Over the last few years, the global investment landscape has undergone a dramatic shift. Clean technology, once considered a niche sector, has now become one of the hottest areas of venture capital. With climate concerns intensifying and governments stepping up green policies, investors are pouring billions into renewable energy, storage, and decarbonization technologies. Europe has historically been a leader in this field, but the United States has quickly emerged as a powerful player, reshaping the clean-tech market.
Rajat Khare, the entrepreneur and investor behind Luxembourg-based Boundary Holding, explains this transition with a clear insight: clean-tech is no longer an optional play—it is a structural transformation in the global economy.
Clean-Tech Growth in the United States
The turning point for the US came with the Inflation Reduction Act (IRA) of 2020, which earmarked nearly $370 billion for climate and energy programs. This landmark policy created massive opportunities for both startups and institutional investors. Key incentives include:
Subsidies for battery manufacturing to boost domestic supply chains.
Federal funding for green hydrogen projects to replace fossil fuels.
Tax breaks for renewable energy and carbon capture initiatives.
Incentives to encourage consumer adoption of EVs and clean technologies.
As a result, the US has overtaken Europe and China to become the largest destination for clean-tech venture capital. A new wave of startups, research hubs, and manufacturing units is driving innovation in energy storage, hydrogen, and decarbonization solutions.
Global Investment Trends and Shifts
While Europe still invests heavily in offshore wind and sustainable agriculture, macroeconomic uncertainties and the energy crisis of 2023 slowed its momentum. This allowed the US to capture a larger share of global funding. Meanwhile, China remains dominant in solar panel manufacturing and large-scale installations, though geopolitical risks discourage some foreign capital.
Khare emphasizes that this global competition shows how policy, private investment, and technology adoption must work together. The US model of blending public subsidies with private innovation is giving it a significant edge.
Barriers in the US Market
Despite strong growth, clean-tech investing in the US is not without risks. Challenges include:
Regulatory complexity across federal, state, and local levels.
High upfront capital costs for technologies like hydrogen and smart grids.
Supply chain disruptions caused by trade tensions.
Rising interest rates, making early-stage investments more expensive.
Investors must balance optimism with caution—backing innovation while mitigating risks.
Breakthrough Innovations Powering Clean-Tech
Several technologies are accelerating adoption and profitability in clean-tech:
Advanced battery systems: Solid-state batteries promise longer life and faster charging for EVs.
Green hydrogen: Electrolysis powered by renewables can decarbonize industries like aviation and steelmaking.
Carbon capture: Direct Air Capture (DAC) plants are attracting major funding.
Smart grids: AI-driven infrastructure helps integrate diverse energy sources while minimizing waste.
These innovations make clean energy more efficient, affordable, and scalable, creating long-term value for both businesses and investors.
Rajat Khare’s Investment Lens
Boundary Holding’s philosophy aligns with long-term structural transformation rather than short-term speculation. Khare’s firm focuses on deep tech ventures that have the potential to disrupt entire industries. For him, clean-tech is not just about green branding but about scalable businesses that will define the next industrial revolution.
Khare highlights how investors should adopt strategies such as portfolio diversification, geographic spread, close tracking of policy shifts, and partnerships with corporates and research institutions. These approaches reduce risks while maximizing the potential of breakthrough startups.
The Role of Artificial Intelligence
AI is becoming a powerful enabler of clean-tech. From predictive maintenance in wind turbines to optimizing energy consumption in smart buildings, AI is unlocking efficiencies across the sector. Moreover, AI tools allow investors to evaluate large datasets—covering weather, supply chains, and resource availability—making investment decisions more data-driven and accurate.
Conclusion: A Future Aligned with Profit and Purpose
Clean technology represents one of the most important financial shifts of our time. With strong US policy support, technological innovation, and growing investor confidence, the sector is poised for long-term growth. Rajat Khare sees this as more than just a business opportunity—it’s a chance to align profit with sustainability.
For investors, the message is clear: clean-tech is not a passing trend but a structural transformation of global finance. Those who recognize this early, while balancing risk with vision, will not only profit but also contribute to building a sustainable future.
