It happens that this blog is going to be published right almost elections in the UK. It can be a good milestone point to keep in mind what schemes UK has to propel climate friendly solutions. The government support of energy transition, climate positive business in the UK is wide and truly speaking a bit complicate to navigate.
So, along this complicated way UK government would like to achieve several goals – promote UK as a place of innovation, develop UK supply chains and support local communities. Also, Government wants private capital to follow to the industries were government funds make a first move.
British Business bank and Innovate UK proposed the following scheme to identify which type of finance is suitable for your business depending on the stage of its development.
Figure 1. Innovation Funding Landscape. Source: UK Innovation Strategy.
If you are a small company with limited resources – it is the task to find the support scheme which suits you and then win such support in the competition process.
We have found that the scheme presented in the UK Net Zero Innovation framework[2] can provide with initial guidelines where to look when you are in the search of fund, to match the industry and size of your business with funds available.
Figure 2 Public Finance Interventions across the different stages of commercialisation. Source: UK Net Zero Innovation Framework.
We attempted to map the solutions which UK Government offer to provide a bit more transparency to the process. This post is not comprehensive, we agree, but at least we can see a wider picture. We may review this post in the future amending it with the most recent developments at that time.
Figure 3. Government Support for Climate Change and Energy Transition Businesses in the UK. Source: Author
There are several documents which govern government support. The best place to start to understand how Government support for Energy Sector works in the UK to our mind in the Innovation Strategy as of 14 Nov 2023 [1].
Figure 4. Low Carbon Sectors Commercial Maturity and Associated Capital Requirements. Source: UK Net Zero Innovation Framework.
Source:
[1]https://assets.publishing.service.gov.uk/media/61110f2fd3bf7f04402446a8/uk-innovation-strategy.pdf,
[2] https://www.gov.uk/government/publications/net-zero-research-and-innovation-framework, page 23 accessed 12 June 2024
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