Global clean tech investment fell 17% in H1 as China pulled back

Global investment in clean technologies dropped 17% to $770 billion in the first half of 2026, as a slowdown in China more than offset gains elsewhere, according to a new report from the Rhodium Group published on Wednesday.rhg+1

The decline brought global clean tech spending back roughly in line with levels recorded in the first half of 2024, interrupting a growth trend that had seen total investment reach a record $1.96 trillion in 2025.cleaninvestmentmonitor+1

China's Policy Shift Drives the Decline

China, the world's largest investor in clean technologies, accounted for 88% of the global decline in the first quarter of the year. Beijing's transition toward market-based pricing for new renewable energy generation in 2025 triggered a rush of installations ahead of the deadline, followed by a sharp pullback once the new rules took effect. The government also phased out consumer electric vehicle purchase-tax exemptions starting in January 2026.oilprice+1

"Geographically, the decline was driven by China, the world's largest cleantech investor, where a shift to market-based pricing put pressure on new renewable power investments," said Hannah Pitt, director of the energy and climate program at Rhodium Group and the report's author, as quoted by Reuters.mezha+1

The combined effect was a 49% slump in China's alternative energy and electric transport investment, translating into $133 billion in lost spending. China's share of global clean tech investment fell from 52% at the end of 2025 to 39% by mid-2026. Solar equipment manufacturing was hit particularly hard, with investment falling 62% to $8.8 billion in the first half of the year amid excess production capacity.finimize+2

India and Europe Fill the Gap

While China retreated, other regions stepped up. Investment in clean technologies rose 23% quarter-on-quarter in India during the second quarter, 11% in the United States, and 4% in Europe. In the US, clean energy and transportation investment totaled $75 billion in the second quarter of 2026, the second-highest quarter on record.linkedin+2

The geographic shift was most striking in solar manufacturing. India's share of new investment in solar equipment manufacturing rose from 5% to 48% between the first quarter of 2023 and the second quarter of 2026, signaling a redistribution of factory investment away from China. Over the same period, Europe's share of new clean tech investment climbed from 6% to 16%, and India's overall share rose from 2% to 7%.mezha

A Market in Transition

Pitt noted it remains too early to determine how much of the growth outside China reflects heightened attention to energy security amid geopolitical instability. The report also flagged early signs that manufacturing investment could recover in coming quarters, with announced industrial projects stabilizing through the first half of the year.mezha

"These developments are unfolding as governments reassess clean technology support, trade policies, and supply chain strategies," the report noted.oilprice