
|  
|   | As at August 31, 2008, the aggregate intrinsic value (AIV) under the provisions of SFAS No. 123R of all outstanding, vested stock options was $NIL and the AIV of options exercised during the period ended August 31, 2008 was $991,294.
|  
|   | Warrants                                                                                                                                                                                                                                   
|  
|   | The Companys warrant activity for the periods ended August 31, 2008 and November 30, 2007 is as follows:                                                                                                                                  
|  

Weighted AverageNumber of
     
     Weighted Average
     RemainingWarrants
     
     Exercise Price
     Contractual LifeBalance, November 30, 2006
     4,106,998
     $
     0.92
     1.58 yearsGranted during the year
     2,572,014
     
     1.41Expired during the year
     -
     
     -Exercised during the year
     (25,000)
     
     0.75Balance, November 30, 2007
     6,654,012
     
     1.11
     0.67 yearsGranted during the period
     1,176,471
     
     1.50Expired during the period
     (5,785,188)
     
     1.12Exercised during the period
     (200,000)
     
     0.50Balance, August 31, 2008
     1,845,295
     $
     1.41
     1.88 years


The following table provides certain information with respect to the above share purchase warrants that are outstanding and exercisable at August 31, 2008:

Warrants
     Weighted AverageOutstanding and
     RemainingExercise Prices
     Exercisable
     Contractual Life$0.75
     210,000
     0.08 years$1.40
     150,000
     3.17 years$1.50
     250,000
     0.89 years$1.50
     58,824
     1.25 years$1.50
     1,176,471
     2.28 years1,845,295




F-12

-13-

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|6. | CAPITAL STOCK (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | Warrants (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|   | At November 30, 2007, the Company had 665,000 unit purchase warrants outstanding at exercise prices from $1.00 to the greater of $1.00 or a price equivalent to a Volume Weighted Average Price, for periods ending from June 27, 2008 to August 19, 2008. Each of the unit purchase warrants provided the holder the option to acquirea unit of the Company, with each unit being identical to the related private placement units. The unit purchasewarrants have not been included in the table of warrant activity above. The fair value of these unit purchase warrants of $202,700 was included in the portion of the corresponding financing proceeds charged to additional paid in capital in the year ended November 30, 2007. All of these unit purchase warrants expired unexercised during the nine month period ended August 31, 2008.
|
|
|  
|7. | RELATED PARTY TRANSACTIONS AND AMOUNTS OWING                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   | During the nine months ended August 31, 2008, the Company carried out a number of transactions with related parties in the normal course of business. These transactions were recorded at their exchange amount, which is the amount of consideration established and agreed to by the related parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | The following are related party transactions and amounts owing at August 31, 2008 that are not disclosed elsewhere in these financial statements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|  
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|  
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|  
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|  
|8. | COMMITMENTS AND CONTRACTUAL OBLIGATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  

| | i) | The Company entered into an agreement effective February 1, 2007 and having a five year term with a privately held company controlled by an officer of the Company, to provide services of a Chief Executive Officer, as well as office premises for the Company in Brussels, Belgium. This agreement superseded an earlier agreement was that was cancelled by mutual consent. The fees for providing the services are as follows:
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   
| |    | i.                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |   
| |    | ii.                                                                                                                                                                                                                                                                                                                                                                                                                                
| |   
| |    | iii.                                                                                                                                                                                                                                                                                                                                                                                                                               
| |   
| |    | An annual performance bonus of 1% of net profit;                                                                                                                                                                                                                                                                                                                                                                                   
| |   
| |    | In addition, the Company agreed to grant the right to buy 4,250,000 shares of the Company at $0.00001. 4,250,000 shares were issued by January 31, 2008. The agreement may be terminated upon provision of 6 months notice by the Company or 60 days notice by the Chief Executive Officer.                                                                                                                                        
| |   

F-13

-14-

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|8. | COMMITMENTS AND CONTRACTUAL OBLIGATIONS (Continued)
|-- | ---------------------------------------------------
|  
|   | ii)                                                
|  
|   |                                                    
|  
|   |                                                    
|  
|   |                                                    
|  
|   |                                                    
|  
|   |                                                    
|  
|   |                                                    
|  
|   |                                                    
|  

| | * | 150,000 shares of restricted common stock upon execution of the definitive agreement (now issued);                                                                                          
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  
| | * | 850,000 shares of restricted common stock upon execution of a steam supply contract or similar contract with a major oil company;                                                           
| |  
| | * | 500,000 shares of restricted common stock if the initial steam generating unit achieves reasonably acceptable commercial production;                                                        
| |  
| | * | 500,000 shares of restricted common stock upon the earlier of (a) the one year anniversary of the execution of a steam supply contract, or (b) commissioning of a 4th steam generating unit;
| |  







