The UK Government has unveiled a £40m Clean Growth Fund to support start-up companies in the fields of low-carbon power, waste, transport and buildings, with hopes that funding could rise to £100m by 2021.
The Clean Growth Fund has been launched with £20m of government investment matched by the same amount from charity fund manager CCLA. It is open to UK start-ups with low-carbon and sustainable solutions across key sectors, including power, waste management heating of buildings and transport.
Business Secretary, Alok Sharma, said: “The need for innovative and ambitious ideas across green industries has never been greater. I am pleased that with the help of this fund, promising clean growth start-ups will be able to step up to accelerate the UK’s recovery, while supporting our path to Net Zero by 2050.
“This pioneering new fund will enable innovative low-carbon solutions to be scaled up at speed, helping to drive a green and resilient economic recovery.”
The Fund has been set up to support the UK’s net-zero goal for 2050 and Government is seeking wider private sector investments. This could see the fund reach £100m by Autumn 2021. The fund will be managed by Clean Growth Investment Management LLP (CGIM).
At a time where discussions about a green recovery continue to take place at national levels, the fund is a welcome boost.
The UK Government can deliver an 85% increase in renewable and clean technology jobs in a decade by implementing better taxation systems and outlining a roadmap for net-zero emissions, according to the REA.
Research from RenewableUK has found that the net-zero target could deliver economic benefits to the UK by prioritising green technologies.
The UK could source 76% of its power demand from renewables by 2050, according to a new report from RenewableUK which claims that the nation’s net-zero target will spur rapid demand for green hydrogen while attracting more than £50bn to an already world-leading offshore wind sector.
A study from independent, not-for-profit Energy Systems Catapult also states that reaching net-zero emissions in the UK by 2050 is possible but would require “unprecedented innovation across the economy” that could see electricity generation triple, hydrogen generation grow exponentially and land use to be radically overhauled across the country.
Crucially, the study found that net-zero emissions can be reached at a cost of just 1-2% of national GDP, which was first highlighted by the Committee on Climate Change’s (CCCs) net-zero recommendation report that influenced the Government’s net-zero decision.