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Investment in clean technology manufacturing facilities is falling worldwide, despite global demand for clean technologies growing rapidly. Our new piece joint @Bruegel_org @rhodium_group unpacks the important trends. A thread / 4. 👇
Most of the global investment drop relates to China, where investment in 2025 was down nearly 70 percent from a peak in 2023. Since 2024, policy has tried to reign in (particularly solar) overcapacity. China already has large capacity & this cut is not a cause for concern.
The US situation is more concerning. Declining investment is driven by policy, esp. the dismantling under President Trump of the 2022 Inflation Reduction Act (IRA), which provided clean-tech subsidies. Battery project cancellations outpace fresh announcements since 2025.
European investment has remained stable, though EV investment has slowed because of weaker than expected demand growth, partly driven by a European Commission proposal to reduce to 90 percent a goal for zero-emission passenger vehicles to comprise 100% of new sales in 2035.
Please find the piece available to read here: <a target="_blank" href="https://www.bruegel.org/analysis/understanding-global-clean-tech-manufacturing-slowdown" color="blue">bruegel.org/analysis/under…</a> @BenBjerkanWade @Tagliapietra_S @keliauskaite