F-14

-15-

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

8.       COMMITMENTS AND CONTRACTUAL OBLIGATIONS (Continued)

| | * | 1,000,000 shares of restricted common stock upon the earlier of (a) the commissioning of the 10th steam generating unit or (b) the second anniversary of the steam supply contract;           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  
| | * | 1,000,000 shares of restricted common stock upon the earlier of (a) commissioning of the 10th steam generating unit or (b) the second anniversary of the execution of a steam supply contract.
| |  

| | iii) | On July, 13, 2007 an agreement was fully executed, effective from March 1, 2007, for the services of a Vice President, strategy and business development. The agreement has a three year term and includes base annual compensation of $130,000, other payments of $8,000 per annum, incentive bonus stock options, and an option to purchase 100,000 shares at $0.00001, vesting after satisfactory completion of a continuous twelve month period from the effective date. 100,000 shares were issued by August 31, 2008. Additional bonus stock options may be issued upon the Company initiating a bonus plan. The agreement may be terminated upon three months notice.                                                                                                                                    
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     
| | iv)  | On September 18, 2007 an agreement was fully executed, effective from May 1, 2007, for the services of a Chief Operating Officer. The agreement has a five year term and includes base annual compensation of $96,000 plus $12,000 annually for providing a serviced office, and $48,000 annually for marketing and communication services. All amounts are payable monthly. The contract may be terminated upon six months notice.                                                                                                                                                                                                                                                                                                                                                                             
| |     
| | v)   | Effective February 23, 2008, the Company entered into an agreement with a twelve month term for capital markets, corporate finance and communications advice in Europe. Compensation under this agreement is comprised of an engagement fee of $10,500; $10,500 monthly (increasing to $15,000 based on securing $2,000,000 in equity financing); and 40,000 restricted common shares of the Company per quarter, in advance. The agreement was terminated in May, 2008 and a settlement is under discussion with the service provider. 40,000 restricted common shares with a combined fair value of $31,600 were expensed in the period and are included in Shares To Be Issued.                                                                                                                              
| |     
| | vi)  | Effective March 20, 2008, the Company entered into an agreement for a Finder to introduce the Company to potential lenders, investors, partners, or similar financing resources. Compensation under this agreement is comprised of a retainer of $150,000, with $25,000 due upon execution of the agreement and $25,000 per month thereafter for five months, with any outstanding balance being due immediately if $1,000,000 in equity funding has been received; plus a Success Fee consisting of 1.5% in cash of any debt raised and 8% cash and 8% as warrants of any equity raised. The Agreement has an initial term of twelve months and continues thereafter until cancelled by either party upon 30 days written notice. The agreement was cancelled by mutual agreement after the first two payments.
| |     
| | vii) | Effective May 1, 2008, the Company entered into an agreement for the provision of services of a General Manager for its subsidiary, Global Green Solutions Pty Ltd. The agreement has a three year term ending April 30, 2011 and may be terminated on three months notice. Compensation under this agreement is comprised of a base fee of $81,600 annually, payable monthly, and an option to acquire 100,000 restricted common shares at $0.00001, vesting immediately. 100,000 shares were issued by August 31, 2008.                                                                                                                                                                                                                                                                                       
| |     



F-15

-16-

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|8. | COMMITMENTS AND CONTRACTUAL OBLIGATIONS (Continued)    
|-- | -------------------------------------------------------
|  
|   | viii)                                                  
|  
|   | ix)                                                    
|  
|   | x)                                                     
|  
|9. | NON-CASH INVESTING AND FINANCING ACTIVITIES            
|  
|   | The Company recorded non-cash finance costs as follows:
|  

Nine Months EndedAugust 31, 2008
     August 31, 2007Amortization of the discount resulting from the allocation towarrants of proceeds from convertible notes
     $
     -
     $
     97,586Amortization of the intrinsic value beneficial conversion featureof the convertible notes
     
     -
     
     157,208Amortization of deferred finance costs resulting from paymentof finders fees
     
