A Manifesto* to Drive Innovation in the North East: A Path to Competitiveness via Decarbonisation

Introduction

The North East of England has long been defined by its industrial legacy and persistent economic challenges. Whilst other regions have benefited from innovation-led growth, the North East continues to struggle with limited access to early-stage capital [see comments for a link to an earlier post on this topic] and an economy heavily reliant on traditional industries. However, the UK’s commitment to Net Zero by 2050 and the increasing prioritisation of Environmental, Social and Governance (ESG) principles provide an opportunity to transform the region into a hub of sustainable innovation and economic resilience.

An #EraOfOpportunity

Before jumping-in, it is critical to distinguish between Net Zero and Decarbonisation. While Net Zero focuses on balancing emissions through offsets, Decarbonisation prioritises the elimination of emissions at the source. This manifesto argues that for the North East to play a leading role in the UK’s Clean [and Just] Transition, it must move beyond Net Zero’s compensatory mechanisms and drive deep decarbonisation in its industries, energy systems and supply chains.

1. Driving Innovation in Clean Technologies

The North East’s industrial economy must transition to a low-carbon innovation hub by fostering technologies that eliminate emissions at their source rather than relying on offsetting mechanisms.

Key Priorities:

• Industrial Decarbonisation: Support research and adoption of low-carbon industrial processes in steel, chemicals and logistics, thereby reducing emissions from high-pollution sectors;
• Energy Innovation: Invest in renewable energy R&D, with a focus on offshore wind, green hydrogen and energy storage technologies;
• Material Science & Circular Economy: Fund innovations in sustainable materials (e.g., low-carbon cement, biodegradable plastics) to decarbonise supply chains; and
• AI for Decarbonisation: Promote AI-driven predictive analytics for energy efficiency, real-time emissions tracking and industrial optimisation.

✅ Action: Establish a North East Decarbonisation Accelerator to fund startups developing deep decarbonisation solutions.

2. Creating Clean Jobs & Economic Resilience

Net Zero policies must also ensure a Just Transition that creates high-quality employment opportunities whilst eliminating emissions. The North East is well-positioned to lead in clean job creation across multiple industries.

Key Priorities:

• Renewable Energy & Grid Modernisation: Scale up employment in offshore wind, green hydrogen and microgrid projects;
• Sustainable Transport & Logistics: Develop skills in hydrogen trucking, electrified rail and AI-driven logistics to decarbonise transport;
• Building & Retrofitting: Train workers in energy-efficient construction, heat pump installation and insulation technologies; and
• Agricultural & Land Decarbonisation: Incentivise regenerative farming and methane reduction in agriculture.

✅ Action: Launch a Clean Skills Fund to retrain North East workers for high-paying, low-carbon industries.

3. Scaling Investment in ESG & Decarbonisation Startups

A key barrier to decarbonisation in the North East is the lack of early-stage capital for deep-tech and ESG-aligned startups. While the UK’s Net Zero Innovation Portfolio (£1 billion fund) provides national support, more region-specific investment is required.

Key Priorities:

• Regional Clean Investment Funds: Create public-private investment funds that co-invest in early-stage startups working on industrial decarbonisation and clean energy;
• Incentivising Clean Capital: Enhance SEIS/EIS tax incentives for investors backing Net Zero and Decarbonisation startups in the North East; and
• Public Procurement for Startups: Ensure that government contracts prioritise ESG-aligned businesses, thereby driving demand for sustainable solutions.

✅ Action: Establish a North East Clean Venture Fund, ensuring long-term capital availability for cleantech entrepreneurs.

4. Decentralising Energy & Local Clean Energy Projects

The current UK Net Zero strategy relies heavily on large-scale projects (e.g., offshore wind, nuclear), but regional clean energy solutions remain underdeveloped. The North East can lead by decentralising energy generation and fostering community ownership of renewables.

Key Priorities:

• Microgrids & Energy Storage: Support the development of battery storage systems and local energy grids to ensure energy security and reduce reliance on fossil fuels;
• Community-Owned Renewable Energy: Enable local businesses and communities to co-own solar, wind and green hydrogen projects; and
• Demand-Side Response: Implement smart energy demand systems that adjust power usage dynamically, reducing emissions.

✅ Action: Create a North East Clean Energy Fund to provide targeted support for microgrid and energy storage startups.

5. Accelerating the Net Zero & Decarbonisation Timeline

While UK government policy sets Net Zero 2050 as the ultimate goal, recent policy delays (e.g., pushing back the petrol and diesel car ban to 2035) risk slowing progress. The North East should take the lead in accelerating decarbonisation timelines at the regional level.

Key Priorities:

• Zero-Emission Transport by 2030: Support electrification of public transport and freight, thereby pushing beyond national targets;
• Heavy Industry Carbon Pricing: Introduce a regional industrial emissions cap to force faster decarbonisation in high-pollution sectors; and
• Mandatory ESG Reporting: Require all North East businesses over a certain size to report [at the very least] their carbon footprint and decarbonisation strategies.

✅ Action: Establish a Regional Net Zero & Decarbonisation Policy Hub to push for more ambitious climate policies in the North East.

Summary & Call to Action

The North East has the potential to be a national leader in Decarbonisation and Net Zero innovation, but urgent action is needed. This Manifesto outlines the key strategies required to:

1. Foster deep Decarbonisation technologies instead of relying on carbon offsets;
2. Create high-paying clean jobs in renewables, transport and industry;
3. Secure more regional investment in ESG and Decarbonisation-aligned startups;
4. Empower community-led clean energy projects rather than centralised infrastructure; and
5. Accelerate emissions reduction timelines beyond national Net Zero commitments.

Call to Action

To make this vision a reality, policymakers, investors and business leaders must:

• Commit to regional Decarbonisation goals BEYOND Net Zero;
• Invest in startups and infrastructure that eliminate emissions at the source;
• Incentivise AI and emerging tech to drive real-time carbon reduction; and
• Develop a regional policy framework that mandates ambitious decarbonisation targets.

By taking bold and decisive action, the North East can position itself as a pioneer of the UK’s low-carbon future, driving economic resilience, sustainable growth and climate leadership on a National - and Global - scale.

The time to act is now!