
The UK cleantech sector closed 2025 confirming a structural weakness long
associated with British industry: the country develops promising technologies
and struggles to retain them at the point of scale.
But 2025 revealed something more serious than that familiar pattern.
Early-stage investment contracted sharply. Seed and Series A deal activity fell by 50 per cent to 94 deals, the lowest level since before 2020. The pipeline that produces the companies the UK has historically struggled to scale is itself narrowing. Without intervention, there will be fewer domestic technologies capable of reaching commercial maturity in the years ahead.

With strategic investment in diverse clean technologies, smart regulation that enables innovation and bold institutional backing that keeps British aerospace excellence at home, the UK can shape the future of flight. The prize is substantial: economic strength, regional growth and global competitiveness with the added benefit of supporting net zero.
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This report builds on the findings of 2023, reviewing the UK’s progress in cleantech innovation, investment, and policy within an evolving global context. It also looks ahead to 2025, identifying the actions needed to maintain the UK’s competitive edge and strengthen its role in the global transition to a low-carbon economy
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