     -
     
     128,043$
     -
     $
     382,837




F-16

-17-

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|9.  | NON-CASH INVESTING AND FINANCING ACTIVITIES (Continued)                             
|--- | ------------------------------------------------------------------------------------
|   
|    | During the nine months ended August 31, 2008:                                       
|   
|    | -                                                                                   
|   
|    | -                                                                                   
|   
|    | -                                                                                   
|   
|    | -                                                                                   
|   
|    | -                                                                                   
|   
|    | During the nine months ended August 31, 2007:                                       
|   
|    | -                                                                                   
|   
|10. | SEGMENTED INFORMATION                                                               
|   
|    | The Companys operating segment is the development of renewable energy technologies.
|   
|    | Following are project development expenses by type of project:                      
|   

Three Months Ended
     
     Nine Months EndedAugust 31,
     
     August 31,
     
     August 31,
     
     August 31,2008
     
     2007
     
     2008
     
     2007Emissions reduction - pipelines
     $
     -
     $
     22,198
     $
     -
     $
     151,323Biodiesel feedstock pilot project
     
     217,384
     
     726,211
     
     1,221,210
     
     877,374Biomass-fuelled steam generation
     
     397,990
     
     125,245
     
     1,144,075
     
     300,133Other
     
     64,861
     
     44,607
     
     172,234
     
     195,437$
     680,235
     $
     918,261
     $
     2,537,519
     $
     1,524,267


|11. | SUBSEQUENT EVENTS
|--- | -----------------
|   
|    | a)               
|   



F-17

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GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AUGUST 31, 2008(Unaudited)(Stated in U.S. Dollars)

|11. | SUBSEQUENT EVENTS (Continued)
|--- | -----------------------------
|   
|    | b)                           
|   
|    | c)                           
|   
|    | d)                           
|   

























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ITEM 2.     Managements Discussion and Analysis of Financial Conditions and Results of Operations.

This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

Global Green Solutions Inc. is a development stage company and is devoting substantially all of its present efforts to establishing a new business. That business has been primarily focused on two areas: biodiesel feedstock production (Vertigro Algae Technologies or VAT); and biomass combustion to generate industrial process steam and electrical power (Greensteam).

- VAT is the entity through which the Company and its 50% partner, Valcent USA, Inc. (VUI) have continued development of a joint project to use algae as a source for biodiesel feedstock and other products.
- Greensteam uses a high thermal efficiency, low air emission technology to economically generate renewable steam from waste biomass, primarily wood and crop waste. The steam is to be sold under long term contract for industrial process heat and for electrical power co-generation.

The Company has restructured its operations to focus on its commercial stage Global Greensteam business. To maximize working capital for its Greensteam projects, the Company agreed on September 26, 2008 to sell its 50% ownership in VAT to VUI.

Under terms of the agreement, subject to closing within 60 days, the Company will receive $5 million, less advances made by Valcent on the Companys behalf through July 31, 2008 pursuant to the LLCs Operating Agreement (the Cash Proceeds), and 5,000,000 common shares of Valcent. Advances to be deducted from the $5 million are estimated to total $324,000, resulting in Cash Proceeds to the Company of approximately $4,676,000. Closing of the agreement is conditional on Valcent obtaining $10 million in a private offering, of which the Cash Proceeds amount is specifically earmarked for payment under the agreement. The Company will retain rights for the commercial deployment of VAT technology when integrated with Greensteam projects and specific biomass power generation applications.

Cash Requirements and Liquidity

The Company has incurred a deficit of $21,596,734 from inception to August 31, 2008 and has no revenue. Its current lack of liquidity, if continued, will prevent the Company from moving ahead with its key projects and will create serious doubt regarding its ability to continue as a going concern. To August 31, 2008, the Company received short term loans totaling $1,759,301 from directors, officers, related parties, and another company. These loans are unsecured, are currently non-interest bearing, and have no specific terms of repayment. The future of the Company is dependent upon its ability to obtain ongoing financing and eventually, upon future profitable operations from the development and marketing of its projects.





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The Company plans to continue actively developing its Greensteam biomass combustion projects. It must obtain financing for the development and marketing of these projects through the issuance of common shares and / or the issuance of debt securities. It also plans to raise additional capital by selling interests in its Greensteam projects. No revenue is expected until mid-2009, from the first Greensteam unit, a quarter scale pilot unit which is to be constructed under the agreement signed March 31, 2008 with Aera Energy LLC, an oil and gas company in California (Aera). Capital costs and operating costs for testing of the pilot unit are estimated to total $5.7 million. The Aera contract is being modified whereby Aera will provide $3 million in refundable R&D towards these costs, to be repaid with interest, through reduced pricing of steam sales to Aera from the first commercial scale unit, starting in Q2 of 2010. The Company needs to raise the remaining $2.7 million in order to proceed with construction and testing of the pilot unit. As noted above, the Company expects to receive $5 million, less certain advances, from the sale of its 50% interest in VAT. However, at least $2.6 million of those proceeds will be required to eliminate our current debts, including payables and loans. In addition operating costs of approximately $230,000 per month are required on an ongoing basis.

