China and the 'industrial solar belt' overtake Europe in the race for clean industry

China is concentrating clean industry at home

Europe, despite years of investment and climate commitments, is falling behind in the race for clean industry: this is the conclusion reached by the non-profit organization Mission Possible Partnership (MPP), which works on decarbonizing energy-intensive sectors, in a new study reported by Euronews. Over the past year, a record 36 large clean industrial projects worldwide secured the necessary financing, and 23 of them were in China — their combined value exceeds 40 billion euros. China's share is not limited to new deals: it accounts for 49% of all clean industrial facilities already operating or under construction worldwide.

What exactly China dominates in

MPP attributes China's expansion to years of supportive policy, renewable energy infrastructure, and growing demand for alternative fuels. Today the country accounts for more than 90% of global capacity for producing lower-emission methanol and more than 40% of capacity for producing cleaner aluminium made with low-carbon electricity. China's presence is also noticeable beyond its borders: in August 2025, Monsoon Wind, the largest wind farm in Southeast Asia, began operating in Laos; it is owned by a Thailand-led consortium and uses 133 Chinese-made turbines to supply electricity to Vietnam's industry. Belinda Schäpe of the Centre for Research on Energy and Clean Air (CREA) notes that as countries seek to reduce fossil fuel imports, China is becoming a key supplier of clean technologies, which 'creates significant economic opportunities for China and could strengthen its geopolitical influence, especially in developing economies.'

The 'industrial solar belt' overtakes Europe for the first time

China is not the only success story. Countries in Africa, Asia and Latin America, which MPP calls the 'industrial solar belt,' are attracting investment thanks to their abundance of renewable resources. Over the past year, six projects in developing economies received 4.7 billion euros — more than the 4.3 billion euros of deals in developed countries. Examples include: Africa's first geothermal-powered 'green' fertilizer plant in Kenya's Rift Valley (planned at 200,000–300,000 tonnes per year, mainly for local farmers), financing for a greener fertilizer plant in Paraguay, and the world's second commercial project for synthetic sustainable aviation fuel (SAF) made from captured CO2 and renewable electricity in South Africa. Another 281 projects in developing economies are in development. 'This year, the new industrial solar belt overtook Europe for the first time, turning clean industry plans into financed plants,' says Faustine Delasalle, CEO of MPP.

What Europe is trying to do

The EU is trying not to lose momentum: in February 2025 the bloc launched the Clean Industrial Deal with a promise to mobilize more than 100 billion euros to support European clean manufacturing, reduce energy costs, and decarbonize steel and chemicals. Lawmakers are now discussing the Industrial Accelerator Act, which is meant to speed up approval of new plants and boost demand for European low-carbon products. European policy has also stimulated investment in SAF, which accounted for one in three clean industrial investment projects worldwide over the past year: since 2025, fuel suppliers at EU airports are required to provide at least 2% SAF in aviation fuel.

Does Europe still have advantages?

Schäpe points out that 'Europe and the US still hold significant industrial and technological advantages': according to a recent Ember report she cites, Europe is already able to produce roughly twice as many electric vehicles and wind turbines as are needed annually, and almost three times as many heat pumps. And according to the latest CREA research, although China exports more electric vehicles overall, the combined value of exports from other countries — especially Germany — has grown far faster than China's. Investment remains the main obstacle worldwide: MPP is tracking more than 800 proposed projects worth around €4.3 trillion in potential investment that have not yet secured financing — often due to unclear policy or customers' reluctance to sign long-term purchase agreements. 'What matters now is scale and speed,' Delasalle stresses: the industry must move 'from dozens to hundreds of financed plants per year.'