Warm Words on Climate Innovation Must be Matched With Investment

More than 120 climate innovators have signed Startup Coalition’s open letter to the Chancellor calling for the renewal of the £1bn Net Zero Innovation Portfolio, the Government’s flagship programme in technology to accelerate net zero that could be slashed at next week’s Spring Statement.

Introduced in 2020 ahead of COP26, the Net Zero Innovation Portfolio has invested over £1bn in innovative technologies over the last four years, from carbon removal and EV charge points to decarbonising Scotch Whisky production. Government figures suggest that the invested funds have supported nearly 4,000 jobs. Our new analysis has found that for every £1 of funding granted to climate entrepreneurs under the programme, around £2.40 has been secured in follow-on investment from the private sector.

Founders of some of the UK’s most successful climate entrepreneurs startups signed the letter to call for the Government to commit to further funding as a critical driver of sustainable growth.

The call comes as the scope of the National Wealth Fund, which was previously earmarked as a key vehicle for investment in the low carbon economy, looks set to be broadened to include more funding for defence.

NZIP funding is helping to build demand for low carbon technologies and catalyse investment from the private sector. Startup Coalition’s analysis suggests that between £200 and £300m of the total funds have been allocated to startups, returning £500m in private investment.

Read the open letter here, and the full briefing here.