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Clean tech investment falls 17% in first half after China policy shift
China’s clean tech spending plunged 49%, falling to $133 billion, as subsidies were replaced by market based pricing and new EV tax exemptions were phased out starting January 2026.
Clean technology investment fell 17% over the first half of the year, according to a Rhodium Group report cited by OilPrice and Reuters, as China moved away from subsidies toward a more market based approach.
The decline was driven by China, the world’s largest cleantech investor, where the shift to market based pricing pressured new renewable power projects. Investments in areas such as wind and solar rose elsewhere, but they were not enough to offset China’s drop.
Rhodium’s findings say alternative energy and electric transport investment in China sank 49%, translating into $133 billion. The report also notes that China’s clean tech share slipped from 52% at the end of 2025 to 39% by June.
The report attributes part of the slowdown to policy changes, including a transition toward market based pricing for new renewable generation in 2025 that sparked a rush of installations ahead of a deadline, followed by an uneven pullback. It also points to the phasing out of consumer EV purchase tax exemptions starting January 2026.
Outside China, clean tech investment increased in India and Europe. OilPrice notes India is still catching up with China on wind, solar and EVs, while the European Union is expanding subsidies for transition related technologies under its net zero first agenda.