A multi-disciplinary team of funds, financial services and procurement experts from Gowling WLG has advised the UK Department of Business, Energy & Industrial Strategy (BEIS), in partnership with fund management company CCLA, to establish a new £40 million Clean Growth Fund aiming to invest in the country's most promising early stage clean growth ventures.

The Clean Growth Fund will invest in early-stage "clean growth" companies pioneering carbon emission reductions in the areas of power and energy, buildings, transport and waste that are scalable and involved in sustainable technology businesses, primarily in the UK. The focus being UK low carbon, clean tech. It is hoped that the Fund will grow to £100 million.

The fund will seek to accelerate the development and commercialisation of clean growth technologies, to create new and skilled jobs across the country, and contribute to the UK's efforts to deliver net zero by 2050.

The new fund addresses the strong market need for new funding to support clean growth companies at the 'early' stage of their development. BEIS and CCLA want to support and enable an increase in early stage investment in clean growth technologies and solutions by partnering public funds with private capital, revealing the opportunities available in the UK clean growth space.

Business Secretary, Alok Sharma, said: "The need for innovative and ambitious ideas across green industries has never been greater. I am pleased that with the help of this fund, promising clean growth start-ups will be able to step up to accelerate the UK's recovery, while supporting our path to Net Zero by 2050.

"This pioneering new fund will enable innovative low-carbon solutions to be scaled up at speed, helping to drive a green and resilient economic recovery."

The new fund will be managed by Clean Growth Investment Management LLP (CGIM), led by Beverley Gower-Jones and working in partnership with Northstar Ventures brings together in-depth knowledge of the UK low carbon technology sector and investment expertise.

BEIS and the CCLA are the cornerstone investors for the Clean Growth Fund, investing £20 million each, although the aim is to attract a total of £100 million, the remainder coming from wider private sector investment such as pension funds, Limited Partner (LP) investors and family offices.

Sharon Ayres, funds partner at Gowling WLG, led a cross-firm advising BEIS. Sharon said: "We are pleased to have advised BEIS on the launch of this innovative fund. The fund will provide a major boost to the UK's low carbon sector, at a time when there is clearly strong demand for new funding support for businesses."