From Startups to Scaleups—How Britain is Dominating Climate Tech

From Startups to Scaleups, How Britain is Dominating Climate Tech

Britain’s climate tech scene is on fire. It is one of the best-funded in the world, and investors are pouring in cash. The momentum keeps building.

The Money Is Rolling In

In 2023, UK climate tech startups received 29% of all VC investments in the country. London alone received £2.75bn, making it the second-biggest climate tech hub after Stockholm. Even as global funding dipped in 2024, UK investments jumped by 24%.

The Growing Pains

Scaling up isn’t easy. High costs, long development cycles, and hardware-heavy solutions make climate tech a tough game.

“These startups need a lot of upfront cash,” says Eleanor Cox from Lloyds in London. “Building infrastructure, sourcing materials, testing—it all takes time and serious money.”

Investors love the mission but get cold feet when profitability takes too long. That’s why public and private sectors must keep pushing forward. Britain’s climate tech ecosystem needs sustained backing to stay a global leader.

Power Roll: Reinventing Solar Energy

Forget heavy, rigid solar panels. Power Roll’s PV film is lightweight, flexible, and cheap. Stick it on rooftops, campervans, or anywhere else. Their patented microgroove tech makes solar more accessible than ever.

Now, they’re working on a commercial-scale factory in North East England. Once up and running, it could produce enough solar film to power 32,000 homes.

CEO Neil Spann knows how hard financing is for small players. Lloyds helped them navigate funding rounds, making sure they got the most out of every pound.

Notpla: Killing Single-Use Plastics

Seaweed instead of plastic. That’s Notpla’s mission. This London-based startup has created biodegradable, even edible packaging. Their drink pods? Used at the London Marathon. Their seaweed-coated takeaway boxes? Partnered with Just Eat.

“Seaweed is a super-resource,” says CRO Lise Honsinger. It grows fast, doesn’t compete with food crops, and even helps marine biodiversity.

Notpla started with crowdfunding, secured grants, and then landed a £20m Series A investment in 2024. The challenge? Finding reliable financial services. Lloyds stepped in with 12 months of free banking, helping boost credibility with investors.

Sorted: Smarter Recycling with AI

London-based Sorted is making waste management more efficient. AI-powered cameras scan trash on conveyor belts, spotting recyclables that usually slip through. When an item is found, lasers guide workers to grab it fast.

One pilot test cut residual waste by 50% and slashed carbon emissions.

“We use AI to boost human efficiency,” says co-founder Arthur Goujon. “Our pilots show better recycling rates, lower costs, and increased revenue.”

Upp: Turning Waste into Plant Protein

Shropshire’s Upp is shaking up farming. 70% of broccoli plants go to waste, but Upp transforms that waste into high-protein food ingredients.

Their AI-powered harvester picks crops with machine learning and 3D cameras. Farmers save money, reduce waste, and boost efficiency.

“Broccoli protein beats pea protein,” says CEO David Whitewood. “More nutrients, more fiber, completely natural.”

Why This Matters

This isn’t just about saving the planet. It’s an economic goldmine. Investors aren’t throwing money at climate tech just to feel good. They see massive returns ahead.

Oxford Economics predicts the green economy will hit $10.3tn by 2050. Companies like Power Roll and Upp aren’t just green—they help businesses save costs, reduce waste, and increase profits.

Support from the Private Sector

Britain’s climate tech industry needs long-term investment, regulatory backing, and risk-tolerant investors. The good news? The private sector is stepping up.

Lloyds offers discounted sustainable financing to help companies adopt greener tech. Programs like Clean Growth Financing Initiative and Green Asset Finance support businesses investing in solar, heat pumps, EVs, and energy-efficient tech.

With strong funding, bold ideas, and the right support, Britain’s climate tech sector is poised to lead the world. The momentum is real. The impact? Even bigger.

Is Carbon Capture the Key to Net Zero or a Costly Illusion?

Carbon capture, utilization, and storage (CCUS) is taking heat. Critics call it a “high-risk gamble.” The UK government has pledged £22 billion to fund it over 25 years—but three-quarters of that comes straight from consumer levies.

The Money Question

A Parliamentary report slammed the plan. The Department for Energy Security and Net Zero, it said, never assessed how much this will hit energy bills. Households already struggle with high costs, yet they’re expected to shoulder the burden.

Then came another blow. Friends of the Earth Scotland called it a “£22 billion handout” ahead of the latest 6.4% rise in the UK energy price cap. Campaigner Stu Bretherton didn’t hold back.

