Freeport East signs deal to boost funding for green businesses

Why it matters: The partnership comes as access to capital becomes an increasingly severe constraint for small businesses outside London, particularly in the clean energy and sustainability sectors. This initiative could help bridge that funding gap in the East of England.

The big picture: The memorandum of understanding between Freeport East and greenCrowd will:

• Create a new investment fund focused on sustainable businesses
• Support companies working in renewable energy and carbon reduction
• Provide commercial and technical support to help businesses scale up
• Connect local firms with universities and research institutions

By the numbers:

• Freeport East is expected to create 13,500 new jobs
• The organisation aims to generate £5.5bn in economic value over 10 years
• It has already allocated over £980,000 in investment funding to local businesses

What they're saying: Steve Beel, CEO of Freeport East, said: "Numerous studies have demonstrated that, outside of London, capital becomes an increasingly severe constraint on the ability of SMEs to reach their full potential. Unless we resolve this, we will not deliver on net zero and the growth this country needs."

Between the lines: The partnership aims to address historical disparities in investment by embedding commercial and technical support outside traditional financial hubs, creating new opportunities for businesses across the East of England.

What's next: The Greencrowd Impact Fund is planned to launch in 2025, subject to regulatory approvals. The fund will target businesses working in:

• Renewable energy
• Energy efficiency
• Sustainable agriculture
• Circular economy practices
• Carbon reduction
• Water management

The bottom line: This collaboration represents a significant step in supporting green innovation in Suffolk and Essex. However, the planned funding mechanisms, including the 2025 launch of the Greencrowd Impact Fund, remain subject to necessary regulatory approvals.