SMEs in the Midlands and the North have received more than £ 50 million in environmentally friendly investments from the Midlands Engine Investment Fund and Northern Powerhouse Investment Fund, according to new figures.
The two investment bodies – British Business Bank Regional Funds – have helped small and medium-sized businesses reduce their carbon footprint and develop new technologies to combat climate change.
Since the two funds were launched, management has supported 45 companies in their plans to help the UK meet its net-zero targets.
Both organizations work with fund managers, councils, local corporate partnerships, growth centers, and public and private entities to raise funds from the funds and private investors.
It did so after the UK government agreed a revised target to cut national emissions by 78 percent by 2035 – which will come into effect at the end of June.
British Business Bank said several areas and sub-regions in the north and the Midlands had committed to meet the targets much sooner.
The Midlands region aims to lead the way in green growth and low carbon transition, particularly through its current work on developing sustainable solutions such as the East Midlands Development Corporation, free ports and an emphasis on offshore wind and hydrogen, battery technologies and carbon neutral transportation, decarbonization and carbon-free growth.
The commercial bank said the West Midlands Combined Authority estimates 21,000 new jobs could be created in the area over the next five years, or 92,000 by 2041.
The increased demand for renewable energy and low carbon technologies could also allow the Midlands to create a larger pool of 1.7 million new green jobs, half of which are likely to be in the Midlands, North and Scotland.
MEIF’s investment in support of the West Midlands low carbon agenda included a £ 250,000 financing package for Earth Rover.
The Shropshire start-up uses cutting-edge technology to help farmers improve crop yields and reduce food waste.
In the East Midlands, Lincolnshire-based Exuvi8, which specializes in designing and deploying energy efficient data centers, recently made £ 130,000 available.
Patrick Magee, British Business Bank’s Chief Commercial Officer, said: “With the British Business Bank Regional Funds, we are actively supporting companies that contribute to the UK’s low carbon agenda.
“In the Midlands, MEIF funding enables companies to develop and commercialize new sustainable technologies, become more sustainable or energy efficient, while helping a broader industry decarbonise.
“We intend to continue using both MEIF and NPIF to help green and sustainable businesses in the Midlands and North grow.
“We recognize the potential of these companies not only to help the UK move to zero, but also to create new jobs and economic growth.”
Sir John Peace, Chairman of Midlands Engine, said: “SMEs make up 99.6 percent of businesses in the Midlands.
“They are the lifeblood of our economy and will support the recovery of our region from the pandemic so that we can rebuild better, stronger and, above all, more environmentally friendly.
“They need to be empowered to be successful, and to do this, we are testing new sustainable finance models such as green bonds to unlock green sector finance and support our businesses.
“The Midlands Engine is the first national partnership in the UK to propose how stakeholders from across the region can come together to implement the government’s ten-point plan for a green industrial revolution.
“Our upcoming ten-point plan for green growth in Midlands Engine will allow us to develop our post-Covid-19 and post-EU economy in a sustainable way that also takes into account inequality and the agenda to improve levels .
“In this way we will effectively accelerate our and the UK’s path to net zero.”
The Midlands Engine Investment Fund project is financially supported by the European Union using funds from the European Regional Development Fund as part of the European Structural and Investment Funds 2014-2020 growth program and the European Investment Bank.