Image: Cornish lithium exploration at Gwennap | Credit: Neil Williams
Despite global economic headwinds such as inflation, rising interest rates, and geopolitical tensions, the UK maintains its leading position in the clean tech market, with venture capital investment hitting £2.6 billion last year. The latest report from the Cleantech for UK initiative highlights this resilience amidst adversity, emphasizing the sector's endurance and commitment.
While this figure matches the investment levels for 2021, it falls just short of the record-breaking £2.8 billion attained in 2022.
Nonetheless, amid the unpredictable terrain of global economics, Cleantech for the UK hails these investment levels as a testament to the unwavering commitment and fortitude of the Cleantech community.
According to the report, the energy and power sector emerged as a dominant force in the clean tech landscape, securing over £1 billion in investment in 2023, a substantial increase from £680 million in the previous year. Noteworthy investments in the power sector include Octopus Energy, PragmatIC, Infogrid, TopHat, and Cornish Lithium, underscoring the sector's vitality and potential.
However, amidst the progress, concerns loom over political uncertainty, particularly in light of the impending General Election. The absence of definitive policy actions and conflicting climate commitments from political parties have sowed confusion among investors and stakeholders. Notable decisions such as approving a new coal mine and licensing new oil and gas production in the North Sea have further rattled investor confidence.
To reignite clean tech investment momentum, Cleantech for UK advocates for decisive actions from the government, including increased public funding to attract private investors, innovative financing mechanisms, and streamlined application processes for financial products. Additionally, the report calls for agile regulatory frameworks to accommodate emerging technologies and facilitate rapid market integration.
The report argues that "by fostering regulatory flexibility and collaboration among policymakers, industry stakeholders, and innovators, we can rapidly adopt and scale clean tech solutions, driving our transition to a sustainable economy."
Launched last year, Cleantech for the UK, backed by notable entities such as Bill Gates's Breakthrough Energy investment vehicle and Cleantech Group, aims to galvanize support for the burgeoning clean tech sector in the UK, with a focus on innovation, investment, and collaboration.