We need to obtain financing for each of the following:

|1. | Funding required for in-house general and administrative expenditures for the final quarter of the fiscal year ending November 30, 2008 is estimated to be $820,000 and $3.2 million for the twelve months ending August 31, 2009. These estimates include our Vancouver corporate office, our Greensteam operations office in Bakersfield, California, and our South African subsidiary. The twelve month estimate includes $300,000 for pre-contract project development work for a new Greensteam project in South Africa.                                                                                                                                                                                                                                   
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. | Under the terms of the agreement for the sale of our 50% interest in VAT, we have no further requirement to contribute a share of any costs for that project. The sale was a strategic decision by the Company, recognizing that its Greensteam projects were at a more advanced stage of commercialization than VAT. The Company believes that the probability of financing and successfully developing Greensteam is increased with that business being the total focus of the Companys efforts.                                                                                                                                                                                                                                                             
|  
|3. | The first of our Greensteam units, the quarter scale pilot unit, on which we expect to commence construction as soon as project financing is in place, will require approximately $4.6 million of capital and a further $1.1 million for testing. This unit will allow complete proof of performance and emissions levels. We estimate that it will be possible to have this unit completed and operational within seven months of the start of construction. The average unit build cost for the total of ten full scale Greensteam units currently planned under the contract with Aera in California is $7 million. Construction of the full scale units is currently planned to occur from October, 2009 to June, 2011.                                     
|  
|   | Two Greensteam projects in South Africa are in advanced stages of negotiation. If a contract is concluded, the first project is expected to commence in July, 2009. Capital costs required for this project are estimated at $28.8 million, of which $8.6 million will be required within the twelve months ending August 31, 2009, along with an estimated $300,000 of project development costs. The second project is expected to commence in October, 2009 with an estimated cost of $23.4 million. Based on discussions to date with financing sources in South Africa, the Company expects that the majority of financing for the South African projects will be made available through a combination of debt and project equity from within that country.
|  

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We are pursuing a number of project and equity financing opportunities to address the forgoing requirements. We believe that our current Greensteam projects are particularly suitable for debt financing, having hard assets and a relatively short build time per unit, followed by immediate cash flow as each unit comes into production. The fact that our Greensteam subsidiary has now signed a definitive agreement with a major oil and gas company significantly increases, in our view, the likelihood of obtaining the required financing to commence construction of the pilot unit in California.

Results of Operations

Notable Balance Sheet changes from November 30, 2007 are as follows:

- Amounts receivable increased due to advances for short term funding assistance to a party engaged in connection with our Greensteam project.
- Prepaid expenses decreased as insurance premiums prepaid at November 30, 2007 were allocated to the current period.
- Accounts Payable increased primarily as a result of deferral of payments owing to Company officers, certain consultants, and a company owned by a significant shareholder, due to limited cash flow.
- Loans payable increase of $1,397,000 is comprised of short term loans from another company, Directors, Officers, a major shareholder and a company controlled by that shareholder, in response to immediate funding requirements.
- Additional Paid-In Capital (APIC) increased due to a share issuance in the current period with proceeds approximately $2 million in excess of par value, less a fair value estimate of $478,000 attributable to the warrant component of that same issuance, plus $454,000 attributable to Stock Based Compensation, $19,000 being the fair value of options granted on debt settlement, the exercise of options and warrants for proceeds approximately $107,000 in excess of par value, shares issued for consulting, having a value that was approximately $192,000 in excess of par value , and a reallocation to APIC of $114,000 related to the exercise of warrants and $1,912,000 related to the expiry of warrants.
- Shares To Be Issued resulted from 300,000 shares to be issued to a licensor of the technology utilized by Vertigro. Market value as of the date of the agreement was $0.55 resulting in value of $165,000. 40,000 shares (value of $31,600) and 25,000 shares (value of $6,750) are to be issued for consulting services. There were no comparable amounts at November 30, 2007.

