Investment needs for UK clean energy

According to new research from Santander and Standard Life, the UK's clean energy ambitions demand an investment exceeding £500bn by 2040. This translates to an average of roughly £40bn per year, a level of funding that may put pressure on traditional financing structures. The report identifies five proposed solutions to tackle these barriers: credit enhancement guarantees, blended finance, aggregation, standardisation, and enhanced collaboration among banks, institutional investors, project developers, and Public Finance Institutions. David Murray, a partner at Marks & Clerk’s Glasgow office and member of the firm’s Energy & Environment leadership team, highlighted that “the report suggests there is a need for alternative finance tools to ensure investment is deployed efficiently,” emphasising the importance of finance structures that can facilitate this transition.

Murray further explained the critical connection between intellectual property (IP) and investment. He noted that “patents provide clearer pathways for investors to improve return on investment,” as they signal scalability, competitive advantage, and long-term commercial potential. Patents are not only legal safeguards but also enhance investor confidence in achieving desired returns. Additionally, the UK Government's Patent Box scheme—where profits linked to patented inventions receive a corporation tax reduction—and the option of using IP as collateral for loans highlight the evolving role of IP in the drive toward cleaner energy solutions.