What the UK’s Climate Innovators Want from Government Now

We are entering a new era of climate policy, one defined not by abstract targets or sectoral wish lists, but by geopolitical pressure, capital flight and rising public scepticism. The narrative is shifting. Net zero is no longer enough. National security, economic resilience and industrial strategy are now the defining frames.

It’s clear that the climate transition cannot be delivered by Government alone. What it can and must do is create the policy, regulatory, and financial certainty that allows the UK’s most credible innovators to build, test, scale and lead.

Tech Nation believes that climate policy should be collaborative. Whether you’re navigating climate tech as an entrepreneur, investor, engineer or system-builder, those forces need to work together to deliver scalable solutions. These are the actors with the most grounded understanding of what’s technically possible, what’s commercially viable and what’s blocking the path to progress.

We’ve taken the lived insights of leading climate founders, growth-stage companies, investors, policy specialists and technologists working across clean mobility, energy systems, nature restoration, circular materials and seven more key sectors. Their message is clear: if government wants green growth, it must build with, not for, those scaling the future.

The following recommendations are not theoretical. They are practical, urgent and aligned with a single goal: delivering infrastructure that works.

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Policy Priorities by Sector

We’ve identified the regulatory barriers holding back UK climate progress across 11 sectors and propose tangible, targeted reforms. Here are our top insights and policy asks from each:

Regenerative Agriculture

To mainstream regenerative farming, the UK needs:

• Outcome-based definitions of regenerative practices (i.e. for soil health, increased biodiversity, enhanced water quality, greater climate resilience).
  
• Simplified and scalable MRV systems (Monitoring, Reporting, and Verification), combining remote sensing with on-the-ground verification.
  
• Targeted subsidies aligned with ecological impact, not just land area.
  
• Routes to monetise improvements in yield, nutrition and soil carbon beyond government schemes.
  

Nature Restoration and Finance

Nature-based solutions can’t scale without stronger investment and institutional capacity. Key enablers include:

• Blended finance tools (e.g. asset-backed securities, pooled capital) to unlock private investment.
  
• Expanded standards bodies (like carbon and biodiversity codes) with funding and international alignment.
  
• Nature ratings frameworks to improve risk transparency for investors.
  
• Government support for early-stage project development and MRV baselining.
  

Energy Systems & the Grid

Britain’s grid is modernising but not fast enough. Priority reforms include:

• Planning and permitting reform to accelerate clean energy projects.
  
• Extension of Contracts for Difference (CfDa) to support life extension of renewables and emerging technologies.
  
• Price signal reform, particularly decoupling electricity prices from gas.
  
• Incentives for grid flexibility and integration of hydrogen, storage and digital networks.
  

Grid Flexibility & Consumer Energy Tech

Unlocking household and SME participation in energy markets requires:

• Clear market access for demand-side technologies (e.g. batteries, heat pumps).
  
• Tax-efficient investment vehicles for shared ownership models (e.g. SPVs for domestic tech).
  
• Greater certainty in standards and building regulations.
  
• Non-dilutive finance and pilot-to-scale support for flexibility innovators.
  

Home Decarbonisation

Retrofit remains too costly, confusing and unattractive for most homeowners. Fixes include:

• Green loans or property-linked finance models to overcome upfront costs.
  
• Trusted quality assurance schemes and installer upskilling.
  
• Simplified consumer journeys with visible savings and desirable outcomes.
  
• VAT reform and subsidy alignment between retrofit and new build.
  

Mobility & Transport

The UK’s mobility innovators struggle with scale-up capital and long-term vision. Needed:

• A dedicated public-private scale-up body.
  
• Faster clarity on phase-out timelines for combustion and hybrid vehicles.
  
• Support for domestic supply chains linked to EV and battery manufacturing.
  
• Policies ensuring mobility access for low-income communities.
  

Biotech & Future of Food

Biotech and alt-protein companies face major regulatory and infrastructure barriers:

• Faster approvals via a “climate track” within the FSA.
  
• A national platform connecting startups with fermentation and lab capacity.
  
• Consumer education campaigns to build trust in novel foods.
  
• Expansion of innovation sandboxes and adaptive regulatory models.
  

Circular Economy

Policy must evolve from recycling to reuse. Priority shifts include:

• EPR schemes that directly fund reuse infrastructure (not just waste management).
  
• A UK-wide digital product passport framework.
  
• Tax reform to reflect actual environmental impact of materials (e.g. compostables vs plastics).
  
• National alignment of local reuse and refill systems.
  

Built Environment

Whole-life carbon needs to be a core requirement across planning, construction and finance:

• Mandated assessments at planning stage for all major developments.
  
• Incentives for low-carbon materials and regenerative construction.
  
• Equalisation of VAT and stamp duty to support retrofit and green upgrades.
  
• Financing models tied to asset performance, not just asset class.
  

Engineered Carbon Removals

High-integrity removals remain stuck in a credibility and finance gap:

• Advanced market commitments (from public or private sectors).
  
• Integration into compliance markets like the UK ETS.
  
• Clear rules for permanence and liability.
  
• Infrastructure support for storage, transport and MRV.
  

Regenerative Fashion & Textiles

The fashion sector needs a level playing field and a system overhaul:

• Eliminate import tax loopholes that favour fast fashion giants.
  
• Mandate EPR for textiles with ring-fenced funds for circular innovation.
  
• Deploy digital product passports tied to harm-based taxonomies.
  
• Incentivise onshore repair and reuse infrastructure.

The Future of UK Climate Tech 

The UK has deep strengths in climate innovation, from advanced research to entrepreneurial depth, but faces a growing credibility gap. We’re increasingly seeing exciting climate tech startups, but stronger regulation, smarter finance and policy frameworks are needed to reflect the realities of innovation, and turn those strengths into global, sustainable leadership.

The climate crisis is no longer a future risk, it is a present reality. The cost of inaction is rising, and investors, innovators, and international markets are watching.  But within it lies a generational opportunity: to make the UK the most investable climate tech ecosystem in the world, and to build an economy rooted in resilience, regeneration and shared prosperity. While many of the problems identified are well known, they are now backed by direct, detailed solutions from those building the future.

Click here to uncover the full report, including sector deep dives, policy priorities and solutions to accelerate climate progress in the UK.