Qatari’s £4bn climate tech plans shows UK’s appeal – but there’s more to do, think tank warns
A planned £4bn Qatari investment splurge on the UK’s climate tech sector could deliver a major boost to the UK’s green ambitions, but the government must now create the right environment for it to thrive, a top think tank has warned.
Qatar’s non-profit arm, the Qatar Foundation, is reportedly set to pump some £4bn into a new campus that will look to fuel a wave of energy research and green tech development, The Sunday Times reported yesterday.
As part of the plans, the foundation will reportedly set up a £1.5bn fund to channel cash into early stage companies developing technologies to help tackle climate change, as well as working alongside engineering giant Rolls Royce to deliver a technical programme for the project.
Sites are reportedly being scouted out in London, Oxford and Cambridge. Qatari funding for the project has been committed for 20 years.
The news was welcomed by leading tech group the Start-Up Coalition today, who said the interest from Qatar “demonstrates the global appeal of the UK’s climate tech sector”.
“From renewable energy to agtech, EVs to the Built Environment, we’re home to some of the most exciting innovators and innovations that will power the net zero economy,” Charlie Mercer, the group’s head of economic policy, told City PM
“The £1.5bn commitment for early stage climate innovations is a considerable sum but there’s work to do to ensure these inventions can reach the scale required,” he added.
Mercer added that the success of the UK’s green tech industry would hinge on creating a policy environment to rival the US, as clean tech firms eye up the tempting subsidies offered by President Biden’s Inflation Reduction Act.
Electric vehicle firm Tevva is the latest so-called climate tech company to ditch its UK base for the US in search for more willing investors.
“We know the UK government plans a response to the US Inflation Reduction Act in November, and hope it matches the ambition we’ve seen across the pond,” Mercer said.
“A robust strategy for climate techs from the UK government will ensure the startups built through the scheme announced over the weekend can reach their true potential,” he said.
The Qatar Foundation didn’t immediately respond to a request for comment, but spokesperson told the Sunday Times: “We continue to work alongside Rolls-Royce to develop new, leading climate tech ventures and technology hubs, both in the UK and Qatar.”
A spokesperson from Rolls-Royce, said: “We are continuing our positive dialogue with the Qatar Foundation to work together to establish a climate technology centre. We can’t comment on any further detail at this time.”