Germany is losing its attractiveness for green industrial investments as Hungary and Spain lead Europe’s clean tech race. New Bruegel data shows Germany attracted €27.5bn in completed and ongoing clean tech investments since 2017, far ahead of France’s €6.1bn, but has fallen to third place since 2021. Hungary and Spain now lead with €16.5bn and €10bn respectively.

Key factors include abundant cheap clean energy in Spain and Hungary, surging German energy prices post-Ukraine invasion, and openness to Chinese capital—evidenced by CATL plants in Debrecen and Zaragoza. Volkswagen’s Power Co chose a €3bn battery facility in Valencia over Germany. Despite renewables generating 30% of Europe’s electricity in 2025, the EU must double electrification in heating, transport, and industry to reach 46% by 2040.

Sweden and Portugal also stand to benefit from shifting industrial landscapes as carbon pricing rises.