Climate change secretary Ed Miliband has announced a £20m government backed venture capital investment fund for research and development of clean energy technology.
The allocation, announced yesterday, is the latest instalment of £405 million announced in the Budget for low carbon. It will be available for R&D in areas such as wave, tidal, fuel cells, solar and energy.
The Department of Energy and Climate Change (DECC) says it has stepped in with the cash because private sector investment in the area has slipped since the beginning of the downturn.
“It is essential we meet our long term climate change goals,” said Miliband. “That’s why we’re intervening with support for tomorrow’s green energy technologies. Where market capital isn’t coming forward, we’re stepping in to plug the gap as speedily as possible.”
Penny Shepherd MBE is chief executive of UK Sustainable Investment and Finance. She added: “Government support now is vital to develop the UK low carbon technology businesses that we need for lasting prosperity.
“This commitment shows that the Government is serious about promoting a low carbon economy and sustainable investment in the UK.”
Other pots allocated from the £405m so far include £120m to support the development of Off-shore Wind technologies and £60m to help accelerate the development and deployment of wave and tidal energy in the UK.
A spokesperson for DECC said an update on who can apply for the funding and when it becomes available will follow.
