Government launches £40m Clean Growth Fund to assist with net-zero vision

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.


Continue Reading

Login or register for unlimited FREE access.

Login Register

Government launches £40m Clean Growth Fund to assist with net-zero vision

The fund is seeking additional private sector investment

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).

Green recovery

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.

Matt Mace

© Faversham House Ltd 2022 edie news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.

Comments (1)

  1. Andy Kadir-Buxton says:

    Clean Electricity in Just Eight Years for Free

    The UK Conservative Government gives 10.5 billion in subsidies from our taxes to fossil fuel companies each year, which equates to 16,153,846 per constituency. With an average of 70,530 constituents in each constituency this works out as 229 generously donated by our caring government per person which leads to more CO2 and more pollution.

    The project cost of a 3.5 MW Enercon E126 EP 3 wind turbine costs 3.13 million, and if the subsidies were diverted to renewables we could have an extra wind farm of 5.16 wind turbines in every constituency every year, generating 18.06 MW per hour per year. 34.82 MW per hour is used by the average person in the UK per year, so our wind turbines would provide clean electricity to 8,766‬ more people in every constituency every year, in eight years every constituency would have clean electricity provided locally. Think Green. Think Clean.

Action inspires action. Stay ahead of the curve with sustainability and energy newsletters from edie

Subscribe