The quantity of funding secured by the UK’s cleantech sector hit a brand new excessive of £134bn in 2021, which is 4.4% greater than the earlier report set in 2018, analysis has proven.
In a report, compiled by analysis and improvement tax credit score funding specialist GovGrant, the UK is hailed as a “main nation” within the discipline of cleantech, which is a time period used to explain applied sciences designed to enhance the surroundings.
The analysis intends to shine a lightweight on how a lot funding the UK’s cleantech sector receives in contrast with the remainder of Europe, and suggests the UK usually receives round 18% of the full quantity invested on this market. “With over half of [the] whole funding in cleantech going to energy-related corporations, the UK is a key driver for the way forward for international environmental and sustainable vitality sources,” mentioned GovGrant in a press release.
The lookback interval for the report begins firstly of the yr 2000, and in its scope are any UK corporations which are concerned within the improvement of a variety of inexperienced applied sciences, together with these concentrating on decarbonisation and renewable vitality technology, for instance.
The report states there are 8,500 green-tech companies based mostly in Europe, and slightly below 2,000 of them are based mostly within the UK. Inside the continent these organisations have collectively secured £444.83bn of funding, and the UK is accountable for £80.95bn of this whole.
The inexperienced tech sector that has attracted essentially the most funding within the UK is vitality manufacturing (£20.16bn), adopted by vitality property, reminiscent of wind and photo voltaic farms (£17.99bn), environmental providers (£9.93bn), water utilities (£7.59bn) and various vitality gear (£3.44bn).
“Power-focused industries make up three of the highest 5 UK sectors by way of cleantech and local weather tech funding,” the assertion mentioned. “Collectively, they’ve benefitted from over £41.5bn in monetary assist because the flip of the century.”
The report additionally shines a lightweight on how funding in cleantech has modified since 2002, with its information revealing there was a 2,384% international enhance within the sum of money invested on this sector up to now 20 years.
“This century, 3.07% of whole capital invested worldwide has gone into local weather change options,” the assertion mentioned. “The share is even greater in Europe: 4%. Within the UK, it sits barely decrease at 2.44%.”
Adam Simmonds, funding analysis analyst at GovGrant, mentioned – given the urgency with which the local weather disaster wants addressing – it’s unsurprising that funding in cleantech is on the rise.
“The power of the sector within the UK can be actually pleasing,” mentioned Simmonds. “Clearly, our cleantech sector, helped by tax credit, is flourishing. It’s going to be thrilling to see the place the trade goes and what rising funding can do for the way forward for the planet.”
Tom Mason, CEO at clear vitality startup Bramble Power, mentioned the quantity of funding being poured into cleantech is indicative of how the dialog round sustainability and local weather change is evolving.
“With the intense social strain that has been constructing over the previous few years for change round our affect on the planet and a concentrate on the necessity for clear air and sustainable selections, politics has needed to hear, and we’re lastly beginning to see a shift in rhetoric in the direction of clear energies and the way vital their function will probably be within the combat towards local weather change,” he mentioned.
“Regulatory strikes seeking to limit fossil gas utilization are beginning to be put in movement, and are solely more likely to develop with trade on the lookout for matured vitality applied sciences that may work with their wants. The good factor is the UK is already uniquely positioned with its renewable sources, notably wind to ship a secure clear vitality marketplace for years to come back.”
Nonetheless, David Hunt, founder and CEO of world cleantech sector expertise acquisition agency Hyperion Government Search, mentioned that whereas the sum of money being invested in cleantech is rightly on the rise, the sector is amid a expertise scarcity that might hamper its progress going ahead.
“The biggest barrier to progress the sector is dealing with no matter funding is the expertise scarcity,” he mentioned. “Employees are on the coronary heart of the clear vitality transition as employment within the vitality sector is about to extend to 100 million by 2050. With out the folks to truly drive the transition ahead, long-term ambitions can’t be realised.”