The government is launching a new effort to support green start-up companies across the UK, joint-funding a £40 million venture capital fund to supercharge the development of next generation clean, low-carbon technologies.
The Clean Growth Fund will contribute towards the UK’s plans to reach Net Zero by 2050 and will be accessible to UK-based companies driving green technology across the power, transport, waste, and building energy efficiency sectors. Potential examples of projects the fund could support include:
- energy storage and smart grid systems to bolster resilience in the power system
- renewable heating and ventilation technologies across homes and commercial buildings
- bio-fuels and bio-energy systems
With £20 million of government investment matched pound for pound by CCLA, one of the UK’s largest charity fund managers, the fund could reach £100 million by Autumn 2021 through private sector fundraising.
The emphasis is on new innovations that are proven / semi-proven.
CGF invests in technology businesses that are driving the transition to net zero through developing disruptive products and services.
The clean growth sector includes innovations that can improve the resource efficiency of industry and commerce, while reducing greenhouse gas emissions, pollution or other adverse environmental impacts and also deliver substantial financial returns.
Within these sectors, CGF will invest across the technology spectrum, including hardware, software, process systems, materials, deep tech and business model innovations, capable of driving real and rapid change on a global scale.
The Fund’s core focus will be into companies with outstanding management teams which have a pilot or alpha prototype that successfully demonstrates the technical feasibility of their product or service alongside compelling evidence of market traction and engagement.