Carbon funding gaps and a lack of commercial roadmap risk blocking the path to net zero.
Overall, the climate tech sector in the UK has shown resilience and growth over the past 12 months. Investments totalled £4.5billion in 2024 alone, with early-stage financing increasing to 10% and the country’s overall reindustrialisation strategy heavily reliant on this are of innovation.
However, much of the technology involved in current roadmaps has not reached ‘commercial maturity’ and there are significant differences between sectors. Buildings and heavy industry, for example, are lagging far behind transport. PwC’s New Zero Future50 report, which was published yesterday, highlights this positive shift towards more extensive and impactful investment in the climate tech sector since 2015. During ths time finance has increased it growth rate from 1% to 10%.
‘While technology alone can’t solve the climate crisis, climate tech and innovation are essential to drive forward the net zero agenda,’ James Pincus, corporate finance partner at PwC UK. ‘The recent growth in UK climate tech investment is encouraging, but we must continue to identify and invest in innovative solutions, seek increased government support and focus investor attention across a broader range of sectors, especially where decarbonisation is more challenging. The current emphasis on established technologies and short-term profits has led to a ‘Carbon Funding Gap,’ across many high emission sectors.’
Image: Skye Studios / Unsplash
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