Could the “Faltering” US Dollar Create Global Clean Tech Investment Opportunities?

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Last week, this excerpt from a Bloomberg email made me think: “The dollar is faltering, and there are ways to profit…. The US dollar has taken a beating this year, losing ground to other major currencies like the euro. The Bloomberg Dollar Spot Index, which measures the value of the dollar against a basket of 10 leading global currencies, fell almost 11% in 2025’s first six months, marking its worst first-half performance since 1973.”

In essence, the US dollar is currently performing worse than almost any other time since it was backed by gold reserves. This is a significant shift with wide-ranging global implications. Not only is Trump increasing the price of imported goods through tariffs, but also increasing the price by making our currency worth less in relation to other currencies.

US News also published a few recommendations, clearly intended for US-based investors, on how to invest with the weakening dollar. At the same time, I was reading through Michael Barnard’s excellent series on the world’s EV inflection points and his article on the different paths in the transition from coal to renewable energy.

Connecting the dots, I started thinking about international cleantech investment potential while the dollar declines and the importance of keeping on top of the transition happening globally … even if it seems to be stumbling at home.

Companies with International Sales and International Stocks

Some of the recommendations from US News related to large US-based companies with strong international sales, or international stocks. When the dollar is down and sales in rising currencies are converted back into dollars, the revenue in dollars effectively increases.

However, global markets are not the same as the US. It is easy to base decisions upon what you have first-hand experience with around you. Regarding the clean technology transition, it can be easy to think that it is stalling everywhere based on lagging domestic performance. However, other countries, like Norway, are transforming much faster, creating new investment opportunities in the process.

Emerging Markets

Additional investment recommendations from US News focused on emerging markets. China is clearly achieving renewable energy and EV tipping points at an accelerating rate. It now leads in cleantech sales, production, IP quantity, and IP quality. However, while some companies are strongly profitable, the market is highly competitive and labor costs have risen. Chinese companies are now increasingly looking to invest internationally, with global EV investments now overtaking investments in their home market.

In many developing countries, China has replaced the US in terms of aid and financing. Trade is shifting from the largest petroleum producer to the largest clean technology producer. China has been expanding as Africa’s top trading partner for the past 16 years and recently removed tariffs on the continent. For example, in Ethiopia, considered to be the model BRI country, economic growth has been impressive, and EV penetration leads much of the developing world. Other developing countries, particularly those in BRICS, could follow suit. This would not only create opportunities for Chinese companies, but also for local startups and supply chains.

There could be a lot of potential in the African startups I see Remeredzai Joseph Kuhudzai describe, like Ampersand. I can also see opportunities in the developments covered by Raymond Tribdino in Asia and Juan Diego Celemín Mojica in Latin America.

Commodities

Commodities were also mentioned as a possible way to benefit from a declining dollar. Many commodities, particularly fossil fuels, are traded globally in US dollars. When the dollar declines compared to other currencies, the dollar price of oil traded on global markets tends to go up. This could have some benefit for US domestic oil producers, while increasing prices to US consumers. In addition, as more people shift investments into that commodity, the price tends to go higher.

However, if you were a global petroleum producer selling a commodity in a currency that has lost value, but are paying for production costs (labor, electricity, etc.) in local currencies that have increased relatively in value, it stands to reason that it could become more difficult to turn a profit. As such, global oil production could become more challenging due to the currency it is being traded in becoming more volatile. US citizens investing in commodities might be a smart move, but global producers of commodities could suffer. This could help to explain why major US banks have recently been slashing financing to petroleum producers.

However, as countries move away from burning commodities that are traded in US dollars, they will also have less use for dollars, and values could drop further.

Where could the global cleantech opportunities lie?

I am not a financial advisor, and this shouldn’t be considered investment advice. However, it seems that the declining dollar could make investments in global companies, operating in markets moving away from fossil fuels, more attractive. Volatility in a once-stable currency used for petroleum trades could also accelerate the economic transition abroad. I don’t pretend to have all the answers, but I do see a lot of possibilities and opportunities in the global transition.

It is hard to know which way the markets will turn. However, with the declining dollar, it makes sense to pay attention to what is happening globally and stay on top of the accelerating clean technology transition abroad, even if the transition seems to be slowing at home.

Featured image: Crumpled US dollar from Images Money (CC BY 2.0 license)