Notable changes in results of operations are as follows:

- There were no finance charges in the nine months ended August 31, 2008 as all amounts related to those costs had been fully amortized by November 30, 2007.
- Professional fees decreased primarily due to approximately $70,000 in legal services incurred in 2007 with no comparable items in 2008, for example legal costs in connection with the acquisition of Greensteam.
- Project development expenses increased primarily due to the following: All costs related to Vertigro are being expensed ($1,221,000) this year whereas at August 31, 2007 only $877,000 was charged to project development, with other costs being capitalized. At November 30, 2007 the full amount was impaired and charged to operations but at August 31, 2007 that had not occurred.Greensteam project development activity has ramped up as the project has progressed, resulting in aperiod over period cost increase of $858,000. Pipeline emissions reduction project work in 2007resulted in costs of $151,000 with no equivalent in 2008.

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- Stock-based compensation decreased because the effective number of options vested in 2007 was 3,936,971 versus 904,644 in 2008. In addition, the weighted average fair value of vested options was slightly lower in 2008 at $0.72, versus $0.74 in 2007.

Milestones Planned for Q4 Fiscal Year 2008 and Fiscal Year 2009;

Financing, either through the issuance of common shares, project equity, and / or the issuance of debt securities is essential for the Company to be able to complete the following milestones. We do not currently having sufficient funds on hand to complete them.

|1) | Biodiesel feedstock                                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | Complete the sale of our 50% interest in Vertigro Algae technologies LLC to Valcent USA, Inc., our partner in this venture and owner of the other 50% interest.
|  
|2) | Greensteam                                                                                                                                                     
|  
|   | (a)                                                                                                                                                            
|  
|   | (b)                                                                                                                                                            
|  
|   | (c)                                                                                                                                                            
|  
|   | (d)                                                                                                                                                            
|  
|   | (e)                                                                                                                                                            
|  

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide information under this item.

ITEM 4.     CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures- Our Principal Executive Officer and Principal Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures, that our disclosure controls and procedures were effective.

Internal Controls Over Financial Reporting- We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.



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PART II  OTHER INFORMATION

ITEM 1A.   RISK FACTORSWe are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of1934 and are not required to provide the information under this item.ITEM 6.     EXHIBITS.The following documents are included herein:

Exhibit No.
     Document Description10.1
     Guaranty between Valcent USA, Inc. Valcent Manufacturing, Ltd., Valcent ManagementLLC, Vertigro Algae Technologies LLC and Valcent Products EU Limited.10.2
     Security Agreement between Valcent Products Inc. (together with its subsidiaries, includingVertigro Algae Technologies LLC) and Platinum Long Term Growth VI, LLC.10.3
     Patent, Trademark and Copyright Security Agreement with Valcent Products, Inc., ValcentUSA Inc., Valcent Manufacturing, Ltd., Valcent Management LLC, Vertigro AlgaeTechnologies LLC, Valcent Products EU Limited and Platinum Long Term Growth VI,LLC.31.1
     Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-OxleyAct of 2002.31.2
     Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-OxleyAct of 2002.32.1
     Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the ChiefExecutive Officer.32.2
     Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the ChiefFinancial Officer.
















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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 14thday of October, 2008.

GLOBAL GREEN SOLUTIONS INC.BY:J. DOUGLAS FRATERJ. Douglas Frater, President and PrincipalExecutive OfficerBY:ARNOLD HUGHESArnold Hughes, Principal Accounting Officer,Principal Financial Officer and Treasurer































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EXHIBIT INDEX





|Exhibit No. | Document Description                                                                       
|----------- | -------------------------------------------------------------------------------------------
|10.1        | Guaranty between Valcent USA, Inc. Valcent Manufacturing, Ltd., Valcent Management         
|            | LLC, Vertigro Algae Technologies LLC and Valcent Products EU Limited.                      
|           
|10.2        | Security Agreement between Valcent Products Inc. (together with its subsidiaries, including
|            | Vertigro Algae Technologies LLC) and Platinum Long Term Growth VI, LLC.                    
|           
|10.3        | Patent, Trademark and Copyright Security Agreement with Valcent Products, Inc., Valcent    
|            | USA Inc., Valcent Manufacturing, Ltd., Valcent Management LLC, Vertigro Algae              
|            | Technologies LLC, Valcent Products EU Limited and Platinum Long Term Growth VI,            
|            | LLC.                                                                                       
|           
|31.1        | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley 
|            | Act of 2002.                                                                               
|           
|31.2        | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley 
|            | Act of 2002.                                                                               
|           
|32.1        | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the Chief      
|            | Executive Officer.                                                                         
|           
|32.2        | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the Chief      
|            | Financial Officer.                                                                         



















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