Investors go green as government announces renewable energy drive
Last week, the UK government announced its energy security strategy, with a major acceleration in the shift towards a more sustainable future. A £375M support package for green tech is on the horizon, and landmark research from leading global investment bank, JPIN, has unveiled that 43% of UK investors intend on investing in green and sustainable companies.
Currently, over half of the country’s electricity is generated by burning fossil fuels in gas-fired power plants, despite the multiple global warnings of climate endangerment. However, this looks set to change as the UK endeavours to reduce its reliance on external energy providers by producing more homegrown clean power. The ambitious projections from the energy security strategy suggest that 95% of the UK’s electricity could be low carbon by 2030, and that almost 500,000 jobs could be generated in this sector by the end of the decade.
With the sustainability sector set for a boom in the UK, private backers are also eyeing lucrative opportunities in this area. JPIN’s research found that 43% of those looking for investment options in the UK are doing so in the green tech sector – making it the most sought-after industry for investors currently. Green tech was also the most popular choice (45%) for investors targeting emerging markets such as India and Brazil, suggesting that much of the new innovation we see in this sector could come from those countries.
JPIN also provided a regional breakdown of their data to show which areas in the UK had the most appetite for investment in green tech from emerging markets. Leading the way currently is Yorkshire, with 57% of investors looking to back green tech companies from these countries. 32% was the lowest percentage for any area (Scotland), but this still represents almost 1-in-3 investors, showing that interest is high in every area of the UK.
Regional Breakdown of investors looking to invest in GreenTech in emerging markets:
Founder of JPIN, Nayan Gala, comments:
“Reaching net zero is perhaps the greatest challenge society has ever faced, and now this has become one the UK government’s top priorities given the urgency of the current energy crisis.
“It is now more important than ever to generate alternative methods of producing power to combat supply disruptions, particularly in the UK where there is a heavy reliance on other countries.
“However, I’m really pleased to see that there is now such an appetite amongst UK investors to invest in the green tech sector, and hopefully with more backing for innovative startups, we could see some fantastic sustainability solutions in years to come.
“There is also now going to be serious competition for startups in this area, which will only speed up the rate at which we see new technologies being released. At JPIN, we hope to contribute by helping the next generation of green and cleantech startups by providing them with the tools they need to reach their potential in this space.”
