How can the UK create a more attractive environment for Greentech investment? Eleanor Maciver, Partner and Sustainability Champion at European IP Firm Mewburn Ellis, investigates.
In June 2019, the UK became the first major economy to establish a legally binding commitment to achieve net zero greenhouse gas emissions by 2050, and in November 2020 introduced a ten-point plan for a green industrial revolution.
The UK is teeming with new ‘green’ technologies—from next-gen batteries and renewable grid tech making energy infrastructure net-zero, to grown materials and synthetic biology replacing less sustainable traditionally fossil fuel derived products.
Looking at the science and entrepreneurial drive of founders and VCs at the early stages of developing these technologies, the UK looks set to be a powerhouse in the green industrial revolution.
But there’s concern about a widening gap between innovation and commercial impact. Venture capitalists and founders are increasingly sounding the alarm: the UK’s potential is vast, but its ecosystem is underpowered. Reports from the European Patent Office (EPO) and the European Investment Bank (EIB), and the UK Intellectual Property Office (UKIPO) on the IP landscape and commercialisation of green technologies provide data driven insights into these trends.
So how can we harness the UK’s potential and build a Greentech sector fit for the future?
Put simply, the UK must evolve its approach to support and foster scaling of the right technologies. From the reports, and discussions with VCs and founders, this will involve a combination of supporting early-stage science, unlocking capital, targeted regulation, and zeroing in on commercialisation pathways.
Protecting and prioritising Foundational Science
The UK’s research base is world-class but translating that science into commercial impact remains a challenge. According to a recent UKIPO report1, green technology patent filings from UK universities and public research institutions have grown over 160% since 2016.
The UK excels at early-stage Greentech innovation, but novelty alone doesn’t guarantee investment. Startups must show how their technology can be produced, scaled, and priced competitively. This is where a strong business plan with clear technical milestones, an IP strategy, and practical go-to-market plans become essential—not just to gain traction but to attract serious funding.
Tom Hardy of Elbow Beach Capital underscores the need for targeted support for would-be founders making this journey2, saying, “UK scientists and engineers, while brilliant in their fields, often lack commercial acumen: they’ve spent decades mastering their discipline, not running companies.”
Without this support, many world-changing ideas stall before they reach the market. Some such support is available through accelerators and incubators such as “The Greenhouse – Undaunted”3 and VCs often work closely to develop business plans and skills in the companies they invest in. But these ecosystems are not widespread or necessarily accessible by all.
IP strategy: a critical part of investor readiness
A key component to success for deeptech start-ups is a compelling IP strategy, the foundation of which is often started by research institutes. As Jonathan Tudor of Clean Growth Fund explains4, “IP is important to us. We need to know that the companies into which we put our capital are able to protect against copycats and infringers.
“Otherwise we may not be able to secure a return, so it is vital that the founders we invest in learn to master it.”
This perspective echoes findings from the EPO and EIB in their study on financing and commercialisation of cleantech innovations5. They report that nearly 70% of cleantech SMEs view IP as an important enabler in attracting funding and ultimately scaling-up.
Supporting growth: Infrastructure and Regulation
Many Greentech and science-led startups struggle to find affordable, high-quality lab or R&D space. With hybrid working now firmly entrenched, Pippa Gawley of Zero Carbon Capital suggests6 that “there is an enormous amount of office space available in London. Offices just need retrofitting to turn them into lab space.”
Repurposing redundant office stock for R&D offers one possibility to ease this constraint and enable clustering of early-stage innovation.
Although access to finance is considered more important to small business, all business types including start-ups also noted a need for consistent regulation to support commercialisation in the EPO and EIB study. Pippa echoes this: “Regulation which supports the greentech sector is also key such as removing blocking powers for implementation of renewable energy infrastructure e.g. offshore wind farms”
Doubling down on the UK’s strengths
Rather than spread itself thinly, the UK could focus on areas where it holds structural advantages such as:
Battery innovation, backed by existing strong materials science and EV ecosystems; and
Industrial biotech, where life sciences infrastructure offers a strong base
Public investment, tax incentives, and targeted R&D support in these areas could drive faster growth and global positioning.
Global context: U.S. Inflation Reduction Act and the EU Green Deal
The U.S. Inflation Reduction Act has attracted a wave of Greentech projects particularly clean energy projects. Currently, its long-term political durability remains in question and so uncertainty looms, potentially providing an opening for other countries to capitalise on.
The EU Green Deal Industrial Plan aims to “support net-zero technology manufacturing and reduce dependency on third countries,” backed by regulation and significant funding instruments7.
For the UK, neither inside the Inflation Reduction Act’s sphere of influence nor the EU’s Green Deal, the path forward could lie in speed and clarity both in terms of regulation and targeted financial support.
Conclusion: from innovation to impact
As the recent reports from the EPO and UKIPO both highlight, the UK is home to a wealth of cleantech innovation.
The UK has the science, the talent, and the financial ecosystem to start the commercialisation journey. Now it needs urgency, leadership, and long-term commitment to convert its Greentech ambitions into global advantage. The June 2025 spending review showed some positive signs in terms of financial support for certain energy sectors – so we will watch this space with interest.
References
- UKIPO, The Race to Net Zero: Tracking the Green Industrial Revolution Through IP
https://www.gov.uk/government/publications/the-race-to-net-zero-tracking-the-green-industrial-revolution-through-ip - Mewburn Ellis, Ask a VC: How Can UK Greentech Startups Scale and Compete Globally? https://www.mewburn.com/news-insights/ask-a-vc-how-can-uk-greentech-startups-scale-and-compete-globally
- https://undaunted-hq.org/programmes/the-greenhouse/
- Mewburn Ellis, Ask a VC: How Important Is It for Greentech Startups to Have an IP Strategy?
https://www.mewburn.com/news-insights/ask-a-vc-how-important-is-it-for-greentech-startups-to-have-an-ip-strategy - European Patent Office (EPO) and European Investment Bank (EIB), Financing and Commercialisation of Cleantech Innovation https://www.eib.org/attachments/lucalli/20240003_financing_and_commercialisation_of_cleantech_innovation_en.pdf
- Mewburn Ellis, How Do We Build a UK Greentech Sector Fit for the Future?
https://www.mewburn.com/news-insights/how-do-we-build-a-uk-greentech-sector-fit-for-the-future - European Parliament, The Green Deal Industrial Plan: Towards Net-Zero Industry in the EU
https://www.europarl.europa.eu/RegData/etudes/IDAN/2023/740087/IPOL_IDA(2023)740087_EN.pdf
