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Why Cleantech Investment Should be a High Priority Now and after COVID-19

May 19, 2020

Why Cleantech Investment Should be a High Priority Now and after COVID-19

Prior to the COVID crisis, progression to Net Zero carbon neutral emissions was rising to the top of the policy agenda in many countries. Understandably, the global health and economic crisis has thrown a spanner into the works. It is crucial though, Robyn Owen and Theresia Harrer write, that in our attempts to recover, we tie in the fundamental need for a better funded systematic government-led Green Deal approach to early stage Cleantech funding. 

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The COVID-19 crisis threatens all of our lives. Understandably, it is currently the central focus of government policy globally. Yet history tells us that post-crisis economic reconstruction is most successful where investment is greatest in new emerging sectors. It is crucial, therefore, that investment in the UK is directed towards globally leading innovations for environmentally sustainable development, rather than simply to become more efficient at producing and selling more of the same.

Prior to the COVID crisis, progression to Net Zero carbon neutral emissions was rising to the top of the policy agenda in many countries. There was a widespread declaration of the climate crisis and climate war and a proliferation of Green New Deals—overarching policies for integrated government-led approaches to delivering reduction in carbon use and emissions.

We have argued that an essential element of climate change policies is a recognition that investing in early stage SME Cleantech innovators is crucial. These are companies developing technologies that lower carbon use and which are key to reaching the ambitious goals of an at least 40% reduction in greenhouse gas emissions set by the UNFCCC Paris Agreement of 2015. However, the costs and risks of investments in the cleantech sectors such as renewable energy, transport, building and communications infrastructure are high.

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