Global clean energy investment fell 17% in the first half of 2026, with a sharp pullback in China emerging as the major driver of the decline, according to a new report by Rhodium Group. The drop highlights growing pressure on the global transition to renewable energy as major economies reassess subsidies, pricing policies and investment priorities across the clean technology sector.
China, the world’s largest clean technology investor, recorded a particularly steep decline after moving away from heavy government support toward a more market-based approach. Investment in alternative energy and electric transport plunged 49% to $133 billion, cutting China’s share of global clean technology investment from 52% at the end of 2025 to 39% by June 2026.
The slowdown followed policy changes introduced by Beijing, including the transition to market-based pricing for new renewable power generation and the gradual phase-out of electric vehicle purchase-tax exemptions from January 2026. The shift triggered a rush of renewable installations ahead of the pricing deadline, followed by a more uneven investment environment that has weighed on new projects.
Despite China’s pullback, clean technology investment increased in India and Europe during the period. India continues to expand its wind, solar and electric vehicle industries as it closes the gap with China, while the European Union has maintained strong financial support for technologies linked to its net-zero ambitions. However, gains in these markets were not enough to offset the scale of China’s decline.
The latest figures come as governments around the world balance climate goals with energy security, trade concerns and changing supply chains. Rising hydrocarbon costs are also influencing investment decisions, even as some countries accelerate solar and other renewable projects to reduce dependence on natural gas. The global clean energy market therefore enters the second half of 2026 facing a crucial test: whether growing investment outside China can regain momentum and keep the energy transition on track.
source: oilprice
