Andrew Wordsworth, founder and CEO of Sustainable Ventures, sets out why the North West is already a key driver of the UK’s ‘green industrial revolution’ as the home to thousands of high-growth climate tech jobs. But he warns that a widening investment gap – particularly around AI – risks leaving the region behind just as the next wave of climate innovation takes hold.
The North West has always been a region that builds things. From the steam-powered mills of the 19th century to the advanced materials of today, our industrial DNA is rooted in the physical. As hardware climate innovation has a significant role to play in contributing to economic growth, this heritage can be used to our advantage.
Recent research from Sustainable Ventures, drawing on data from Beauhurst and Barclays, confirms what many of us on the ground already knew: the North West is a primary engine of the UK’s green industrial revolution. Home to nearly 5,000 (4,966) high-growth climate tech jobs, the region is carving out a global reputation for industrial decarbonisation, energy storage, hydrogen, and advanced materials.
This “green revolution” is bringing high value jobs, growth and wealth with the innovations developed in North-West labs becoming the engines of the northern economic revival.
However, despite our regional strengths, we are hitting a ceiling and we cannot run on ambition alone. To unlock the North’s full potential, we must address a widening regional investment gap, and crucially, integrate the intelligence of AI into the muscle of our manufacturing base.
The funding divide: beyond the M25 bubble
While the North West boasts the expertise, the infrastructure, and competitively priced space, the capital is not yet flowing at the scale required to meet our climate goals. The data reveals a stark reality: 66% of all UK climate tech funding in 2024 was concentrated in London.
For regions like the North West, Yorkshire, and the West Midlands, the challenge isn’t a lack of innovation, it’s a scale-up gap. Securing the finance and grants needed to move from a pilot project to a national infrastructure solution remains disproportionately difficult.
If we fail to fund the regions where the physical infrastructure of climate tech innovations is being built, the UK’s wider industrial growth and sustainability ambitions will stall. We need a national strategy that moves beyond the M25 bubble, boosting regional connections and ensuring that funding flows to the industrial heartlands where it can have an even greater impact. Seeking competitive advantages
The accelerator advantage: closing the productivity gap
One of the most telling findings in the Sustainable Ventures research is that the North West has one of the lowest accelerator and hub attendance rates in the country, at just 24%.
This is a missed opportunity. Accelerators are more than just shared workspaces; they are intensive growth engines. Start-ups that participate in these networks report significantly higher average valuations – £13.2 million compared to £12 million for those that do not.
By skipping the accelerator phase, start-ups in the North West are missing out on the mentoring, networking, and seed funding that turn a good idea into a market leader. This is precisely why the launch of the Sustainable Ventures Manchester hub in the iconic Renold Building was such a pivotal moment for the city.
Located in the heart of Sister – Manchester’s innovation district – this hub provides the physical and intellectual space for over 100 businesses to scale. It’s a living showcase of the North’s capabilities, even down to its construction, which utilised sustainable materials from pioneering local firms.
The missing link: AI for hardware
Perhaps the most urgent challenge highlighted by the research is the “AI divide”. In 2024, AI investment in climate tech surged to 36% of total UK climate tech investment. However, a staggering 96% of that investment went to software firms in the South East.
Because the North West’s strengths lie in hardware and manufacturing, we are currently being locked out of this AI gold rush. Hardware companies received just 4% of AI-related investment.
We must bridge this gap. Integrating AI into our regional manufacturing base should be a national strategic priority as it is a critical tool for:
- Optimising energy systems: Making our grids and storage solutions smarter.
- Accelerating prototyping: Using digital twins to test hardware before a single piece of steel is cut.
- Predictive maintenance: Reducing downtime in complex industrial decarbonisation projects.
By training hardware businesses to use AI, physical manufacturing will become more efficient, more bankable, and more competitive on the global stage.
A new lease of life for Northern innovation
The North West has the talent, the industrial legacy, and now the dedicated space to lead the green transition. But to turn 5,000 jobs into 50,000, we need the financial and strategic support to match our ambition. It is time for the UK’s investment landscape to look North, where the real work of the green industrial revolution is being done.