Government boosts industrial net‑zero innovation with £7 million funding

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The UK government is advancing industrial decarbonisation through the latest phase of the Industrial Energy Efficiency Accelerator (IEEA). On 10 December 2025, the Carbon Trust announced that thirteen industrial projects received a combined £7 million in grant funding through phases three and four of the IEEA, delivered in collaboration with Jacobs and Innovate UK Business Connect under the Department for Energy Security and Net Zero’s Net Zero Innovation Portfolio.

These projects showcase innovation across a wide range of sectors, including metalworking, food equipment cleaning, brewing heat recovery, road resurfacing in situ, and recycling textiles and plastics. With advanced technologies such as heat recovery systems, efficient cleaning methods, sensors, AI and robotics, these demonstrations aim to significantly reduce energy use, enhance resource efficiency, and cut carbon emissions. The Carbon Trust estimates a potential saving of 4 million tonnes of CO₂ equivalent over the next ten years.

Since its inception in 2018, the IEEA has delivered substantial investment and support for industrial innovation. To date, it has mobilised over £28 million in combined public and private funding across 30 projects, with grant contributions typically covering 40–60% of costs. The programme continues to serve as a key instrument in accelerating low‑carbon technology uptake in UK industry, reinforcing competitiveness while supporting net‑zero goals.

What this means:
These new grants mark a significant step in the government’s pursuit of cleaner industrial processes. The interventions promise both environmental and productivity gains by deploying cutting‑edge efficiency solutions across varied sectors. Importantly, the Carbon Trust’s decade‑long projections show that these innovations could substantially lower emissions without altering target figures while stimulating technological advancement and market potential.

However, achieving meaningful impact depends on scaling these demonstrations. Wider adoption across industry will require sustained funding, cross-sector collaboration, and the integration of successful solutions into standard practice. If effectively deployed at scale, these projects could drive meaningful progress toward the UK’s industrial net‑zero objectives.

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