Europe’s clean-tech market set to top $1 trillion by 2025, reshaping global industry
The global clean-technology market will exceed $1 trillion by 2025 and grow at roughly 20% a year, according to Bruegel’s Europe’s New Energy Industrial Atlas.
Source: Bruegel · July 24, 2026 at 11:01 PM · AI-assisted report
Opinion
KUALA LUMPUR, 25 JULY 2026 —
The global clean-technology market will exceed $1 trillion by 2025 and grow at roughly 20% a year, according to Bruegel’s Europe’s New Energy Industrial Atlas.
Market Impact
The Atlas maps how the energy transition is re-drawing industrial geography across Europe. It shows new comparative advantages emerging where countries can offer abundant, low-cost clean electricity, reshaping international value chains and manufacturing footprints.
Tax policy has shifted in Europe from anti-avoidance to competitiveness, Bruegel notes. The EU Tax Observatory’s new EU Tax Compass branch will inform policy choices on how to balance innovation incentives, revenue needs and fairness in the tax system.
“Today competitiveness is back atop the European agenda,” a Bruegel researcher said. The Commission’s recent initiatives and the Tax Compass will underpin the debate on whether Europe can fund public services while attracting capital.
GDPR consent pop-ups fail to inform consumers, Bruegel finds. A research project tested alternatives but none gave users meaningful information on the costs and benefits of sharing personal data. Proposed AI-related changes to consent have triggered controversy.
The Middle East conflict has pushed oil and commodity prices higher by disrupting output and trade through the Strait of Hormuz, Bruegel says. The shock raises production costs across value chains and increases volatility, leaving central banks to choose between tighter policy to fight inflation or looking through temporary supply disruptions.
Defence spending in Europe has jumped since Russia’s 2022 invasion of Ukraine, Bruegel records. Four years on, governments must now evaluate whether procurement choices, technological priorities and market structures deliver value for taxpayers.