Clean Growth Fund Secures €56.8M To Boost UK ClimateTech

The funding will support early-stage UK startups driving net zero innovation in sectors like energy, mobility and the built environment.

The fundraise, announced today, builds on the success of CGF’s first €117.2 million Fund I, launched in 2020. Fund I focused on impact-driven, disciplined investment, backing 19 startups projected to cut over 55 million tonnes of CO2e by 2030.

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Notable portfolio companies include Sunswap, providing zero-emission transport refrigeration to clients like Tesco and DFDS; Rendesco, a leader in low-carbon ground-source heat networks with a €116 million project pipeline and Above, a solar infrastructure optimisation startup using robotics and AI, achieving 50% CAGR revenue growth since 2021.

Investors in Fund II include returning LPs such as Strathclyde Pension Fund and new institutional backers like Islington and East Riding LGPS, reflecting alignment with the UK government’s Mansion House Compact, which encourages pension funds to invest in high-growth sectors like climate innovation.

CGF’s approach combines strong financial performance with high climate impact. A certified B Corp with a score of 133.8, the firm is led by a team with deep expertise in climate science, technology, and finance, enabling effective collaboration and insight into commercialising sustainable innovation.

“Raising capital in this market isn’t easy, especially with global political uncertainty affecting climate policy momentum. Despite this, the UK continues to stand out as a hub for climate innovation – and the strong first close of Fund II reflects the trust our investors place in our team and our mission,” said Beverley Gower-Jones, Managing Partner at Clean Growth Fund.

Fund II will continue CGF’s focus on early-stage UK companies with strong emissions reduction potential. Initial investments will range from €580k to €5.8 million, targeting six key areas: power and energy systems, transport and mobility, industrial decarbonisation, buildings, agrifood and land use, and the circular economy including waste and water.

The fund will also expand its national reach, with CGF engaging more deeply across UK innovation hubs. As part of this, a Climate Tech Roadshow is scheduled in Glasgow on 9 September, bringing together investors, founders, and ecosystem stakeholders with the CGF investment team.

Investor endorsements further solidify CGF’s growing stature. “Clean Growth Fund’s combination of rigorous investment discipline, clear climate impact and a strong focus on delivering commercial returns made our decision to reinvest straightforward. The UK needs mission-driven, sector experts like CGF to lead in net zero delivery,” said Ian Jamison, Investment Manager, Strathclyde Pension Fund.

About Clean Growth Fund

CGF invests in UK early-stage tech startups that cut greenhouse gas emissions or improve resource efficiency across power, transport, industry, buildings, waste, and water. The fund targets companies with commercially viable solutions generating early revenue, as well as pre-revenue businesses with a minimum viable product.