Cleantech in the UK - statistics & facts
The UK has already cut its greenhouse gas emissions in half since 1990. Now, it is hoping its thriving cleantech sector can help decarbonize its economy, create jobs, and end the country’s contribution to climate change. Attracting billions of dollars in investment every year for the development of key technologies such as renewables, electric vehicles, and energy storage, the UK is among the leading investors in the clean energy transition.
Other key clean technologies are also growing. Annual UK sales of electric cars, for example, have more than doubled since 2020, with BEVs now representing almost 17 percent of new car registrations. UK sales of heat pumps, which are set to play a vital role in climate neutrality in buildings, have also been rising, reaching an estimated 55,000 in 2022. However, the country is well off track of its installation target of 600,000 per year by 2028. Additionally, the UK plans to develop a competitive carbon capture and storage (CCS) industry as it looks to achieve its target of storing 20 to 30 MtCO₂ per year by 2030. With almost 70 CCS facilities currently in various stages of development, the UK has the second-highest number of projects in the global CCS pipeline.
The majority of UK cleantech investment is concentrated in London, which is among the world’s leading climate tech hubs. Since 2018, the UK capital, which is home to many promising and innovative cleantech startups, has attracted more than 10 billion U.S. dollars in VC climate tech investment.
While the UK is now a thriving cleantech ecosystem, it will need to continue attracting investment if it is to decarbonize its economy by 2050. Looking ahead, the new Labour government is set to provide billions in public finance to key sectors to catalyze private investment, keep pace with other major cleantech hubs, and support the UK’s climate goals.
Cleantech deployment in the UK
The deployment of fully mature cleantech solutions like solar and wind power is already well underway in the UK. Since 2010, the installed capacity of renewable energy sources has increased sixfold to more than 56 gigawatts, with these technologies now accounting for more than 40 percent of the UK’s power mix. The growth in renewable use over the years has been a significant contributor to the UK’s falling GHG emissions.Other key clean technologies are also growing. Annual UK sales of electric cars, for example, have more than doubled since 2020, with BEVs now representing almost 17 percent of new car registrations. UK sales of heat pumps, which are set to play a vital role in climate neutrality in buildings, have also been rising, reaching an estimated 55,000 in 2022. However, the country is well off track of its installation target of 600,000 per year by 2028. Additionally, the UK plans to develop a competitive carbon capture and storage (CCS) industry as it looks to achieve its target of storing 20 to 30 MtCO₂ per year by 2030. With almost 70 CCS facilities currently in various stages of development, the UK has the second-highest number of projects in the global CCS pipeline.
UK cleantech investment
VC investment in the UK clean technology sector totaled 2.6 billion GBP in 2023. Although this was a slight reduction from the previous year’s record high, owing to factors such as global economic uncertainty, UK cleantech VC investments have more than tripled since 2018. The energy and power sector, which includes renewable energy sources, hydrogen, and energy storage, received the largest share of UK cleantech investment in 2023, at 40 percent. Meanwhile, the transportation and logistics sector, which focuses on areas such as electric vehicles and charging infrastructure, received around 12 percent of VC investment. Up-and-coming technologies are also attracting significant funding, with 12 UK CO₂ removal (CDR) businesses securing early-stage investment amounting to 200 million U.S. dollars in 2023.The majority of UK cleantech investment is concentrated in London, which is among the world’s leading climate tech hubs. Since 2018, the UK capital, which is home to many promising and innovative cleantech startups, has attracted more than 10 billion U.S. dollars in VC climate tech investment.
While the UK is now a thriving cleantech ecosystem, it will need to continue attracting investment if it is to decarbonize its economy by 2050. Looking ahead, the new Labour government is set to provide billions in public finance to key sectors to catalyze private investment, keep pace with other major cleantech hubs, and support the UK’s climate goals.
