Global cleantech investment fell in first half on slowing China momentum

Global investment in clean technologies fell 17% to $770 billion in the first half of 2026, as a slowdown in China outweighed growth in some other markets, a new report from research firm Rhodium Group on Thursday found.

"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 report ‌author Hannah ⁠Pitt, a ⁠director in Rhodium's energy and climate practice. Much of the year-on-year decline reflected frontloading in the first half of ​2025 ahead of the policy transition.

That contrasted with stable or rising solar and wind investment in ​the U.S., Europe and India, according to the report, which looked at clean investments in power, transport, manufacturing and industry. While those economies are comparatively more exposed to oil and gas ​prices than China, it was too early to say ⁠how much ‌of their growth was linked to energy security concerns stemming from the ​Iran war, ​Pitt said.


The sharpest slowdown was in solar manufacturing investment, an ⁠industry that has been plagued by overcapacity. Solar manufacturing investment dropped by 62% to $8.8 billion in January to June. Investment in solar power generation fell 33% in the first half.

China's share of cleantech manufacturing investment globally fell to a record quarterly low of 33% in April to June. By contrast, at its peak in Q1 2023, China made up 71% of global cleantech manufacturing investment.

"As new investment in clean technology manufacturing in China continues to fall, other regions are playing ‌a growing role in driving global investment," Pitt said, although their share of existing capacity remains relatively low. India's share of new investment grew from ​2% to 7% ​between Q1 2023 and ⁠Q2 2026, and Europe's share from 6% to 16% during the same period.

The regional distribution of solar manufacturing investment in particular shifted. India's share rose from 5% to 48% over ​the same period.

The global decline brought first-half cleantech investment roughly back to the level of 2024, which saw $762 billion in investment recorded in the first half.

Manufacturing investment could start to pick up again in the quarters ahead. Announced manufacturing and industrial investment increased quarter-on-quarter in January to March 2026 and was steady in April to June, the report found.