Cleantech for UK Annual Report 2024: UK Cleantech Secures £5.09B Amid Global Uncertainty

The UK’s cleantech sector is proving its strength in a challenging global economy, securing £5.09 billion in equity and debt financing in 2024. In our Annual Report 2024, we find that despite economic headwinds, the sector remains highly active, with 225 deals completed last year – a 40% increase on pre-pandemic levels.

A Maturing Investment Landscape

The report highlights a shift in financing patterns, with debt financing reaching £2.79 billion across 24 strategic deals, increasingly complementing traditional equity investments of £2.3 billion. This trend suggests a more mature cleantech sector, where investors recognise long-term value but also seek lower-risk financing mechanisms.

Sarah Mackintosh, Director of Cleantech for UK, commented:

"The evolution of cleantech financing in the UK shows that investors still see long-term value in the sector, but the mechanisms for funding growth are changing. Debt is playing an increasingly important role, and while this reflects a maturing sector, it also highlights the need for targeted government policies to ensure companies can successfully scale."

Energy Leads as Investment Diversifies

Investment in energy and power topped the charts, securing £1.05 billion, reinforcing its role as the foundation of the UK’s cleantech ecosystem. Meanwhile, transport, logistics, and environmental solutions showed strong growth, signalling a diversification beyond renewables.

Charlie Garner, Policy Associate at Cleantech for UK, added:

"The UK’s cleantech sector has demonstrated resilience in adapting to shifting investment trends across the economy. The rise of debt financing shows that these companies are becoming more commercially viable, but we need policy frameworks that support this transition—particularly through blended finance and investment guarantees that de-risk private capital."

Key Findings from the Report

• Maturing financial landscape – Debt financing now accounts for 55% of total capital raised.
• Sectoral shifts in investment patterns – Energy and power continue to lead, while transportation and logistics attract increasing capital.
• Policy impacts – The National Wealth Fund and GB Energy signal renewed government support, though details remain unclear.
• Global market dynamics – The US retreat from climate commitments presents opportunities for UK and European leadership.

Supporting the Next Phase of Cleantech Growth

The report also features case studies on UK cleantech innovators, including Biozeroc, pioneering low-carbon construction materials, and Cheesecake Energy, developing long-duration energy storage to enhance grid stability.

Looking ahead to 2025, Cleantech for UK outlines three key policy recommendations to sustain momentum:

• Expand debt and blended finance mechanisms to ensure cleantech companies can access scale-up capital.
• Secure strategic cleantech manufacturing supply chains, reducing reliance on volatile global markets.
• Deliver an industrial strategy aligned with net zero, ensuring UK cleantech maintains its competitive edge.

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For interviews, further insights, or a copy of the report, please contact:

Charlie Garner, Policy Associate, Cleantech for UK
📧 charlie.garner@cleantech.com