UK: Understanding the Cleantech Ecosystem - Key Insights from Innovation Zero’s Webinar 

The UK is regularly described as one of the world’s most active cleantech markets, with world class science, ambitious climate policy, and a strong concentration of specialist capital. Yet for many innovators, investors, and international organisations, navigating the ecosystem can still feel fragmented, particularly when it comes to scaling, deployment, and reaching commercial maturity. 

In this Innovation Zero webinar moderated by Tim Mann (Founder, Innovation Zero), an expert panel unpacked where the UK ecosystem performs strongly, where companies tend to get stuck, and how innovators and investors can engage more effectively in 2026. 

Speakers 

• Tim Mann, Founder, Innovation Zero (Moderator) 

• Sarah Mackintosh, Director, Cleantech for UK 

• James Cole, Chief Innovation Officer, CISL (Cambridge Institute for Sustainability Leadership) 

• Sheena Hindocha, Head of Clean Energy and Built Environment, Innovate UK Business Connect 

• Susannah McClintock, Investment Partner, Clean Growth Fund 

With a globally diverse audience, including around 30% international registrations representing roughly 60 countries, the session focused on one clear goal: cutting through complexity and identifying practical ways to accelerate market engagement. 

 

1) What counts as cleantech in the UK and why it matters 

Sarah Mackintosh set out a broad, pragmatic definition of cleantech that extends well beyond energy, spanning multiple sectors and enabling technologies. 

“When we think about Cleantech, we think of it in a very broad sense. So, it’s really anything that allows us to do more with less.” 

This matters because the UK market is no longer organised around a single “energy transition” sector. Cleantech now spans power, transport, the built environment, materials, industrial processes, chemicals, logistics and, increasingly, digital solutions that optimise systems rather than replace them outright. Many high-growth companies therefore do not present themselves as climate companies first; they appear as software, materials science, manufacturing, or infrastructure businesses whose core value proposition is efficiency.

James Cole added that this breadth is reinforced by the UK’s policy architecture. Over time, regulation and long-term climate targets have created relatively clear demand signals across multiple sectors, meaning innovation is not driven solely by subsidy but by market pull. Standards, procurement frameworks and sector-specific regulation increasingly shape adoption, positioning policy not just as a constraint on industry, but as a mechanism that creates commercial opportunity.

 

2) Where the UK ecosystem is strong: early-stage innovation and support density 

The panel aligned on several UK strengths: 

• A strong early-stage pipeline driven by universities and spinouts 

• Meaningful public support, including grant funding and innovation agencies 

• A dense network of accelerators, hubs, and clusters across the UK 

• Geographic proximity that makes collaboration and convening easier than in many larger markets 

James highlighted the power of being embedded in active innovation communities, where proximity can accelerate partnerships and investment conversations. Sarah reinforced that accelerators are not only for university spinouts, noting there are many programmes accessible to founders from different backgrounds and sectors. 

Susannah McClintock also emphasised the demand side. Even with some recent softening in ESG focus globally, she noted that the UK corporate community remains a major force in adoption. 

 

3) The sticking point: scaling capital and the “missing middle” 

The panel agreed that the UK’s primary challenge is not innovation, but scale.

From pre-seed through Series A, cleantech companies can usually access grants, angel investment and specialist venture capital. The difficulty emerges once technologies move beyond demonstration and into deployment, particularly true for hardware, manufacturing and infrastructure solutions.

Susannah McClintock described the key constraint as the transition into later funding rounds and first-of-a-kind commercial projects. Many climate technologies require large upfront capital expenditure, operational validation and multi-year revenue certainty before they can attract mainstream investors.

“Software alone won’t get us to net zero.”

In other words, while venture capital can support innovation, the energy transition ultimately depends on physical assets: plants, equipment, industrial processes and new infrastructure. These projects sit in a financing gap between venture capital and traditional project finance, often referred to as the “missing middle”.

Sheena Hindocha noted that public funding bodies are increasingly attempting to bridge this gap by de-risking private investment through innovation loans, investor partnerships and demonstration support. However, the step from pilot to full commercial deployment remains one of the most difficult stages in the lifecycle of a UK climate technology company.

Sarah Mackintosh added that this is not solely a UK problem. Similar challenges appear across Europe, where differing financial systems and policy frameworks shape how blended finance is deployed. The issue is therefore less about a shortage of ideas and more about the complexity of funding industrial transformation at commercial scale.

 

4) What makes late-stage businesses investable: blended finance, offtake, and proof 

Asked what TRL 8 to 9 companies should do to become more attractive to investors, the discussion pointed to practical moves: 

• Build blended finance packages using grants, equity, and debt 

• Provide stronger evidence that scaling risk is understood and manageable 

• Secure credible demand signals, including corporate partnerships and offtake agreements 

• De risk through validation, certification, pilots, and techno economic assessment 

The panel also pointed to market mechanisms that bring buyers closer to innovators earlier, including advanced market commitments in emerging areas like low carbon materials. 

 

5) Government’s role: strong market signals, tougher procurement pathways 

On government’s role in enabling cleantech markets, the panel highlighted strengths and friction points. 

Strengths included policy frameworks that create market direction and reduce uncertainty, alongside early innovation support and catalytic funding. 

Challenges included procurement barriers for SMEs, complexity across planning and delivery systems, and the need to convert ambition into consistent, long term follow through. 

 

6) Navigating the ecosystem: hubs, catapults, clusters, and where to start 

The session offered a useful map of the innovation support landscape. 

Sheena outlined how innovators can engage through academic clusters, catapults and research organisations that provide facilities and expertise, and Innovate UK pathways that connect partners across sectors and regions. 

Her practical recommendation was to start with one credible entry point and use it to navigate into adjacent support, rather than trying to map the entire system from scratch. 

James added that founders should be clear about what they need from any hub or accelerator, whether that is investor access, technical support, corporate customers, or founder development, because time is a scarce resource. 

 

7) International entrants: where companies commonly get stuck 

For international innovators and investors, the panel highlighted recurring barriers: 

• Market specific dynamics, including UK energy pricing structures 

• Planning, grid access, and permitting complexity 

• Certification and validation expectations 

• A relationship driven culture where trust and familiarity matter in decision making 

Both Susannah and Sheena emphasised that local market understanding and in country partnerships can make a major difference to speed and success. 

 

What to prioritise in 2026: panel quick fire advice 

To close, each panellist shared a clear priority for those entering the UK ecosystem: 

• Build relationships early and integrate into the ecosystem 

• Engage with government and regulators early, especially where policy shapes market access 

• Use events and networks to connect quickly with high quality partners 

• Stay grounded in commercial value and market demand, not only mission 

 

Continue the conversation at Innovation Zero World 2026 (28 to 29 April) 

The webinar reinforced a clear message: The UK has world class ingredients for cleantech leadership, but scaling success depends on navigating the system with clarity, partnerships, and early engagement across finance, policy, and buyers. 

Many of these themes, including scaling capital, deployment pathways, procurement, validation, and building investable businesses, will be explored in depth at Innovation Zero World 2026 on 28 to 29 April, in London Olympia. Register here.