The UK’s department of business, energy and industrial strategy (BEIS) and CCLA, the investment manager for charities, have each invested £20m (€22.2m) as cornerstone investors in a ‘clean growth’ fund.

The duo have created the Clean Growth Fund, managed by Clean Growth Investment Management (CGIM), to invest in early-stage UK clean growth companies pioneering carbon emission reductions in the areas of power and energy, buildings, transport and waste.

The fund is expected to raise £100m in total and the manager is now seeking wider private sector investment from others – pension funds, limited partner investors and family offices.

Alok Sharma, business secretary, said: “With the help of this fund, promising clean growth start-ups will be able to step up to accelerate the UK’s recovery while supporting our path to net-zero by 2050.

“This pioneering new fund will enable innovative low-carbon solutions to be scaled up at speed, helping to drive a green and resilient economic recovery.”

James Bevan, CCLA’s CIO said: “Through the Clean Growth Fund, we now look forward to working with other investors to support these exciting young UK companies aiming to reduce carbon emissions.”

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