Key Points
- 01China secured about $45 billion for clean industrial plants in 2026
- 02China accounts for nearly half of global clean industry plants in operation or under construction
- 03A record 36 clean industrial projects reached final investment decision in the past year
- 04Global clean industry pipeline would need power equal to 12% of current demand
China’s dominant role in 2026 clean industry investment
China secured $45 billion in investment in clean industries in 2026, making it the largest destination for financing in this area. It now accounts for 49% of all clean industrial plants currently operating or under construction worldwide. These plants span energy-intensive sectors aiming to cut emissions, such as lower-carbon cement and steel, clean methanol production, sustainable aviation fuel and aluminium smelting using greener energy sources.
Over the past 12 months, a record 36 commercial-scale industrial decarbonisation projects worldwide reached final investment decisions. China accounted for 23 of these plants, representing nearly two thirds of the new global final investment decisions and securing the bulk of associated financing. Developed economies and emerging markets outside China also saw new projects approved, but with much smaller aggregate investment values.
Project pipeline and sector breakdown
MPP's Global Project Tracker shows 189 commercial-scale industrial decarbonisation projects are financed or built worldwide, including 93 in China.
Sustainable aviation fuel, methanol and clean ammonia have been the leading sectors for new final investment decisions over the last year. China now accounts for over 90% of global clean methanol production capacity and over 40% of clean aluminium capacity. In China’s aluminium sector, 17 smelters are operating using renewable power and a further two are under construction, reflecting efforts to lower emissions in highly energy-intensive processes.
Emerging sunbelt and developed economies
Alongside China, renewables-rich emerging markets and developing economies across a new industrial "sunbelt" attracted $5.3 billion of investment across six large-scale clean industrial facilities in the last 12 months. Two new facilities in Kenya and Paraguay will produce fertiliser for a mix of domestic and export markets. Developed economies secured $4.8 billion of investment for six projects over the same period, underscoring a more modest pace compared with China.
China has deepened the transformation of its energy-intensive industries in 2026 by financing 23 new plants covering fuels, chemicals and metals. Policies such as the expansion of its Emissions Trading Scheme to include steel, cement and aluminium have supported the growth of its clean aluminium capacity, contributing to its leading position in several clean industrial segments.
Power demand and infrastructure constraints
MPP estimated the pipeline of announced clean industrial projects would require 3,500 terawatt-hours of electricity per year once built, equal to about 12% of current global power demand.
Clean industrial projects are competing for electricity supplies with the rapidly expanding data centre sector, and power grids are struggling to keep pace with rising demand. This dynamic adds an infrastructure challenge to the rapid growth in clean industrial investments, even as more projects move from the planning stage to construction around the world.
Key Takeaways
- 01China has emerged as the clear leader in clean industrial investment, capturing a large share of new projects and capacity in 2026.
- 02Global clean industry growth is concentrated in a few key sectors, notably sustainable fuels and low-carbon metals, with China holding major capacity shares.
- 03The scale of the clean industrial project pipeline implies a significant future call on renewable electricity and grid infrastructure worldwide.