Clean tech start-ups can now seek investment from a new £40 million public-private fund, backed by government and a major City institution.
The Clean Growth Fund aims to enable clean tech companies to access early stage funding, improving their chances of becoming commercially viable.
The department for business, energy and industrial strategy (Beis) will seed the fund with £20m, alongside £20m from CCLA, pensions manager for Britain’s local councils, charities and churches – many of whom have committed to ambitious net zero goals. With £10 billion in assets under management, the CCLA last year edged closer to divesting entirely from fossil fuels, launching its first fossil-free investment fund.
If the UK is to achieve net zero by 2050, business secretary Alok Sharma said the need for innovation “has never been greater,” adding that clean growth start ups would also “accelerate the UK’s recovery” from the Covid-19 recession.
The Clean Growth Fund now seeks other investment partners in order to create a £100m pot.
Beverley Gower-Jones will head the fund, contributing clean tech incubation experience gained at Shell and in private investment.
Assisting her will be experienced green growth investor Northstar Ventures. Michael Liebreich, founder of New Energy Finance, will also advise.