Question
To ask the Secretary of State for Energy and Climate Change pursuant to the statement of 9 December 2009, Official Report, columns 359-71, on the Pre-Budget Report, what criteria apply in respect of eligibility for financial support from the (a) Innovation Investment Fund and (b) Carbon Trust's Venture Capital Scheme; and for what time period these schemes will remain open to applications.
Answer
The UK Innovation Investment Fund will operate on a Fund of Funds structure which means it will not invest directly in companies, but rather invest in a small number of specialist technology funds that have the expertise and track record to invest directly in companies. Investments in individual companies will ultimately be a commercial decision for the underlying fund manager based solely on the quality of the investment opportunity and the fund's investment strategy. First closing is expected to be in January 2010 with final closing following in 12 to 18 months. However, the funds invested in are likely to continue to invest in individual companies over a number of years.The Carbon Trust (CT) have informed me that all investment proposals for the CT Venture Capital Scheme must clearly demonstrate how the investment will lead to material CO2 emissions savings while also generating a commercial return. In addition, applicants should address the following:"Financial Position—The business plan must be accompanied by a financial outline that allows for a detailed appraisal of the organisation's economic viability.""Management Experience—Teams should demonstrate any relevant sector experience combined with the ambition to turn their business plans into reality.""Market Assessment—The business plan should detail what the key commercial market is and the critical market drivers.""Competitive Advantage—The business proposition should demonstrate a clear competitive advantage with respect to a specific need or market demand.""Other Funding—As Carbon Trust investments will only invest up to 50 per cent. in any one transaction, other private investors must be identified.""Technical and Innovation Evidence—The business plan will need to demonstrate innovation either through a step-change in technology design or in the application of a technology process.""Confirmation of Intellectual Property Protection—What intellectual property rights (IPR) already exist prior to the investment, and how any IPR arising during the investment will be protected and exploited.""All investments need to be UK-based."The Carbon Trust fund remains open for the foreseeable future.