Policy

The UK Innovation Investment Fund, which was set up last summer by the Government to drive growth and create jobs, is launching a £125 million low-carbon and clean technology investment fund.

The Environmental Innovation Fund, which will be managed by Hermes Private Equity, will target small growing businesses, start ups and spin outs focused on the efficient use of both renewable and non-renewable resources.

Hermes has already identified a number of attractive investment opportunities and will start allocating funds shortly, says CEO Susan Flynn.

“The UK has a wealth of innovators and entrepreneurs seeking to create the businesses of tomorrow,” commented Prime Minister, Gordon Brown, who announced the creation of UKIIF last year. “This fund will provide substantial investment where it is needed and deliver strong returns.”

The Department of Business, Innovation and Skills closed the first round of funding with £50 million from government sources and £75 million from private investors, but will continue to look for new support.

“This new fund will help the UK to build on existing strengths in the sector and enable British companies to demonstrate and commercialise these technologies,” says Energy and Climate Change Minister David Kidney.

The UK is currently the sixth largest low carbon economy in the world with 3.5% of global market share, according to the Carbon Trust. The market brings economic benefits and investment of around £6-8 billion a year to Britain.

For further information:
www.berr.gov.uk/
www.dius.gov.uk/innovation/ukiif

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Global investment of $10.5 trillion in low-carbon technology needed, says IEA (11-Nov 2009)
Support for energy efficiency and electric cars in UK Pre-Budget Report (10-Dec 2009)