The UK has been ranked fourth in Europe for green tech innovation, according to a study of the European clean energy sector.
The research placed the UK behind Germany, which topped the list, followed by Sweden. France and the Netherlands were placed in joint third according to the model, which analysed investments and patents.
The study, conducted by sustainable consumer goods firm Bower Collective, found that just under four in 10 green startups in the UK are working towards affordable and clean energy.
It also noted that the UK has issued the third most green technology patents in Europe at 1,066.
Bower Collective reported an average of around €1.3bn per country having been invested into green tech startups since 2018.
However, the top nations for green tech investments were significantly higher. Sweden has seen the most funding, raising a total of €7.6bn.
“Overall, it is heartening to see significant capital coming in to support businesses focused on creating a more sustainable future,” said Nick Torday, co-founder of Bower Collective.
“The UK is in the top five and we certainly see lots of opportunity and innovation happening in our space, with increasing appetite from investors to prioritise impact as one of their key investment criteria.”
The UK has been working towards net-zero carbon emissions by 2050. The Department for Business, Energy, and Industrial Strategy published the plan last year, which included investments into non-carbon energy tech.
Since then, more and more startups in the UK have been working towards innovative methods of decarbonisation.
However, data shows that UK energy tech startups are struggling to scale and attract later-stage investment compared to other areas, such as fintech and AI.