Investment into UK climate tech startups is on course to double in 2022 compared to last year, according to a new report.
Tech Nation’s Climate Tech Report 2022 found that investment in UK climate tech is rapidly growing and is expected to buck the trend of a wider tech investment downturn.
UK climate tech investment has already reached $7.5bn (£6.54bn) in 2022, compared to the $4bn (£3.48bn) the year prior. The UK is also, according to the report, on track to see climate tech firms raise around $20bn (£17.4bn) a year by 2030.
It means the UK is now second only to the US for the number of firms addressing the climate crisis, and while US climate tech investments are slowing down, much like in Germany and Sweden, the UK is growing.
“If we are to achieve net zero, it is vital that all state and non-state actors invest and support the growth of new climate technologies,” said Gerard Grech, chief executive at Tech Nation
“With investment into UK climate tech companies almost doubling since last year the growth of the sector is promising, but we must do more.”
Sammy Fry, net zero lead at Tech Nation, added: “The outsized role technology must play in tackling the climate crisis is undeniable.
“There has never been a more crucial time to take action, and while we should be encouraged by the immense growth of the UK’s climate tech sector – along with the high carbon reduction potential of climate tech companies and the resilience of the sector in the midst of difficult economic times – this is certainly no time to be complacent.”
The report noted that the UK’s climate tech ambitions remain dependent on government policy and could therefore be hurt by the country’s limited investment in R&D.
Some of Britain’s most valuable climate tech firms include Octopus Energy, Newcleo, ITM Power, and OVO Energy.
Speaking at the Green Trade and Investment Expo this week, International Trade Secretary Kemi Badenoch said that the UK must invest in green tech as a way to “future-proof” the economy.