Global cleantech investments report a significant decline in the first half of 2026.
In early September, Rhodium Group published its periodic report Clean Investment Monitor: Global H1 2026 Update. Unlike in previous years, the media pretended not to notice it. I almost missed it too.
Yes, but no. Here is a summary of the main facts.
In the first half of 2026, global cleantech investments were 17% below the level of the same period in 2025 and approximately correspond to those reported in the first half of 2024. The decline is most noticeable in China. The main findings are as follows:
Total investments in clean technology deployment in electricity and transport declined in the first half of 2026, both compared to the previous six months and compared to the same period in 2025. Investment in electricity fell by 31% in the first quarter from high levels in the fourth quarter of 2025, before increasing by 5% in the second. Investment in transport fell by 29% in the first quarter from the previous quarter, before increasing by 8% in the second. In the second quarter of 2026, spending on clean electricity and transport remained 39% and 6% below their levels in the second quarter of 2025, respectively.
China contributed the lion's share of the decline. The country’s move to market pricing for new renewable energy capacity in 2025 is causing a surge in capacity deployment ahead of schedule, followed by an uneven rollback. Starting in January 2026, Beijing will also begin to phase out a consumer tax exemption for electric vehicle purchases. As a result, China’s clean technology investment fell by $133 billion, or 49%, between the fourth quarter of 2025 and the first quarter of 2026. This follows a surge in solar and wind capacity deployment and electric vehicle purchases in the fourth quarter, before changes to government support. China accounted for 88% of the global decline in the first quarter.
In the second quarter of 2026, investment increased in several major markets. Compared to the first quarter, the increase was 23% in India, 11% in the United States, 9% in China, and 4% in Europe. Investment in India and Europe also exceeds Q2 2025 levels, while China and the US remain lower. China’s share of global cleantech investment shrinks from 52% in Q4 2025 to 39% in Q2 2026. These increases broaden the geographic scope of the quarterly recovery, but are not enough to offset the decline in Q1 or to indicate a fundamental shift in the global distribution of investment.
Investment in cleantech manufacturing is on a more sustained downward trajectory. The decline comes after several years of rapid capacity expansion, which has left existing solar and battery manufacturing capacity well above current demand, putting pressure on manufacturers’ prices and margins.
Despite an increase in overall cleantech investment in 2026, driven by the deployment of clean power and transportation technologies, investment in the construction and expansion of cleantech manufacturing and industrial sites has declined for two consecutive quarters. It fell 14% in the first quarter and another 7% in the second quarter to $27.9 billion. This continues a downward trend in cleantech manufacturing investment that began in late 2023.
For the first time, China’s share of global cleantech manufacturing and industrial investment has fallen below a third. This slowdown follows years of large-scale investment that has given China a dominant position in all major cleantech supply chains. At the same time, it increases the relative importance of other regions as drivers of future investment.
While actual capital spending on manufacturing and industrial sites is declining, announced investments show a different picture. Their value increases by 10%, or $4.2 billion, in the first quarter of 2026 compared to the fourth quarter of 2025, then stabilizes in the second. This breaks a series of four consecutive quarters of decline in announced investments and provides a preliminary signal that actual investments may increase in the coming quarters.
Solar equipment manufacturing accounted for much of the decline in manufacturing investment, with investment falling 39% in the first half of 2026 compared to the last six months of 2025. This continues a series of quarterly declines since a peak in the fourth quarter of 2023. By the second quarter of 2026, investment had fallen by $21.6 billion, or 83%, to $4.2 billion. China accounted for 94% of this decline, while India's share of global investment rose from 5% to 48%, making it the largest source of investment over the past four quarters. Announced investments in solar production more than doubled in the first half of 2026 compared to the second half of 2025, but remain 32% below the level of the same period in 2025.
Investments in battery production also decreased — by 13% in the first quarter of 2026 compared to the previous one and by another 6% in the second. Meanwhile, announced investments in batteries stabilized at levels similar to those of the second half of 2025. Projects announced in India, Southeast Asia, the Middle East and other emerging markets could expand the geographical scope of production. Newly announced European battery electroactive materials companies could help diversify global upstream supply.
New investments in critical minerals are up for a third consecutive quarter, up 50% from their lowest level since mid-2025. The main new investments announced in the first half of 2026 are focused on lithium and graphite. The largest announced lithium projects are in Argentina, France, China and the US, while graphite investments include projects in Canada, China, Malaysia and Malawi. These plans demonstrate continued efforts to diversify mineral supply chains, although the projects are at different stages of development.
Investment in sustainable aviation fuel facilities declined by about 5% quarter-on-quarter in both the first and second quarters of 2026. By the second quarter, they were less than half of their peak level at the beginning of 2024. However, sustainable aviation fuels were the largest contributor to announced manufacturing and industrial investments in the first half of 2026. The newly announced projects cover a wide range of markets and production technologies, suggesting that the global supply of such fuels could expand and diversify if the projects are implemented.
These developments come at a time when governments are reassessing their support for clean technologies, their trade policies, and their supply chain strategies. The decline in green investment in China is particularly telling. It combines a correction after an investment boom, a change in government support, and deteriorating profitability.