China's subsidy shift drives 17% drop in global clean tech investment

Global investment in clean technologies fell by 17% during the first half of the year, primarily driven by a significant decline in China. According to a report by the Rhodium Group, China is transitioning from a subsidy-based model to market-based pricing for renewable energy projects, which has pressured new investments.

China’s investment in electric transport and sustainable energy dropped by 49%, amounting to a loss of approximately $133 billion (€114 billion). This shift has reduced China’s share of total global clean tech investment from 52% at the end of 2025 to 39% by June of this year. Additionally, the Chinese government began phasing out tax exemptions for electric vehicle buyers.

While China’s pullback offset global gains, investments in wind, solar, and clean technologies increased in Europe and India. The European Union is reportedly increasing subsidies to support its net-zero agenda, while India continues to expand its capacity in solar, wind, and electric vehicles.