UK companies attract nearly one fifth of Europe’s total investment in cleantech
17 May 2022
The UK has established itself as a leading nation in so-called ‘cleantech’ in a record year for the sector, claims IP and R&D tax credit experts GovGrant.
News of the success is accentuated by the fact that cleantech– products and processes designed to reduce negative environmental impacts – reported a record-high year for investment globally.
Last year this was up to £134 billion, some 4.4% higher than the previous record year, before the pandemic in 2018.
Research by GovGrant revealed UK cleantech attracts 18% of Europe’s total investment. And nearly almost a quarter (23%) of the 8,500 companies in Europe who create technology in renewable energy, decarbonisation, agricultural technology and related sectors come from the UK.
Energy-focused industries make up three of the top five UK sectors in terms of cleantech and climate tech funding. Collectively, they have benefitted from over £41.5 billion in financial support since the turn of the century says GovGrant.
The company compiled its investigation to discover which UK companies are attracting most funding for their green innovations.
Cleantech companies in energy production have the highest level of investment in the UK’s green technology landscape, benefitting from over £20.16 billion in investment since 2000. Second are energy asset cleantech companies including wind and solar farms receiving £17.99 billion. Alternative energy equipment companies such as manufacturers and providers of solar panels and hydroelectric equipment also rank in the top five, attracting £3.44 billion.
The firm said that there had been a 2,384% global increase in capital injected into cleantech companies since 2002. This century, 3.07% of total capital invested worldwide has gone into climate change solutions.The percentage is even higher in Europe: 4% although the UK is lower at 2.44%.
Energy-related industries also dominate cleantech investment around the world. Globally, energy-related companies receive over 43% of overall clean tech investment, with energy production receiving £305.4 billion since 2000.
Investment research analyst at GovGrant Adam Simmonds welcomed the news stating: “As climate change action becomes increasingly urgent, it’s no surprise that investment in cleantech is soaring. However, the level of growth is still remarkable.
“The strength of the sector in the UK is also really pleasing. Clearly, our cleantech sector, helped by tax credits, is flourishing. It’s going to be exciting to see where the industry goes and what rising investment can do for the future of the planet.”
However David Hunt, founder and CEO of global cleantech sector acquisition specialist Hyperion Executive Search said despite the encouraging news, concern remained over staffing.
“The largest barrier to progress the sector is facing regardless of investment is the talent shortage. Workers are at the heart of the clean energy transition as employment in the energy sector is set to increase to 100 million by 2050. Without the people to actually drive the transition forward, long-term ambitions can’t be realised."