New ‘Industrial Sunbelt’ Set To Overtake The World’s Biggest Economies In Clean Industry Race

China remains the frontrunner in clean industry development, securing a quarter of the $250 billion of investment in clean plants to date, closely followed by the US at 22% and the EU at 14%. But a bloc of emerging markets including India, Egypt and Brazil, part of the ‘new industrial sunbelt’, is quickly catching up to countries with historic industrial bases, according to new data from the Global Project Trackera and accompanying report published today by Mission Possible Partnership (MPP).

The ‘big three’ industrial leaders may soon be overtaken by a host of newly industrialising countries capitalising on favourable conditions for renewable energy production and building momentum in sectors at the forefront of a new clean industrial revolution. This shift points to a potential industrial realignment, as the production of materials, chemicals and fuels moves across geographies and new trade corridors emerge. At the heart of this shift is the industrial sunbelt, a region spanning Africa, Asia and South America where abundant natural resources are being harnessed to provide solar energy and supportive policy environments and cost advantages combine to create ideal conditions for new industrial processes.

Industrial sunbelt countries, such as Indonesia and Morocco, have secured a fifth of investment in clean industrial plants to date. However, a $948 billion investment opportunity exists for their announced projects, particularly as economies dominated by agriculture increasingly see lower-cost clean ammonia for fertiliser as both an economic opportunity and a chance to build increased food security. 

The new report, Clean Industry: Transformational Trends, by MPP and supported by the Industrial Transition Accelerator (ITA) – global alliances focused on advancing clean industry transformation – shows a global $1.6 trillion pipeline of projects announced but not yet financed. Industrial sunbelt countries account for 59% of this investment pipeline, compared to18% for the US, 10% for the EU, and just 6% for China. Projects span key sectors, including aluminium, chemicals, cement, aviation and steel.

In total, a record 826 commercial-scale clean industrial plants across 69 countries are logged in the MPP Global Project Tracker. The growth in this third edition of the Global Project Tracker underscores that companies around the world are continuing to capitalise on clean industrial projects and tap into nascent markets despite ongoing geopolitical and economic uncertainty.