The United States remains the world’s leading generator of clean technology breakthroughs. From long-duration batteries and carbon-negative hydrogen to modular nuclear reactors and grid orchestration software, U.S. firms continue to push the technical frontier.
But in the wake of the rollback of key Inflation Reduction Act provisions and the stalling of key Department of Energy loan program funding as reflected in the budget bill signed into law on July 4, a new dynamic is emerging: The U.S. may lead in invention, but others lead in deployment.
The invention-deployment gap
Since the IRA’s passage in 2022, over $300 billion in cleantech investment has been announced. Yet much of it remains unbuilt. Post-2024 political shifts have introduced tax credit uncertainty, delayed DOE loan disbursements, and revoked funds for key clean energy programs. The result is a domestic deployment pipeline that is more congested than active.
But other nations are clearing the road.
Germany has locked in hydrogen procurement through H2Global. The United Kingdom, meanwhile, is extending its proven contracts for differences model to green hydrogen and long-duration storage, while accelerating grid reforms to better support renewable integration. South Korea, Canada, and the European Union are scaling infrastructure with more integrated permitting and public capital. They are paving the way to execute policy, not simply announcing support for projects.
Australia has emerged as a particularly compelling destination. With the Australia Clean Energy Summit coming up on July 29 to 30, the nation is drawing global attention as a proving ground for scalable deployment. Its “Future Made in Australia” package offers IRA-comparable incentives (like critical minerals tax credits) alongside execution-focused tools like the Capacity Investment Scheme.
Taken together with streamlined coordination these elements give Australia stronger momentum toward project realization than most peer economies.
In contrast, the U.S. resembles a traffic jam: skilled cleantech drivers behind the wheels of powerful vehicles, but red lights at every intersection. Companies are experiencing uncertainty about policy and timing, which is creating strategic paralysis.
For CEOs under pressure to deliver growth, sitting in gridlock is no longer viable. Some are already looking to switch lanes. Many more may need to.
A new global strategy for US firms
This shift is not about chasing lower costs. U.S. firms continue to lead in technologies where precision, durability, or resilience matter more than marginal pricing. Examples include technologies like iron-air batteries, carbon-negative hydrogen, battery recycling, and AI-enabled grid software.
Many of these technologies have been validated with a valuable seal of approval: U.S. government due diligence, for example in the form of DOE loan guarantees. But in 2025, even companies with this endorsement are starting to consider how they can find faster paths to revenue.
Those opportunities are increasingly overseas, as many foreign markets are embracing clean tech as a way of achieving their goal of energy independence in the name of national security. Governments are most proactive where the goals of national security, economic efficiency, and environmental protection are mutually compatible, as noted in a recent report from The Carlyle Group.
Those are the ideal markets to drive towards, ones that offer public financing schemes aligned with supportive industrial policy and long-term procurement that make cleantech infrastructure projects more achievable. It’s time to set up shop in places where cleantech is seen as an integral step towards energy independence in the name of national security — with the global climate as an additional beneficiary.
The Australian case study
Australia is particularly suited to this strategy, not only because it is a top-tier resource nation rich in critical minerals, solar, and wind, but also because it maintains one of the world’s most robust trade infrastructures.
With over 15 free trade agreements, including with the U.S., Australia provides tariff-free market access and a compliant supply chain for IRA-aligned exports. That makes Australia a prime landing pad for U.S. firms seeking supply chain resilience and topline growth across the APAC region.
Australia is also attractive for its offtake environment. Import-oriented buyers in Japan, Korea, and Singapore are actively securing future supplies of green hydrogen, ammonia and battery materials — and they’re looking to Australia. With tools like the Capacity Investment Scheme and Long-Term Energy Service Agreements, governments are also stepping in as price stabilizers, reducing merchant risk and anchoring revenue models.
And thanks to the U.S.-Australia Free Trade Agreement and a critical minerals partnership, IRA-aligned companies can source key inputs like lithium, nickel, and rare earths from Australia and still qualify for U.S. tax credits. That kind of dual-market alignment — low-carbon exports to Asia, and supply chain integration with U.S. decarbonization — is rare. For companies thinking globally, Australia offers offtake opportunities that are deeper, faster and more bankable than many currently available in the United States.
Execution over enthusiasm
Most U.S. cleantech businesses ready for deployments at scale don’t have teams ready for global expansion. They often lack large headcounts and have limited capital resources. But that shouldn’t be a death knell for smart global growth.
There is a more intelligent way to achieve global growth in a cost-effective way. The key is to 1) focus on high-readiness countries where policy aligns with offtake demand and public financing appetite, 2) leverage existing prior DOE awards to fast-track new funding approvals, and 3) build market fluency through a staged process to minimize upfront cash spend and allocate risk. That staging is best achieved via structured frameworks that leverage shared objectives of different constituencies, including co-developer partners, PFIs/ECAs, and offtakers.
This is not speculative globetrotting. It’s targeted deployment where demand is strong and the host government is welcoming.
And it’s also not offshoring. Global deployment isn’t about giving up on the U.S. market. On the contrary, by building offshore these companies can capture additional market share that they would not have otherwise won. It’s a way for U.S. cleantech to expand market share and maintain momentum.
What doesn’t work? Waiting for perfect clarity, or else assuming domestic patience will prevail over international momentum.
Caveat civitas: governments beware
Governments hoping to attract U.S. cleantech must take note that incentives alone no longer differentiate. Simply putting an “open for business” sign on the door is insufficient.
These countries are in competition with each other to attract cleantech and to make their market the preferred destination. The ones that win investment will be those that are best at:
- Offering clear pathways from interest to infrastructure;
- Coordinating funding, offtake and permitting;
- Accepting DOE approvals and other U.S. federal diligence as a shortcut for their own due diligence; and
- Treating American companies as co-developers, not just as suppliers
The measure of competitiveness in this environment is execution, not enthusiasm. As U.S. Energy Secretary Jennifer Granholm said, “we have to build faster, cheaper, cleaner — and yes, that means cutting the red tape, not just the ribbon.”
Taking the open lane
There’s still hope among some executives that U.S. policy clarity will return. But time is not on their side. Investors are impatient, and so are customers. And delayed opportunities translate into lost value.
In the words of early-20th century actor Will Rogers, “even if you’re on the right track, you’ll get run over if you just sit there.” His century-old warning applies to cleantech today.
This isn’t about giving up on the U.S. market entirely. It’s about companies finding a way to stay in the game. The companies going global aren’t abandoning the U.S. They’re hedging, diversifying, accelerating, and proving their capacity to deliver.
It’s time to take the initiative and start building where the road is already open. Yes, America still invents. But if other countries continue to deploy faster, they will shape the future cleantech economy. And the companies that want to lead it won’t wait for traffic to clear; they’ll take the open lane.
Larry W. Schwartz is a senior advisor at Pollination Group and CEO of the infrastructure developer Kitfield Group. The opinions represented in this contributed article are solely those of the author, and do not reflect the views of Latitude Media or any of its staff.
