A sharp decline in clean energy manufacturing spending reflects policy shifts in the US and economic slowdowns in China.
Global investment in clean energy manufacturing fell 42% as the US and China scaled back spending. The drop follows a peak in 2023, driven by policy uncertainty in the US and economic deceleration in China.
China’s retreat stems from oversupply and slower growth, while US hesitation reflects shifting political priorities under heightened uncertainty. The slowdown marks a reversal from previous expansion trends in the sector.
Markets have yet to react significantly, but the pullback signals potential long-term challenges for renewable energy adoption and supply chains.