Scaling UK climate tech: the catalytic impact of Barclays Climate Ventures’ investment
Steven Poulter, Head of Barclays Climate Ventures
02 June 2025
The UK, home to a thriving climate tech ecosystem of over 5,000 start-ups and scale-ups1, is well placed to capitalise on the sector’s potential, deliver sustainable economic growth and create jobs at scale across the UK.
The sector is growing at pace – the UK’s top 1,000 climate tech companies were valued at £26bn in 2023, double that of 20202 – and climate tech companies are confident this will continue. 89% of the UK-based climate tech companies surveyed by Barclays said they were confident about the future prosperity of their business in the UK over the next three years3.
In today’s rapidly evolving landscape where we’ve seen renewed focus on energy security, abundance and affordability, there is an emerging opportunity set and scope for impact for climate tech.
New climate tech is needed to improve the resiliency of the energy grid, increase energy efficiency, and diversify energy supply, including the provision of alternative energy sources for sectors of the economy where energy demand can’t viably be met through electrification, such as aviation.
From utility-scale batteries to real estate retrofits, hydrogen fuel cells and more, climate tech is key to delivering the next generation energy system, addressing the climate challenge whilst supporting a successful and growing economy with affordable and resilient energy, which we know our customers and clients need.
Across Barclays, we work with climate tech founders at the frontline of this transformation and significant commercial opportunity. It is through these relationships that we have insight into the challenges holding back climate tech companies’ ability to scale and realise their potential – most notably, the financing gap which is stunting their growth.
Climate tech companies are often capital expenditure-intensive, with high upfront investments required in plant and equipment. Consequently, they have a longer and riskier path to profitability than, say, software companies. This dynamic has created a ‘missing middle’ of financing – the increased funding needs prior to commercialisation do not appeal to traditional venture capitalists, whilst simultaneously being viewed as too small and risky by infrastructure funds.
Barclays Climate Ventures exists to help address this challenge, playing a distinct role in scaling up innovative climate tech globally.
£203m invested
Barclays Climate Ventures has enabled half a billion pounds of climate tech investment since 2020, investing £203m of Barclays’ equity and enabling a further £305m of third-party investment through leading or co-leading rounds.
£1 to £2.18
In rounds led or co-led by Barclays, every £1 of Barclays Climate Ventures investment enabled a further £2.18 from third parties
1,309 jobs created
1,309 jobs created by the Barclays Climate Venture portfolio companies, including 664 across the UK.⁴
By providing investment to help fill this financing gap we hope to crowd in further capital, accelerating the growth of climate tech from idea through to IPO and beyond, collectively supporting the UK’s energy transition and economic growth ambitions.
About the author
Steven Poulter is the Head of Barclays Climate Ventures; whereby Barclays is investing £500m by 2027 in the equity of innovative climate tech companies. He sits on the board of numerous climate tech companies including LuxWall, ELM Mobility and Sustainable Ventures, as well as being a Director of BGF Group PLC, the UK based growth stage investor. Since joining Barclays in 1999 Steven has held various positions in London, Hong Kong and New York in the Investment bank and head office. Steven has a degree in Economics from Queens’ College, Cambridge University, and qualified as a chartered accountant and chartered tax adviser at Arthur Andersen.
We also provide financial services to a range of sectors including high-emitting industries such as oil and gas. We’re working to reduce the emissions we finance and support clients in the transition; for more information visit home.barclays/climatechange.
Footnotes
2. https://startupcoalition.io/news/2024-climatetech/
3. Barclays Business Prosperity Index, January 2025
4. Impact reporting statistics, including data on jobs and emissions, have been reviewed and calculated by the Carbon Trust, using data up to October 2024
