The last few years have seen a global reorientation of capital flows. Clean technology, once limited to eco-conscious projects, has become a mainstream driver of venture capital growth. With climate policies tightening and consumer demand shifting, investors now view clean-tech as both an environmental responsibility and a financial opportunity.
Entrepreneur and investor Rajat Khare, founder of Boundary Holding, has long been known for spotting transformative technologies early. His insights reveal why clean-tech is shaping up to be the next big frontier in global investing.
The US Surge in Clean-Tech
The Inflation Reduction Act (IRA) marked a turning point in US clean-tech. By allocating $370 billion to renewable energy and climate initiatives, the government created a fertile ground for private investment. Provisions included:
Tax credits for solar and wind projects.
Subsidies for domestic EV battery production.
Grants for carbon capture and storage facilities.
Incentives for hydrogen development.
The result? The US became the largest clean-tech venture hub, surpassing Europe and Asia. This influx of capital has fueled a thriving ecosystem of startups and innovation labs working on energy, storage, and smart infrastructure.
Comparing Europe, Asia, and the US
Europe, while historically strong in offshore wind and sustainable farming, slowed down in 2023 due to economic uncertainties and energy market shocks. China continues to dominate solar production and deployment but faces trade tensions and geopolitical barriers.
In contrast, the US has combined policy incentives with market agility, giving it a competitive advantage. Khare notes that this strategic blend explains why international capital is flowing into American clean-tech at an unprecedented pace.
Risks on the Horizon
Despite strong momentum, the clean-tech space is not without obstacles:
Complex regulations can delay project rollouts.
High capital requirements for large infrastructure.
Global supply chain disruptions can impact delivery.
Interest rate hikes make financing more difficult.
For Khare, the key lies in measured optimism—backing innovation while preparing for volatility.
Technology at the Core of Clean-Tech Growth
Breakthrough innovations are the backbone of the clean-tech boom:
Battery storage advances are making EVs more practical.
Green hydrogen is emerging as a clean industrial fuel.
Carbon capture technologies are attracting heavy investment.
Smart grids powered by AI are reshaping how energy is distributed.
Such technologies not only reduce emissions but also cut long-term costs, ensuring profitability alongside sustainability.
Investor Strategies in Clean-Tech
Rajat Khare recommends that investors adopt a long-term, diversified approach. Some strategies include:
Spreading investments between established players and promising startups.
Diversifying across regions—US, Europe, and Asia.
Tracking government policies to anticipate market shifts.
Partnering with corporates and research institutes to fast-track commercialization.
Boundary Holding’s approach is to invest in deep tech ventures that can transform industries through scalability and innovation.
AI as a Growth Catalyst
Artificial Intelligence is becoming indispensable in clean-tech. From analyzing weather data to optimize wind farms to predicting energy demand in real time, AI reduces inefficiencies and enhances decision-making. For investors, AI enables smarter forecasting of risks and returns, making it a critical tool in navigating the sector.
Conclusion: A Sector for the Future
Clean-tech investment is no longer just about being eco-friendly—it’s about building profitable, scalable, and future-proof businesses. With strong US policy frameworks, global competition, and disruptive technologies, the sector is set for continued growth.
As Rajat Khare highlights, the clean-tech revolution is a structural transformation of the global economy. For investors, this is an opportunity to align financial returns with sustainability. Those who embrace this shift today will be tomorrow’s leaders in both profit and purpose.
