Discussing the Role of the UK in the cleantech space, challenges for start-ups, and the need to de-risk investment
Working with Cleantech innovators and observing new projects worldwide reminds Sarah of the great potential people have, making her optimistic about the future.
About Sarah Mackintosh
Sarah started cleantech journey by pursing an environmental science degree at the University of Manchester. She went on to successfully pursue a PhD focused on carbon capture and storage also in Manchester. Then, after working for a few years in the CCS field, Sarah went on to serve as a government civil servant for over a decade, taking charge of a range of policy fields – from security to innovation. Her most recent endeavour has now seen her take the reins of Cleantech for UK, offering a chance to influence policy from the private sector.
What is cleantech?
“Cleantech is any type of product, process or service, that provides a superior performance at lower cost. It is solution that eliminates negative ecological impact and improves the productive and responsible use of natural resources.”
Such solutions contribute to the sustainability and protection of the planet, and include sectors such as renewable energy, waste management processes, carbon capture and more.
Investors interest in cleantech is high, exemplified by Sarah through Cleantech for UK’s in-house data, which showed that the UK cleantech space attracted £2.6bn in venture capital investment during 2023, in spite of global economic headwinds.
The role of the UK in the global cleantech space
Sarah is certain that the UK can be a cleantech leader.
“There are many great minds in this country and the UK should capitalise on that. Second, there are many opportunities coming out of this industrial revolution. This is a chance to revitalise our economy. I truly believe that the cleantech industry can provide well-paid jobs across the entire UK. Moreover, if we can commercialise lots of different projects, we can sell them internationally to support our economy. In this sense, we can show the pathway to other countries.”
Climate change is a global problem. Sarah adds that there is a need for international collaboration to solve it: “The more you work together, the better the ideas that come out.”
Cleantech for UK
Cleantech for UK is a policy advocacy group. They are a coalition of company builders and investors that seek to engage with government at the highest levels to support and empower UK cleantech innovators. The organisation works to ensure that the policy environment and public funding landscape really supports the cleantech innovators who spearhead a global clean industrial revolution.
Demystifying cleantech for policymakers
As a former civil servant and innovation policy expert, this task resonates deeply with Sarah.
She explains: “Policymakers are really good at identifying the polices that are needed, but don’t necessarily always understand how they might affect innovators on the ground.”
The need to understand where the money is going, who is going to receive it, is crucial to support cleantech innovators.
“It is quite hard when you are in government to maintain that overall perspective. That is why at Cleantech for UK, we seek to build a bridge between innovators and policymakers. It’s a way to help government assess how certain policies are affecting innovators in real time.”
Recommendations for policymakers in 2024
A key point put forward by Cleantech for UK is the need for funding.
“We observe that there is a gap of investment towards first-of-a-kind stage projects. For investors, the risk is rather high to invest in these types of projects. In the cleantech space, mainly hardware, there is often need for a lot of upfront costs. In many cases, the return on investment is not clearly outlined at the start.”
One of Cleantech for UK’s key messages is the need to fix this investment gap and try to support investors to invest at that stage. The Director of Cleantech for UK urges the UK government to provide an extra push to de-risk investments “through public guarantees or preferential loan programmes.”
Another message Cleantech for UK puts out is to the need to ensure that policies are really enabling and providing clear and predictable market signals.
Sarah explains: “Last year there were mixed signals coming out of the UK government, when they changed some of the targets for phasing out petrol and diesel cars. These types of confusions are not helpful from an investor perspective because it shakes the market base”.
The third message for government, revolves around skills. Sarah explains that the government needs to make sure that they use their skilled work force to the best of their ability, and have a long-term plan in place to adapt to the green transition.
Challenges faced by start-ups
In addition, to funding challenges, Sarah adds that getting planning permissions is difficult. Moreover, having a grid connection can be a problem for other companies.
“At one point the queue to wait to receive a grid connection went up to 15 years. That has drastically hindered our ability to roll out clean projects.”
Advice for Cleantech start-up founders
“I recommend going ahead with your idea and trying to get into one of the many accelerator programmes available through universities and across the UK. Being part of a network of like-minded people, like Cleantech for UK, is helpful to get support and guidance.”
Depoliticising climate technology in a year of general elections
Over the years, climate action has been a political lever for many parties seeking to attract new voters and win elections. This year 2024, brings more people than ever to the voting polls across the world.
In that context, Sarah urges people consider cleantech a solution, not an ideological point.
She explains, “Cleantech is a cluster of solutions to several problems that intersect now, be it an ailing economy, energy security or the looming spectre of climate change. Cleantech is in itself not up for debate. Rather, it is the solution to several of the topics of debate.”
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Sarah Mackintosh interviewed by Natalia Vasnier for The Conference Corner. Feature cover image provided by Sarah Mackintosh.
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