The UK Cleantech Innovation Challenges programme was launched in 2026 to accelerate innovation in mission-critical areas to unlock the benefits of the UK’s clean energy economy. It aims to support the most pressing innovation needs for Carbon Budget 6 and beyond and grow clean energy industries where the UK has a competitive advantage.
This first challenge to be launched is the Carbon Management Innovation Challenge, focussing on accelerating the development, demonstration and commercialisation of innovative solutions for carbon capture and greenhouse gas removal. The challenge aims to halve the cost of direct air capture and point-source carbon capture across key UK applications (compared to 2025 benchmark costs), and establish a healthy UK ecosystem of large-scale greenhouse gas projects.
As part of this, DESNZ will establish a Carbon Management Innovation Challenge Coalition which will play a central role in further developing and adapting the challenge, shaping the activity of the challenge, driving delivery across industry and government, monitoring progress and supporting collaboration and knowledge sharing. DESNZ is now recruiting members for the Coalition, and all UK-based organisations with an interest in advancing cleantech innovation in the carbon management sector in the UK can apply.
DESNZ will also provide targeted support to a small cohort of high-potential technology developers with clear potential to support the challenge ambitions, known as Innovation Champions, who will receive a bespoke package of non-financial support for up to two years, to support their contribution to the challenge. A call for members of this cohort is expected to open in autumn 2026: in the meantime, prospective Innovation Champions are encouraged to express their interest in joining the Challenge Coalition to ensure they can engage with the challenge from the start.
Over a two-year period, the Challenge Coalition will drive action across government and industry to deliver innovation and monitor progress against the challenge ambitions, and DESNZ will support the Innovation Champions as set out above. This will culminate in a progress report on the UK Carbon Management Innovation Challenge by summer 2028, and in a review of next steps at that point.
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The Challenge Coalition is open to all organisations with an interest in advancing cleantech innovation in the carbon management sector in the UK. It is for organisations with a strong interest in innovation in carbon management technologies that would meaningfully engage with DESNZ and others across industry to contribute to achieving the challenge’s ambitions. This includes, but is not limited to, organisations such as:
- Technology developers
- Project developers and operators
- Manufacturers and critical service providers in technology supply chains
- Offtakers
- Industry bodies and trade associations
- Research organisations
- Academics and experts
- Investors
To be eligible to join the coalition, applicants must meet the following three criteria:
1. UK-based company or organisation, or otherwise demonstrating a strong interest in supporting cleantech innovation in the UK specifically;
2. Evidenced interest in one or more of the UK Carbon Management Innovation Challenge pathways;
3. Evidenced intention to meaningfully engage with DESNZ and others across industry as part of the coalition.
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Accelerate the development, demonstration and commercialisation of innovative solutions for carbon capture and greenhouse gas removal in the UK. This challenge will be delivered through three pathways, with intermediate milestones, to reach the following ambitions for 2040:
- Innovation to halve the cost of point-source carbon capture across key UK applications compared to 2025 benchmark costs.
- Innovation to halve the cost of direct air capture compared to 2025 benchmark costs.
- A healthy UK ecosystem of 10 or more commercial-scale non-CCS reliant engineered GGR projects of at least 20ktpa capacity, across a diverse portfolio of technologies, and with robust monitoring, reporting and verification.
This challenge statement is designed to set ambitious goals to accelerate the development and deployment of CCUS and GGR solutions. It will act as a tool for engagement across the public and private sector, a guide towards priority innovation needs, and a benchmark for measuring progress. The ambitions are not legally binding targets and will be kept under review.
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The Challenge Coalition will be expected to meet around four times over a period of up to two years. The first meeting is expected to be in Autumn 2026. Activities will include:
- Shaping the challenge’s activities, including influencing how the programme is delivered, and informing and shaping policy sprints;
- Driving action across industry, government and the wider carbon management ecosystem;
- Sharing knowledge and supporting the tracking of progress against challenge objectives. This will include helping to review and agree the monitoring framework, benchmark methodology and underlying model used to track progress against the challenge ambitions.
In addition, the Challenge Coalition will be invited by DESNZ to take part in other meetings and events according to the coalition members’ expertise and interests. This could be, for example, an invitation to attend a knowledge sharing session on latest research and developments in a particular technology area relevant to the challenge; an invitation to attend a pitch day with innovators testing market proposition or delivering pitches for investment; or an invitation to a match-making event helping to build relationships between technology developers looking to trial or deploy cleantech solutions and potential customers. Meetings are likely to be virtual but may occasionally be held in person.
The coalition’s activities will be supported by a secretariat and overseen by an independent Coalition Chair.
The independent chair will steer the work of the Coalition, facilitate collaboration across members, ensure a balanced range of perspectives are represented, and act as a champion for delivery of the challenge’s ambitions. The independent chair will be appointed at the discretion of DESNZ. Participation as the independent chair is on a voluntary basis – requiring an expected time commitment of three to four hours a month, to be discussed on appointment. DESNZ reserves the right to change the chair at any point. If you are interested in being considered for the role of chair, please indicate this in your expression of interest form.