Connect with us

Hi, what are you looking for?

UK-based Carbon Trust and General Electric have launched a $5 million clean tech business incubator fund.

Clean Power

Carbon Trust, GE Launch $5-Million Clean Tech Business Incubator Fund

UK-based Carbon Trust and General Electric have launched a $5 million clean tech business incubator fund.


The UK-based Carbon Trust announced today it would work with General Electric (GE) to establish a $5-million business incubator fund designed to boost low-carbon infrastructure technologies. The fund is targeted toward European clean tech start-up businesses, and will not have a cap on the size of possible investments.

Both companies will work together during the initial 18-month partnership to selectively identify promising companies, offer management advice, and allocate capital funding. Carbon Trust will administer the program, and the funding will come from GE’s $200 million ecomagination Challenge. GE has committed $134 million from the fund to date in start-up investments and commercial partnerships across the globe since it launched in 2010.

Carbon Trust is a non-profit organization that provides guidance and finance to businesses seeking to reduce carbon emissions reductions, and says it has helped its customers prevent 38 million tons of carbon emissions and save £3.7 billion in energy costs.

“Clean tech has the capacity to be a strong growth driver for Europe given its strong research capability and track record,” said Tom Delay, chief executive of Carbon Trust. “However, there is increasing evidence that other parts of the world are catching up and overtaking the region.”

Recent data seems to support the imperative for new sources of clean tech capital in Europe. In 2007, 42 percent of the world’s clean energy investment took place in Europe, compared to just 25 percent today, according to a recent report from Bloomberg New Energy Finance. By comparison, Asia Oceania has nearly doubled its share of clean tech investment during the same period, and North America accounted for almost 66 percent of total clean tech venture capital investment during fourth quarter 2011.

Austerity measures by governments across Europe have also taken their toll on the clean tech industry. Renewable energy powerhouses like Germany, Spain, and the United Kingdom have all recently announced feed-in-tariff reductions, and Carbon Trust will lose its core government grant funding this April.

Cutbacks may be most acute in the UK, but could ironically create partnership opportunities for the private sector. GE’s Innovation Barometer, a survey of 2,800 businesses in 22 global markets, found one of two businesses saw the UK as a challenging environment for innovation but 84 percent of UK businesses said partnerships and collaboration with a combination of organizations was key to success. And, almost 90 percent of UK businesses think start-up businesses can maintain their innovative edge as bigger companies – provided they receive seed funding and business support.

Considering this environment, GE’s funding could be a shrewd investment in the future of Europe’s clean tech industry. “We are increasingly focused on identifying new businesses, technologies, and human talent in this area,” said Mark Elborne, chief executive of GE UK. “GE sees the business benefit but also the potential these new technologies offer in delivering overall economic growth and improved resource efficiency.”

Source: BusinessGreen
Image courtesy of GE ecomagination

Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By

Silvio is Principal at Marcacci Communications, a full-service clean energy and climate policy public relations company based in Oakland, CA.


You May Also Like

Clean Power

California is proceeding with a plan to install up to 25000 MW of electricity from offshore floating wind turbines by 2045.

Clean Power

Virginia is going from near-zero wind power to 2.6 gigawatts all at once, with the approval of a new offshore wind plan for Dominion...

Clean Power

Manufacturing costs and logistics are two challenges to rapidly integrating more renewable energy into the U.S. power system. This is especially true for tall...

Clean Power

Height is might when it comes to wind turbine towers. The taller they are, the more energy they can harness. Transporting massive tower components...

Copyright © 2022 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.