The UK is home to one of the world’s most advanced climate tech ecosystems, second only to the US. The sector is advancing decarbonisation, supporting national economic goals, and creating more than 72,000 jobs across the country. Between 2020 and 2024, UK climate tech startups attracted £15.5 billion across nearly 3,700 deals – accounting for approximately 10% of all domestic growth-stage funding. Its strengths are not confined to a single city or sector, but are distributed across the regions, where companies are drawing on local skills, industrial heritage and specialist infrastructure. As global competition intensifies, the UK’s ability to remain a climate tech leader will depend on how effectively it mobilises these regional capabilities.
Across the UK, regions are creating distinct centres of climate tech expertise. Wales, for example, has leveraged its natural resources to become a leader in hydrogen, marine technologies, and renewables. Scotland, too, stands out for its achievements in renewable energy, supported by a strong technical workforce. Meanwhile, the West Midlands has built on its automotive heritage to drive innovation in electric batteries and clean transport.
Regional diversity is a strategic strength that needs to be engaged and leveraged by the UK government. Hardware heavy climate tech domains, like offshore wind, hydrogen, advanced manufacturing and grid scale storage, require ports, factories, testbeds, and engineering hubs that sit outside London. They are central to the UK’s net zero strategy and critical to competing globally. But the UK will only realise this opportunity if these companies have the conditions to scale.
