I recently posted a similar question regarding a mystery green wire behind my engine (5.7 Mercruiser ) Mine is coiled, like on a telephone handset and it comes out of a conduit/tubing which houses other wires. The tubing is attached to the inside of the transom and the wire also has a lug on the end, to take a screw/bolt. General consensus is that it's a bonding wire. My original post includes a picture, so you might like to compare?