The “Clean Energy” Collapse: Hedge Fund Manager Declares the Obvious

It’s finally happening. After years of government subsidies, media cheerleading, and financial markets propping up a house of cards, a hedge fund manager has come forward to say what many of us have known all along: the so-called clean energy sector is “dead for now.” Nishant Gupta, founder and chief investment officer at London-based Kanou Capital LLP, didn’t mince words when describing the dire state of solar, wind, hydrogen, and fuel cell investments.

“The whole sector… is dead for now,” Gupta stated plainly​. This marks a turning point—when even those inside the financial world, who have long played along with the green energy narrative, admit that the numbers simply don’t add up.

It’s no secret that the clean energy sector has been in trouble. Over the past year, the S&P Global Clean Energy Index has plummeted by 20%, while the broader S&P 500 has gained 16%​. That’s a devastating underperformance, especially in an industry that was supposed to be on the cusp of taking over the world.

Gupta cites several reasons for the industry’s collapse, including high interest rates, supply chain struggles, and what he calls “political headwinds” in the U.S. The latter is a reference to the Biden administration’s green agenda losing steam, and with the Trump administration poised to undo climate-focused regulations, green investors are panicking​.

In simple terms, the entire “green energy revolution” has been built on a foundation of government intervention rather than market fundamentals. Now, as subsidies and mandates run into reality, the industry is showing just how weak it really is.

Gupta is not alone in his assessment. The market is making its judgment clear. Take Sunnova Energy, a solar company that just saw its stock price crash by a staggering 71%​. The supposed transition to green energy has hit a wall, with traditional green darlings like Orsted A/S also suffering major setbacks.

Even hydrogen, which was supposed to be the next big thing, is floundering due to persistently high costs. Turns out, running an economy on a fuel that takes more energy to produce than it provides isn’t the magic solution politicians claimed it would be​.

If green energy is failing, what’s next? According to Gupta, energy investments will continue, but not in the way climate activists might hope. His hedge fund is looking at supply-chain-related opportunities, particularly companies that focus on efficiency improvements rather than outright green energy production.

Gupta’s picks include Ingersoll Rand, a company specializing in energy-efficient air and gas compressors, and Legrand SA, which benefits from rising electricity demand driven by electric vehicle chargers and heat pumps​. In other words, while the climate policy crowd insists on windmills and solar panels, the real money is in companies that deal with the inefficiencies their policies create.

For years, climate activists, politicians, and corporate ESG warriors have been telling the world that fossil fuels were on their way out, and that renewables would take over. They created a fantasy land where economics, engineering, and basic supply-and-demand principles didn’t apply.

Now, reality is catching up. As investors pull their money from failing clean energy ventures, the only question left is how much taxpayer money will be wasted before the political class admits defeat.

Gupta’s declaration isn’t just a market insight—it’s a confirmation that the laws of physics and economics still apply, no matter how much wishful thinking governments engage in. The “clean energy revolution” may not be completely dead, but it’s certainly on life support. And as the world’s energy needs continue to grow, reliable and affordable energy sources—not politically driven experiments—will win the day.