Scott Dylan Calls for Urgent Action as Barclays Bank Identifies £1.5bn Climate Tech Funding Gap

Barclays Bank has raised the alarm over a £1.5 billion financing shortfall for growth-stage climate tech companies in the UK. According to their recent report, this gap threatens to derail the nation’s progress toward achieving its ambitious net-zero goals. In response, renowned entrepreneur and venture capitalist Scott Dylan has called for immediate government intervention, emphasising the critical role climate technology plays in the transition to a greener economy.

Speaking on the matter, Scott Dylan remarked, “Barclays has highlighted a very real problem. The lack of funding for climate tech firms at this crucial stage could delay the innovation we need to meet our environmental goals. If the UK is to maintain its leadership in sustainability, addressing this gap must be a top priority.”

Barclays’ report calls for the creation of a dedicated climate tech fund to support debt and equity transactions, ranging from £10 million to £25 million. The proposal aims to mobilise private capital and de-risk investments for companies developing technologies that could significantly reduce greenhouse gas emissions. However, Scott Dylan believes that more must be done to optimise the support provided by public finance institutions like the British Business Bank (BBB) and the UK Infrastructure Bank (UKIB).

“The current structure of our public finance institutions isn’t set up to meet the needs of climate tech innovators,” said Dylan. “There’s a clear need for more cohesion and strategic thinking. We need these organisations to align their efforts and work together if we’re going to fill the funding gap and support the growth of climate tech companies.”

Barclays highlighted that companies in the Series B+ stage face particularly high capital requirements and long lead times before profitability. Traditional investors often shy away from these ventures due to the perceived risks, leaving a critical gap in funding at a time when scaling these innovations is essential.

Dylan also called on the UK government to rethink its public finance strategy, urging them to establish guarantee schemes for climate tech companies to mitigate risk and attract private investors. He stressed the importance of ensuring public finance institutions have the expertise and resources needed to handle the specific challenges faced by climate tech firms.

“If we’re serious about tackling climate change, the government needs to step in and make sure these companies receive the right support. The potential for greenhouse gas reduction is enormous, but it won’t happen if we don’t provide the funding and expertise necessary to scale these solutions,” Dylan added.