Global cleantech investment fell in first half on slowing China momentum

• Solar manufacturing investment fell sharply by 62% to $8.8 billion due to overcapacity issues, while solar power generation investment dropped 33% in the first half
• China's decline was partly due to frontloading of investments in early 2025 ahead of policy changes, bringing first-half 2026 investment roughly back to 2024 levels of $762 billion
• Regional investment patterns are shifting as other markets like India play a growing role in solar manufacturing, with announced manufacturing investment showing signs of potential recovery in coming quarters

Summary: Global Cleantech Investment Declines 17% in H1 2026

Key Findings:

Global cleantech investment dropped 17% to $770 billion in the first half of 2026, according to Rhodium Group. This decline was primarily driven by China, the world's largest cleantech investor, where policy transitions pressured renewable power investments. Much of the decrease reflected frontloading of investments in H1 2025 ahead of anticipated policy changes.

Sector Performance:

Solar manufacturing experienced the sharpest downturn, plummeting 62% to $8.8 billion during January-June, amid persistent overcapacity issues. Solar power generation investment fell 33% in the same period.

Regional Dynamics:

While China's cleantech spending declined, the U.S., Europe, and India showed stable or rising investment in solar and wind projects across power, transport, manufacturing, and industrial sectors. India notably increased its share of global solar manufacturing investment, indicating a geographic shift in the industry.

Hannah Pitt, Rhodium's energy and climate practice director, noted that non-Chinese regions are playing a growing role in driving global investment, though they remain comparatively more exposed to oil and gas price fluctuations. The potential impact of Iran war-related energy concerns on investment growth remains unclear.

Market Context:

The decline brings H1 2026 investment levels roughly in line with H1 2024, which recorded $762 billion. However, there are positive signals ahead: announced manufacturing and industrial investment increased quarter-on-quarter in Q1 2026 and remained steady in Q2, suggesting potential recovery in coming quarters.

The report highlights an ongoing transition in cleantech investment patterns, with manufacturing capacity shifting away from China toward other emerging markets.