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Government to contribute half of initial £40 million
fund pot together with one of the UK’s largest charity
investors, CCLA to be managed by Clean Growth Investment
Management (CGIM)
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Fund could reach £100 million by next year with
additional private sector investment
The government is launching a new effort to support green
start-up companies across the UK, joint-funding a £40 million
venture capital fund to supercharge the development of next
generation clean, low-carbon technologies.
The Clean Growth Fund will contribute towards the UK’s plans to
reach Net Zero by 2050 and will be accessible to UK-based
companies driving green technology across the power, transport,
waste, and building energy efficiency sectors. Potential examples
of projects the fund could support include:
- energy storage and smart grid systems to bolster resilience
in the power system
- renewable heating and ventilation technologies across homes
and commercial buildings
- bio-fuels and bio-energy systems
With £20 million of government investment matched pound for pound
by CCLA, one of the UK’s largest charity fund managers, the fund
could reach £100 million by Autumn 2021 through private sector
fundraising.
Business Secretary, , 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 CCLA’s Chief
Investment Officer said:
We decided it was time for CCLA to invest in the very best
early stage technologies to support the UK Net Zero objective.
In partnership with BEIS,
we have developed a solution, the Clean Growth Fund. Through
the Clean Growth Fund, we now look forward to working with
other investors to support these exciting young UK companies
aiming to reduce carbon emissions.
The Fund is seeking to make investments at early stage, seed or
Series A rounds in exciting, innovative clean growth start-ups.
The fund will invest in businesses with a prototype product or
service demonstrating a clear contribution to reducing greenhouse
gases together with compelling evidence of market demand. It will
be managed by Clean Growth Investment Management LLP
(CGIM).
Beverley Gower Jones, Managing Partner of CGIM, said:
The Clean Growth Fund is a significant boost to the country’s
low carbon sector and is a clear signal from the UK Government
that new and innovative technologies will be crucial to deliver
Net Zero and the clean growth agenda. We want to hear from the
very best clean technology businesses from across the UK.
The Fund is now seeking wider private sector investment and will
aim to balance its portfolio across clean growth sectors.
Investment parameters for the Fund focus on clean growth
technologies, hardware, products and services in sectors
including power generation, waste, energy networks, buildings
management, industries, bioenergy and alternative fuels.
Notes to editors
