Scaling power solutions to reach net zero emissions by 2050 requires significant financial support, speakers at the London Climate Technology Show 2024 emphasised.
However, a running theme of the various panels on carbon capture, grid efficiency and decarbonising buildings was a consistent lack of investment from both private investors and governments.
In the carbon management sector, Teele Niidas, CMO of sustainable carbon material producer UP Catalyst, pointed to over-regulation as the biggest barrier to investment.
“Trillions are being invested into technologies like AI, but we need to see this money going into the utilisation of carbon capture with clear pathways to returns,” she said.
The redirection of funding was also emphasised by Celestine Cheong from the UK Atomic Energy Authority. “About $7bn has been invested in the fusion sector altogether. I would like to compare that to the fossil fuel subsidies of $7trn. If you are serious about fusion, that is a massive difference.”
German politician and former commissioner for green hydrogen Stefan Kaufmann echoed the call for funding. “We need investment for hydrogen corridors, especially as we are competing with natural gas. Unfortunately, people like to buy products produced with green energy but aren’t willing to pay the green premium.”
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By GlobalDataCollaboration between the public and private sectors was cited as a key driver to accelerate the energy transition.
“I think most of the transition has to be funded privately, but policy is the key to unlocking that investment,” said Sarah Mackintosh, director of Cleantech for UK. “The private sector needs the right policy framework and market signals from the policies to be confident to invest.”
Cleantech for UK is an advocacy group that helps grow private and public investment in clean energy technology. Calling for a “clearly structured public funding path to help leverage private financing”, Mackintosh added: “We see a real gap when clean tech is trying to commercialise and that is partly because government funding isn’t clear.”
With its $1bn Climate Innovation Fund, Microsoft is working to fund and deploy climate and power innovations globally. Director James Lockyer provided hope for the industry’s investment landscape, explaining: “We have invested in around 60 companies since we launched in January 2020, across grid transmission, low-carbon steel and batteries. It is a healthy and growing sector.”
