14 May Report highlights need to scale low carbon investment to maintain path to net zero
A new study has highlighted that UK businesses must ramp up their investment plans in cleantech solutions as the pathway towards reaching net zero emissions by 2050 declines.
The new report produced by the research group Energy Systems Catapult was responsible for developing four possible scenarios based on its peer-reviewed modelling system for various net zero compliant pathways.
The study shows that any future scenario will depend considerably on bioenergy production, negative emissions and carbon capture and storage (CCS) technologies, like direct air capture and bioenergy with CCS.
Without adopting technologies on a larger scale, the research doesn’t identify a clear path to achieving net zero emissions. The report emphasises the need for immediate and transparent incentives and measures to support innovation and continued market development for these technology options over the next 15 years.
Guy Newy, CEO of Energy Systems Catapult, explains that 2050 is only a little over 300 months away, and while the pathway to net zero is narrowing, continued innovation and progression in cleantech provide optimism. Newy highlights that we must accelerate the pace and scale of deployment to new levels. The UK is home to some of the most exciting innovators, and Catapult is confident they can harness the opportunity.
The report emphasises that focusing simply on clean energy deployment isn’t enough. Integrating these systems into a reliable, clean energy system is critical. Applying a holistic approach that supports customers and other behavioural changes is equally vital. According to the study, those businesses capable of creating appealing customer products and business models for integrated domestic energy solutions will succeed in the long term.
The report states that the UK achieving net zero emissions by 2050 is still possible, costing under 1% of the national GDP. However, to achieve this requires significant investment, exceeding £16 billion a year from the public and private sectors.
Establishing the pathway to fast-track climate technology
Across Europe, multiple climate technology innovators and investors have announced the ‘Climate Brick’, a community-focused initiative that intends to manage the climate crisis through technological progression. This initiative is being headed up by EQT Ventures and Contrarian Ventures, with support from organisations like HSBC Innovation Banking UK, Norrsken, Northvolt and more.
The new group has introduced a study exploring climate technology, providing detailed assessments and strategies to accelerate and scale climate tech businesses. Forecasts suggest climate technologies could mitigate nearly 90% of global emissions by 2050. However, this will require an investment of £270 trillion by the same year. The study emphasises the need for collaboration within the industry.
The Climate Brick intends to facilitate this collaboration by delivering an ecosystem where climate technology professionals can access the required resources and support. Sandra Malmberg, the founder of Climate Brick, explains that the pathway to scale climate tech is unconventional, in comparison to traditional venture capital investment. Malmberg believes the Climate Brick is the missing step to support the community, accelerate target setting, enhance capital allocation and strengthen stakeholder collaboration, providing growth on a larger scale.
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