Global Clean Investment Drops as China Reduces Subsidies
Investment in clean technologies fell globally by 17% during the first half of 2026, primarily due to a sharp decline from China. The Rhodium Group report attributes this drop to China's shift away from subsidies toward market-based pricing for renewable energy and electric vehicles (EVs). This policy change led to an initial surge in installations before a significant pullback occurred after January 2026 when EV purchase-tax exemptions were phased out. China’s investment in clean tech dropped by $133 billion, or 49%, reducing its global market share from 52% at the end of 2025 to 39% as of June 2026. While India and Europe saw increases in their investments, they were not enough to offset China’s decline due to Beijing's dominant position in clean tech funding. The report highlights a broader trend where governments are reevaluating support for clean technologies amid rising energy costs and shifting priorities toward energy security. Some countries have pledged growth in solar power as gas prices rise, but overall investment remains constrained by tighter hydrocarbon supplies.
Topics: China policy shift clean technology investment trends renewable energy