It would be an understatement to say that the launch of renewable energy initiatives across nations has drawn criticism, particularly from those within the marketing sector. Their grievances begin with corporations imposing wind farms upon idyllic rural landscapes. Next, individuals felt the sting of additional expenses on their energy invoices, intended to offset the development costs of these infrastructure projects. These have been introduced as a response to arguably remote global climate issues, issues that sceptics question the existence of.
This perspective was shared recently by Greg Jackson, the founder of Octopus Energy, one of the UK’s pioneering companies, at a climate conference hosted by the Financial Times. He lamented the current absurd scenario where, despite renewable energy solutions being far less costly, the system failure to convey this advantage to the consumer.
Established in 2016, Octopus Energy quickly rose to the top, becoming the second-largest retail energy provider in the UK. The company’s international presence is bolstered by investments in wind farms, its installation of domestic heat pumps, provision of electric vehicles, and support for subsea green power cables.
Listening to Jackson, one is invigorated by his firm belief in the potential of renewable energy for regular customers. He insists on making green energy available at affordable prices, notably offering cheaper electricity for those residing near wind farms.
However, Jackson’s passion for the environment, seen in his early involvement with Greenpeace, does not outshine his affinity towards technology. A school leaver at 16, he focused on writing computer programmes. At the heart of Octopus Energy’s robust operation is “Kraken”, a unique software designed for utilities, which the company licenses to fellow energy providers.
Known for its profound impact on climate tech, Octopus Energy serves as a testament to the UK’s unexpected proficiency in developing technologies aimed at reducing carbon emissions.
Recently, while visiting someone on the fifth floor of London’s County Hall, adjacent to the Thames and Westminster, I was struck by the liveliness of a bustling green tech workspace, reaching its capacity within just a year of opening. It’s a place buzzing with initiatives aiming to develop energy-efficient ‘smart air bricks’ and eco-friendly tyres for electric cars. The atmosphere at this site is a tangible expression of the UK’s commitment to advancing green technology.
Andrew Wordsworth, one of the forces behind Europe’s largest climate tech hub and co-founder of Sustainable Ventures, is expanding his eco-conscious start-up focus beyond London to cities including Manchester, Glasgow, and Birmingham. Since launching Sustainable Ventures in 2011, the company has seen an increase in climate tech investment in London from $177 million (2014) to $3.5 billion (2023), establishing the city as a global leader in the sector. Despite losing the top spot to Stockholm, London’s investment in climate start-ups contributed to 29% of the UK’s total venture capital investment in 2023.
While this might seem substantial, it constitutes a small part of worldwide clean energy technology investment, primarily in wind and solar power. Although start-up ventures carry the risk of failure, successful ones can revitalize traditional green technologies and generate numerous employment opportunities.
The UK’s status as the first major economy to legislate a net-zero emissions target do not seem to have secured it the prominent position in climate tech narrative that one might expect. While companies like Octopus employ 7,000 people globally including 6,000 in the UK and Sustainable Ventures has generated or sustained approximately 5,500 jobs since inception, more individuals appear to be aware of the British Prime Minister Rishi Sunak’s decision to relax a series of net-zero policies.
Despite the UK’s long-standing history of bipartisan support for climate action and the increasing adoption of green industrial policies across the EU and US, the UK’s climate policy successes seem to be overshadowed by narrative dominated by negative headlines—something Rachel Solomon Williams, the head of Aldersgate Group green business alliance, highlighted. Despite the pessimism cast by the headlines, she stands firm that the UK continues to make “brilliant” strides in the field of climate policy.
Suppose the UK’s climate technology has flourished even under current conditions. Yet, consider its potential should it gain full-fledged support from a government committed to net-zero action, rather than reluctantly engaging. This content is copyrighted by The Financial Times Limited, 2024.