In June 2025, the United Kingdom officially launched its Modern Industrial Strategy, building on the foundations laid by the Invest 2035 Green Paper. This ten-year blueprint not only outlines the government’s ambitions to revive domestic industrial capacity but clearly signals the central role that clean energy technologies will play in shaping the country’s economic and environmental trajectory.
At its core, the strategy recognizes the environmental and clean energy technology sector as a dual engine, which vital for both economic growth and the UK’s climate commitments. Among the eight designated “growth-driving sectors,” clean energy industries receive particular emphasis, backed by targeted investment, policy incentives, and infrastructure support.
One of the most notable commitments is the plan to more than double investment in clean energy to over £30 billion per year by 2035. This move aims to not only reinforce the UK’s position as a clean energy superpower but also unlock significant levels of private capital in the coming decade.
The strategy outlines specific technologies that will drive this transformation:
- Offshore Wind: Building on its global leadership, the UK will continue expanding both fixed and floating offshore wind platforms.
- Nuclear Power: With projects like Sizewell C and the groundbreaking Spherical Tokamak for Energy Production (STEP) fusion initiative, nuclear will remain a pillar of long-term energy stability.
- Hydrogen: Backed by £500 million in government support, a national hydrogen network will be established from 2031 to strengthen decarbonization across industries.
- Carbon Capture, Usage and Storage (CCUS) and Greenhouse Gas Removals (GGRs): With £22 billion committed over 25 years, carbon capture clusters in Merseyside and Teesside will support heavy industry in cutting emissions.
- Heat Pumps: Accelerating their adoption is key to decarbonizing heating in residential and commercial buildings.
To support these sectors, the UK government is deploying multiple funding mechanisms:
- The newly formed Great British Energy (GBE) has been allocated £700 million to invest in clean energy manufacturing supply chains, extending earlier investments in offshore infrastructure.
- The National Wealth Fund will contribute at least £5.8 billion this Parliament to support strategic green sectors such as hydrogen, green steel and battery gigafactories.
- The British Business Bank has increased its investment scope to £25.6 billion, with £4 billion earmarked specifically for industrial strategy sectors including clean energy startups.
- The Clean Industry Bonus, starting with offshore wind, will reward developers who invest in domestic clean supply chains.
Barriers to green investment have also been addressed. From 2027, industrial electricity users in strategic sectors will benefit from up to 25% reductions in their electricity bills through exemptions from certain green levies. Additionally, the Connections Accelerator Service, launching by the end of 2025, will fast-track access to grid infrastructure, a common bottleneck for renewable developers.
Planning processes for transformative projects will also be streamlined, reducing lead times and accelerating the deployment of low-carbon technologies.
This strategy is deeply aligned with the UK’s broader Net Zero objectives: reducing greenhouse gas emissions by at least 81% by 2035 (from 1990 levels) and achieving a fully decarbonized power sector by 2035, subject to energy security considerations. The overarching goal remains clear, the Net Zero by 2050.
In sum, the UK’s Modern Industrial Strategy is more than an economic roadmap, it is a green industrial mission, harnessing public investment to catalyze innovation, manufacturing and sustainable growth. Clean energy is no longer a peripheral agenda. It is now the beating heart of the UK’s industrial future.
