The Department of Energy Security and Net Zero is asking for industry input on developing a so-called ‘Climate Innovation Pull Facility’.
It says, “Through pull finance, this facility will support innovation, scale up and market building for climate change mitigation solutions for developing country contexts”. The £170 million facility would be part of the Department’s International Climate Finance portfolio and funded with Official Development Assistance (ODA), focusing on innovative clean energy technologies and business models in a small number of specific applications. The facility will have a particular focus on clean energy innovation themes and the work would be linked to the Ayrton Fund commitment.
Interested parties can sign up by 24 July for an online market engagement event on 26 July 2023 where the Department will share its current thinking on the scope and content of the programme as well as options for commercial structuring and forward procurement.
A “pull mechanism” is intended to incentivise for innovators by creating viable market demand using mechanisms such as advanced market commitments, results or outcomes-based financing, challenges, innovation bulk procurements or contracts for difference.
Link to the meeting registration here.