By Paul Vousden, Client Development Director at 350 PPM

Labour has been elected with a spectacular landslide majority and the country has voted for change, which of course was the campaign message that was relentlessly pursued for weeks on end.

The other key themes from Labour were growth and a huge emphasis on achieving net zero and ensuring the UK has renewable energy, sustainable housing and much more focus on cleaner technologies that will support the planet.

The challenge for Labour in achieving growth is the lack of public funds available to kick-start new economic activity, so they have spent a lot of time with businesses and investment houses to gauge the appetite of the private sector to get involved.

So, this is an ideal time for climate tech companies to show their capabilities and create wealth, jobs and prosperity for the UK.

At 350PPM, we work with early-stage climate tech companies that have fantastic ideas but lack the investment funding to get them started. Time and again we see companies that have huge potential to grow and become global players, but they are constrained by the lack of capital.

What can the new Labour government do to encourage and nurture this new emerging raft of brilliant companies that can contribute massively to the green agenda and also create jobs, export and wealth for the UK economy?

Here are a few thoughts if anyone in government is listening:

• The EIS and SEIS schemes have been a great way of encouraging investment in early-stage companies. Investors can benefit from tax relief on their investments in early-stage and potentially high-risk companies.
• If the Government can continue these schemes and, to encourage greater investment in clean tech companies, offer larger tax relief on these investments that would be a great boost. This is not really a cost to the government because they wouldn’t have any tax receipts from these companies if they didn’t get off the ground.  
• Joined up activity for early-stage cleantech companies. There are quite a few government grants available but often finding your way through the maze of schemes, authorities that award the grants and organisations involved can be time-consuming, confusing and frustrating for a start-up that just wants to concentrate on building a great product and a successful business.
• We would really benefit from a simpler system where startups can be directed and fast-tracked to ensure they receive the support they need in a timely fashion.
• Banks are often seen as the first point of contact for investment, but startups find it incredibly difficult to secure funding; in fact, opening a business account can be a mission itself. If the whole banking process could be tailored more to encouraging start-ups this would be a great help.

The UK is already a leader in climate tech – now’s the time to make it the number one country for start-ups in this sector.

A recent report from Dealroom showed the strength of the UK’s climate tech start-ups.

We have a lot going for us in the UK that makes it the perfect place to start a brilliant climate tech business.

• Many excellent universities are conducting valuable research into climate tech solutions, and these ideas become commercialised through university spin-outs.
• We have a long history of innovation across numerous sectors including aviation, motor transport, manufacturing, and lots more.
• There are still some great engineers in the UK despite the decline in manufacturing over several decades. These are people who ‘solve problems’ and they are turning their talents to tackling climate change.
• If young people can see that engineering is a rewarding and exciting career, we will have many more students applying for engineering degrees.
• The UK is a good place to do business with light touch regulation and relatively low taxation, so entrepreneurs are attracted to setting up here.
• At 350PPM we work with several visionary engineers who have devised brilliant solutions to major problems that impact on global warming.

Necessity is the mother of invention.

The race to reach net zero is on and we only have to observe the dramatic changes in global weather patterns to see how the damage and destruction that is caused by tornados, flooding, tsunamis and much more is having a devastating effect on many countries.

Poor weather conditions disrupt farming, so crop yields are lower and the price increases. Any supermarket shopper will tell you how much food prices have increased during the last few years.

The cost of energy has also increased massively, and governments must step in to cap prices or help consumers with their bills. Energy security will be achieved using on and offshore wind and solar as alternatives, and now nuclear fusion is emerging as a potential saviour in this race for clean, renewable energy that does not rely on fossil fuels and the supply demands of hostile nations.

A bright future is in good hands.

The United Nations Development Report (UNDP) (2021) report showed that under 18s displayed greater levels of climate concern than all other age groups globally, with 69% believing in the climate emergency (relative to only 58% of those aged 60 years or more).

Young people are often ahead of the curve on certain issues as they tend to view things in a very simple, black-and-white way. Schools across the country and the pupils’ households are acutely aware of the need to recycle, save energy and raise awareness of the issue.

Of course, some of these bright young people will want to become climate tech champions and solve even more of our problems.

Overall, we are in a good position to make enormous progress in tackling climate change challenges but to ensure the UK does make a major impact we urge the new government to back our clean tech companies that will not only improve the quality of our lives but contribute hugely to the UK’s need for economic growth.