The ClimateTech Policy Coalition’s 2024 Report

A new report published by the ClimateTech Policy Coalition, of which Startup Coalition is part, has today called for the Labour Government to put innovation at the heart of its climate agenda. The Coalition brings together academia, investors and startup founders to build a policy agenda that accelerates the use of technology to mitigate climate change. Today’s report is their third annual intervention, and the first under the new Government.

As part of this year’s report, the Coalition interviewed and surveyed founders of some of the UK’s leading ClimateTech startups. They found that there was initially significant support for Labour in the wake of their General Election victory back in July 2024. 38 out of 59 ClimateTech founders surveyed by the Coalition said that Labour’s victory was “quite good” or “very good” for their business. Founders were also very pleased with the Labour Government’s support for foundational investment incentives. The continuation of EIS, SEIS and VCT Incentives announced in September was the most popular policy among founders, with 43 out of 59 viewing it as a good thing.

Founders were interested in some of the Government’s early priorities: four in ten founders believe that GB Energy could be good for their business, and half believe that the industrial strategy will be beneficial for them.

Founders that the Coalition spoke with and surveyed were underwhelmed, however, with how Labour’s first five months in power had gone. Only 11 said that the first five months of the Labour Government had been a good thing for their business, and 14 founders viewed the first five months of their administration as bad for their business.

To remedy this concern, and maximise the opportunity for ClimateTech startups to accelerate the net zero transition and contribute towards the economic growth of the UK, the ClimateTech Policy Coalition outlines three core areas for the Government to focus on.

Firstly, the Industrial Strategy must provide an enabling framework for ClimateTech innovation, supporting first-of-a-kind technologies to scale, with specific support from the National Wealth Fund. Secondly, the early climate policy priorities of the Labour Government must have innovation at their heart, starting with GB Energy and the Warm Homes Plan. Finally, the Coalition call for the Government to focus on “low-hanging fruit” – low cost opportunities to unlock ClimateTech innovation through regulatory reform, innovation sandboxes, and cutting red tape.

Key findings 

Most Climate founders believe that Labour’s election victory was a good thing for their business: 38 out of 59 ClimateTech founders we surveyed said it was “quite good” or “very good” for their business, with only 5 saying it was a bad thing for their business.

They are less positive about how things have gone, however: only 11 said that the first five months of the Labour Government had been a good thing for their business, and 14 founders viewed the first five months of their administration as bad for their business.

The Budget was particularly unpopular among founders we surveyed, with 24 of the founders responding that the Budget was “quite bad” or “very bad” for their business.

17 Founders also reported that they are being more cautious about hiring since the election.

The continuation of EIS, SEIS and VCT Incentives was the most popular policy among survey respondents, with 43 out of 59 viewing it as a good thing.