IEA report spurs governments to support clean energy start-ups

The International Energy Agency (IEA) has released a new report highlighting recent government initiatives that drive policy action and support SMEs to meet the net zero challenge.

The report, How Governments Support Clean Energy Startups, covers 14 detailed case studies and in-depth interviews.

Through these examples, it presents a range of policy measures from diverse countries.

It places focus on four core types of support governments can offer, including financing, infrastructure, services and networking.

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Eight key insights were identified by the report, each offering effective policy measures to support clean energy start-ups:

1. Maximise what you already have.
   This extends to existing public infrastructure, expertise, networks, reputation and programmes.
2. Take a global outlook.
   The report encourages governments to attract applicants from around the world that might be able to solve local challenges. Creating such links would thus accelerate their paths to overseas markets and finance.
3. Channel the right money at the right time.
   Start-ups tend to be in continuous danger of running out of capital. Application processes for public funds can exacerbate this. Grants, loans, guarantees and equity can benefit both the start-up and the public sector if differentiated by the needs of different technologies and maturities.
   
4. Support peer-to-peer networking.
   This refers to the earliest stages of maturity. Networking can be a cost-effective means of encouraging knowledge-sharing and should be in addition to supporting other networks.
5. Publicise innovators and raise awareness.
   Leverage the public sector’s trusted reputation to reach and attract the interest of informed stakeholders and inspire the public.
6. Focus support on priority technology areas.
   In line with identified national or regional technology needs, target resources alongside broader calls for interest that reveal the strengths of the innovation ecosystem.
7. Establish milestones and provide regular feedback on progress.
   Expert guidance can come at a high cost for young companies. However, it can save significant resources if it prevents missteps or delays.
8. Offer single access points for multiple support measures.
   Help start-ups to navigate the wide and sometimes bewildering range of public support available locally and internationally.

The IEA’s full report is available here.