£49m Raised by Clean Growth Fund to Support UK Net Zero Tech

Highlights
- Fund I’s portfolio projected to cut 55 million tonnes of CO2e by 2030, including companies like Sunswap, Rendesco, and Above.
- Targeted investments across six sectors: power, transport, industrial decarbonisation, buildings, agrifood, and circular economy.
Clean Growth Fund (CGF), the UK’s specialist climate tech venture capital firm, announced the first close of £49 million for its second fund, which targets £150 million.
This milestone highlights growing investor confidence in CGF’s track record and the strength of the UK climate tech ecosystem.
Investor support from both old and new backers
Two of CGF’s Fund I investors, including Strathclyde Pension Fund, have recommitted to Fund II. They are joined by new investors such as Islington and East Riding LGPS, showing strong endorsement of CGF’s disciplined, impact-led investment approach. This mix of existing and new investors reflects trust in CGF’s ability to deliver climate impact and commercial returns.
Read More: Climate Technology: The Path to Net Zero and Sustainability
Successful Fund I investments
Fund I supported 19 climate tech startups that are projected to reduce over 55 million tonnes of CO2e by 2030. Notable portfolio companies include:
- Sunswap – zero-emission transport refrigeration units, with orders from major firms like DFDS and Tesco.
- Rendesco – low-carbon ground-source heat networks, completing over 400 projects with a £100m pipeline.
- Above – using robotics, AI, and computer vision to improve solar plant performance, achieving 50% revenue growth since 2021.
Fund II strategy and focus areas
Fund II will continue CGF’s strategy of investing in early-stage UK companies developing technologies to reduce greenhouse gas emissions. Initial investments will range from £500k to £5 million, targeting six areas: power and energy systems, transport and mobility, industrial decarbonisation, buildings, agrifood and land use, and circular economy (waste and water).
Alignment with UK policy and regional engagement
The fund aligns with the UK Mansion House Compact, which encourages pension fund investments into high-growth sectors like climate innovation. CGF is expanding engagement with founders across the UK, including a Climate Tech Roadshow in Glasgow, connecting innovators, investors, and ecosystem partners with the CGF team.
Also Read: The Global Net Zero Movement: How Countries Are (and Aren’t) Getting There
Investor endorsements and credibility
Investors highlighted CGF’s combination of rigorous investment discipline, climate impact, and commercial focus. Legal advisors Pinsent Masons LLP also praised the team’s ability to bring investors and skilled management together to invest in a sector critical to the UK’s net zero ambitions.
Ends/
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Source: Clean Growth Fund












