Region 's cities top 'cleantech ' investment list
Midland cities Birmingham and Coventry both feature on a list of top UK locations for 'cleantech ' foreign direct investment (FDI) in 2020, according to new analysis by EY.
The firm 's research found that the UK was Europe 's second most popular location for FDI-backed clean technology projects in 2020.
Topping the table for UK cities was London with 11 projects, Europe 's single biggest city for cleantech project numbers in 2020.
However, Birmingham and Coventry attracted two projects apiece, along with Grimsby and Scarborough. Only Aberdeen (four) was home to more projects.
The UK as a whole attracted 59 cleantech projects in 2020, which was 17.1 per cent of all such European projects, and behind only Germany 's 67 projects (19.4 per cent of the European cleantech market).
Cleantech accounted for 6.1 per cent of all UK foreign direct investment (FDI) supported projects in 2020, in line with the equivalent European figure of 6.2 per cent..
Cleantech projects included in the survey are those which include investment in energy transition, biodiversity, sustainability and the pursuit of net zero targets.
Simon O 'Neill (pictured), office managing partner at EY in the Midlands, said: “Clean technology and sustainability are important economic drivers in the Midlands and it 's welcome news that both Birmingham and Coventry have attracted cleantech investment projects.
“Earlier this year, the Midlands Engine set out its 'Ten Point Plan for Green Growth ', with a unified voice and a collective plan to accelerate the Midlands ' pathway to Net Zero. The region 's businesses have a significant part to play in this process, driving investment and strategy and supporting job creation in this area.
“The UK is in an encouraging place on green investment, with cleantech project numbers keeping pace with the UK 's overall FDI performance.
“The UK is also performing better on cleantech than perceptions might imply - our regular UK Attractiveness Survey has shown that while investor support for UK cleantech has grown significantly in recent years, Europe is still more likely to be perceived as a leader in this area.
“With scope to improve investor perceptions, the UK has a solid foundation from which to accelerate its cleantech performance. The government has the opportunity to set out how it will do this with its forthcoming 'Net Zero Strategy '.
“UK cleantech acceleration is vital. This is a priority area for investors and the UK may struggle to meet its climate commitments without coordinated cleantech investment.
“Crucially, our research also suggests cleantech investment can also help level-up the UK economy. ”
Across Europe, cleantech investment is centred on the utility supply sector (60 projects, 18 per cent of the market), the machinery and equipment sector (34 projects, 10 per cent of the market), and the electronics sector (32, nine per cent of the market).
In the UK, 20 per cent of projects (12) were in the utility supply sector, followed by 15 per cent (nine) in the machinery and equipment sector.