Global renewable energy funding drops 21% from peak

Offshore wind contractions slowed worldwide totals, though solar installations across Africa and China continue expanding.

Global investment in renewable energy reached $327.5 billion in the first half of 2026, marking a 21% decline from its peak in 2024.¹ The total remained roughly flat compared to the previous six months, reflecting a plateau in capital deployment across clean energy sectors after several years of rapid post-pandemic expansion.¹

The downturn across recent years was driven primarily by a sharp contraction in offshore wind projects, according to data published by BloombergNEF.¹ Rising capital costs, supply-chain constraints, and lengthy permitting cycles have slowed offshore wind deployments worldwide, leading developers to delay or cancel major capital commitments.

Solar remains the primary growth driver

Despite the broader stagnation across the sector, solar power captured the largest share of renewable financing during the opening half of 2026.¹ Capital allocators and state utilities directed funds toward photovoltaic systems, which offer shorter build cycles and lower project complexity relative to large-scale marine turbines.

The sustained momentum in solar deployment comes as governments seek domestic energy security. National planning authorities have accelerated solar procurement to hedge against potential disruptions in fossil fuel supplies caused by international conflicts.¹ The push to lock in predictable generation capacity has kept solar project pipelines active across both emerging and developed markets.

Regional shifts in capital allocation

Africa is projected to achieve a record volume of solar installations in 2026, according to research from the energy think tank Ember.¹ Grid-connected arrays and distributed mini-grid installations have expanded across multiple African economies, supported by utility tenders and industrial demand for independent power generation.

China maintained its position as the largest single destination for renewable energy capital in the first half of 2026.¹ However, its share of international investment has decreased significantly over the past four years. China currently accounts for 25% of global renewable energy spending, compared to more than 50% of the worldwide total in 2022.¹

The contraction in China's global share reflects both the maturation of its domestic renewable capacity and increased spending by other regional markets seeking to diversify their power grids.

Reporting note: this piece draws on research published by BloombergNEF and Ember, reported by Semafor on August 27, 2026.

Source: Semafor, August 27, 2026.

References

This article is based on 1 source, listed in the order they are cited.

1. 1 EP Eugenia Perozo announcement · 27 Aug 2026 Renewables investment stagnates, but solar boom continues See the source