New data shows that Britain is now a leading nation in cleantech after a record-high year for global investment in clean technologies.

Around £134 billion was injected into the sector in 2021 – 4.4% higher than the previous record year of 2018.

The report found that UK cleantech attracts 18% of Europe’s investment in clean technologies. Additionally, nearly one-quarter (23%) of the 8,500 companies in the EU who create renewable energy tech, decarbonisation, agricultural tech, and related sectors come from the UK.

Energy-focused industries make up three of the top five UK sectors in terms of cleantech and climate tech funding. Collectively, they have benefitted from over £41.5 billion in financial support since the turn of the century.

The report was created by IP specialists GovGrant to research which UK companies are attracting most funding for their green innovations.

Cleantech companies in energy production have the highest level of investment in the UK’s green tech landscape, benefitting from more than £20 billion in investment since 2000. Coming in second are energy asset cleantech companies – including wind and solar farms – receiving just under £18bn.

Alternative energy equipment companies – such as manufacturers and providers of solar panels and hydroelectric equipment – also rank in the top five, attracting £3.44bn.

Commenting on the results, Adam Simmonds, investment research analyst at GovGrant, says: “As climate change action becomes increasingly urgent, it’s no surprise that investment in cleantech is soaring. However, the level of growth is still remarkable.

“The strength of the sector in the UK is also really pleasing. Clearly, our cleantech sector, helped by tax credits, is flourishing. It’s going to be exciting to see where the industry goes and what rising investment can do for the future of the planet.”

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The case for climate change solutions has become more compelling as the earth continues to warm, with a recent UN report warning of irreversible change. This has led to financial support and growth for the sector.

GovGrant data indicated that there has been a 2,384% global increase in capital injected into cleantech companies since 2002. This century, around 3% of total capital invested worldwide has gone into climate change solutions.

The percentage is higher in Europe at around 4%. In the UK, it sits slightly lower at 2.44%.

Although the amounts invested in cleantech – when compared to investments across all areas – seem relatively modest, the number of investors is high.

Globally, just over 8% of all investors are involved in cleantech. In the UK, the figure is around 6%. This indicates a growing appetite for placing money in climate change solutions.

Energy-related industries also dominate cleantech investment around the world. Globally, energy-related companies receive over 43% of overall clean tech investment, with energy production receiving £305bn since 2000.

Tom Mason, CEO at clean energy startup Bramble Energy, said: “With the serious social pressure that has been building over the last few years for change around our impact on the planet and a focus on the need for clean air and sustainable choices, politics has had to listen and we are finally starting to see a shift in rhetoric towards clean energies and how important their role will be in the fight against climate change.

“Regulatory moves looking to restrict fossil fuel use are starting to be put in motion and are only likely to grow with industry looking for matured energy technologies that can work with their needs.

“The great thing is the UK is already uniquely placed with its renewable resources, particularly wind to deliver a stable clean energy market for years to come.”

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