“Taxing people for unproven tech,” he said, “betrays voters who were promised a real green transition.”

How Much Will It Cost?

The numbers aren’t pretty. £16.5 billion—that’s the estimated public share of CCUS funding. That means every household pays £589.29 over 25 years. Broken down? That’s £23.57 a year added to bills.

All of this raises bigger questions.

• Does carbon capture even work?

• Do we need it that badly?

• Is it worth the price tag?

Other clean tech isn’t free either. But CCUS remains slow, uncertain, and massively expensive. Is it worth the risk?

The Story So Far

CCUS isn’t new. It’s been touted as a way to keep burning fossil fuels while cutting emissions. It’s particularly aimed at:

• Gas-fired power plants

• Blue hydrogen production

• Biofuel-based power

• Industries like steel and cement, where cutting emissions is tough

The logic? We’ll always produce some CO₂. So, we need ways to capture and store it.

Globally, CCUS is still in its infancy. It’s barely off the ground and far from proven at scale. But that doesn’t mean it won’t work—just that we’re gambling on something untested and costly.

Who Really Benefits?

Many climate groups see a big problem—oil and gas companies love CCUS. Why? Because it allows them to keep drilling and selling fossil fuels.

These same companies are also the ones offering to store the captured carbon in old North Sea oil and gas fields.

Critics argue it’s all just greenwashing. A PR move to justify pumping more oil.

As Alex Lee from Friends of the Earth Scotland put it:
“Carbon capture is a greenwashing con by the oil industry.”

Slow and Pricey

Another major issue? CCUS is moving at a snail’s pace.

The Public Accounts Committee report pointed out that the UK only just signed contracts for two projects in the northeast—one emitter, and one carbon storage company.

Two years later than planned. And the earliest they’ll start? 2028.

Even worse? The UK relies on CCUS to hit its net-zero targets. But we still don’t know if these projects will even work.

Final Thought

CCUS promises big things—but delivers little. It’s slow, expensive, and still a question mark. Meanwhile, households are footing the bill.

Is it really the climate solution we need? Or is it just another costly distraction?

Bakar Labs to Launch the World’s Largest Climate Tech Incubator

UC Berkeley’s Bakar Labs is making a big move. A brand-new incubator is coming—Bakar Climate Labs. The mission? Supercharge climate technology and push it from research to real-world solutions.

From Biotech to Climate Tech

Bakar Labs started with biotech. Launched in 2021, its first incubator focused on healthcare innovations. But now, it's expanding scope—tackling climate health and sustainability head-on.

“Our goal?” said David Schaffer, director of QB3 and Bakar Labs. “Take groundbreaking ideas from academia and turn them into companies that scale real solutions.”

A Green Giant in the Making

The UC Board of Regents approved the plan in May. The Bakar ClimatEnginuity Hub is set to open in 2028. At 145,000 square feet, it’ll be the biggest climate tech incubator yet.

And it won’t just house clean tech—it’ll be clean tech. Solar panels. Backup batteries. Smart windows. “We’re practicing what we preach,” Schaffer said. “The building itself will symbolize the mission.”

No Waiting for 2028

The climate crisis won’t pause for construction. So Bakar Climate Labs isn’t waiting either. A pilot program is already running, with five startups onboard. Full-scale operations? 50-60 companies.

“The planet is heating up. We can’t afford to wait,” Schaffer said.

First Tenant: FutureBio

FutureBio is already at work. The startup is creating recyclable, durable plastic. Co-founder Zilong Wang first explored the idea in Jay D. Keasling’s lab.

The challenge? Traditional plastics need toxic solvents to recycle. But Wang’s team found a better way—an acid solution that breaks down plastic easier and cheaper.

Students Welcome

Bakar Climate Labs won’t be just for startups. It’ll be a place where students—grad and undergrad—can learn and innovate.

“These incubators will be classrooms,” Schaffer said. “A space to teach the next generation.”

Final Thought

Bakar Climate Labs is more than a building. It’s a launchpad for ideas that could change the planet. And they’re not waiting to make it happen.

We built climate.online to be your go-to guide in the fast-moving world of ESG and climate tech. Hope you find it useful. Hope it sparks ideas.

Your impact starts here. Big or small, every step counts. And we’re here to back you up—every step of the way.

Got ideas? Wanna collaborate? Looking for sponsorships? Hit us up. Let’s make something happen.

Thank you for reading

-Shen Pandi and team