Scott Dylan Joins Barclays Bank in Urging UK Government to Close £1.5bn Climate Tech Funding Gap
Barclays Bank’s recent report on climate technology financing has sent ripples through the investment community, as the bank calls for government intervention to address a £1.5 billion shortfall for growth-stage climate tech companies. Scott Dylan, founder of NexaTech Ventures and co-founder of Inc & Co, has joined the conversation, advocating for immediate action to ensure the UK meets its ambitious net-zero goals.
“Barclays has laid out a clear picture of what’s at stake,” said Dylan. “Without adequate funding, many climate tech companies won’t be able to scale. This is not just a financial issue; it’s about the future of our planet. The government must act now to close this gap and ensure that these companies can thrive.”
According to Barclays, there is a notable lack of Series B+ funding for climate tech firms in the UK, particularly those developing innovative solutions to reduce or remove greenhouse gas emissions. While early-stage funding has been relatively strong, growth-stage companies, which require substantial capital for scaling, are struggling to attract investment.
Dylan believes this gap in funding presents a significant risk to the UK’s ability to maintain its leadership in the green economy. “We’re at a crossroads,” he explained. “The UK has a wealth of talent and innovation in the climate tech space, but without the necessary financial backing, we’re leaving too much potential on the table.”
Barclays has recommended the creation of a dedicated climate tech fund, focusing on transactions between £10 million and £25 million to support companies as they move from innovation to commercialisation. Scott Dylan supports this initiative but also emphasises the need for structural changes in how the UK’s public finance institutions operate.
“We need to rethink the way public finance supports climate tech,” Dylan said. “The British Business Bank and UK Infrastructure Bank have critical roles to play, but they must be properly resourced and aligned. These organisations should collaborate more effectively to maximise their impact.”
Dylan also called for the implementation of guarantee schemes aimed specifically at climate tech firms, which would help attract private capital by mitigating risk. He believes that with the right financial infrastructure in place, the UK can lead the world in scaling the green technologies needed to combat climate change.
“Climate tech is our future, and the funding gap Barclays has identified is a wake-up call. We cannot afford to be complacent. The time for action is now, and I’m urging the UK government to take the necessary steps to close this gap,” Dylan concluded.