A new analysis from Sightline Climate, released with support from HSBC Innovation Banking, finds that the global center of gravity in climate tech is shifting decisively toward Europe and major emerging markets.
As the sector transitions from venture-backed experimentation to large-scale deployment, regions with stronger policy alignment, cheaper feedstocks, and coordinated infrastructure planning are pulling ahead.
The report, Globalization in Climate Tech, charts a rapid internationalization of capital and project build-out. While the US continues to lead in venture funding, its retreat from major public-funded climate programs is opening space for other regions to surge ahead.
Europe is on track to surpass the US in total climate-tech capital deployed, while India, Southeast Asia, Latin America, and the Middle East are scaling projects faster than many developed markets.
Europe’s Policy Engine and India’s Clean-Energy Breakthrough Lead the Shift
Sightline’s findings highlight Europe’s accelerating industrial transition. The region now accounts for 55% of global low-carbon cement capacity in development and 70% of projects under construction, driven by the EU carbon price and the forthcoming CBAM border-adjustment mechanism. Coordinated CO2 transport and storage networks are also creating the backbone for deep industrial decarbonization.
India emerges as the standout performer in emerging economies, ranking third worldwide in ammonia capacity (25 Mt/yr) and second in advanced nuclear (17 GW).wing deployment in wealthier nations.
Across the Global South, megaprojects are defining the next chapter of clean-energy industrialization.
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Saudi Arabia’s $500 billion NEOM project is reshaping regional energy systems; Chile, Oman, Kazakhstan, and Mauritania are racing to supply Europe with low-carbon ammonia; and Singapore and Latin America are converting waste streams, biomass, and interconnection programs into competitive supply chains.
Sightline argues that deployment success increasingly hinges on governance rather than technology. Regions with coordinated planning, whether Central America’s interconnection programs or Europe’s CO2 hubs, are capturing investment and accelerating commercialization.
“While policymakers are increasingly focused on growth and energy security, in many cases those goals align with climate,” said Kim Zou, Sightline CEO. “To many of these economies, security is more than just energy.”
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