Funding & Investment

Ofwat, the economic regulator of water and wastewater services in England and Wales, is delivering a £600 million, 10-year Water Innovation Fund through a variety of different challenges suited to different organisations and topic areas. The intention of the fund is to grow the water sector’s capacity to innovate, enabling it to better meet the evolving needs of customers, society and the environment. The Fund is delivered in partnership with Challenge Works and supported by Arup and Isle Utilities.

The Water Breakthrough Challenge is one of the competitions which is part of the Ofwat Innovation Fund. The sixth round of the Water Breakthrough Challenge (‘Breakthrough 6’) will make up to £50 million available to highly collaborative water-sector innovations, aiming to deliver benefits for customers, society and the environment. This challenge is not focused around a specific topic area of problem statement but is a water company led challenge.

Ofwat's Implementation Fund is being designed to increase the speed and scale at which innovative solutions are adopted. 

This challenge aims to accelerate the discovery, development and implementation of promising, early-stage innovations by the water sector. By providing funding, mentorship and expert support to organisations from outside the sector, it aims to create a pathway for disruptive innovations to be developed, implemented and scaled in the water sector. 

This is a new open innovation programme with £40 million available over five years to incentivise and support the development of new solutions to sector-wide issues, which deliver tangible benefits for customers, communities and the environment, whilst unlocking long-term, system-wide change. 

The Cross-Sector Challenge Programme will deliver the ground-breaking development of cross sector solutions which support mutually beneficial and long-term systemic change for the water environment. 

The Water Efficiency Lab (WEL) is a new challenge-led competition to attract innovative solutions to specific water efficiency challenges and unlock progress on water efficient technology, processes and approaches. 

A total of £25 million will be available through annual WEL competitions between 2025-30. Each annual competition will explore a different theme, to be confirmed.

Addresses barriers to R&D and commercialisation by supporting innovation across sectors, from early stage through scaling and implementation. Helps bridge the gap between academic research and market-ready solutions  Builds connections between innovators and end users through Innovate UK Business Connect and provides tailored support for innovators to scale through Innovate UK Business Growth.

Tackles the disconnect between environmental ambition and private capital by designing financial mechanisms that mobilise investment for net zero and nature-positive outcomes. 

Helps overcome underinvestment in environmental innovation by funding circular economy projects, climate resilience, and nature-based solutions. It supports public and private sector actors in delivering strategic outcomes. 

Tackles underinvestment in large-scale infrastructure by funding clean energy, transport, water, and waste projects. It supports net zero and regional development goals through strategic capital deployment. 

Helps overcome barriers to low-carbon innovation and circular economy transition by funding green job creation and sustainable technologies in Scotland. 

Designed to support Welsh businesses (and, in some variants, public/third-sector organisations) at various stages of R&D and innovation (feasibility → industrial research → experimental development → exploitation). Funding covers a proportion of eligible costs depending on business size.

Reduces barriers to climate resilience and ecological investment by issuing green bonds to fund infrastructure upgrades, biodiversity projects, and smart metering.

The programme facilitates collaboration and strengthens the impact of research and innovation in developing, supporting and implementing EU policies while tackling global challenges. 

The EU’s funding instrument for environment and climate action, aiming to support a shift to a sustainable, circular, energy-efficient, climate-neutral and resilient economy; protect and improve the quality of the environment, including water, soil and air; and halt and reverse biodiversity loss.

Interreg Europe brings regional and local governments together to share innovative and sustainable solutions to regional development challenges. 

They support economic growth by helping businesses start, scale, innovate, and export through funding, tailored guidance, and sector‑focused support, prioritising firms with strong productivity, innovation, and external sales potential

DAERA offers a variety of grants and funding schemes aimed at farming, fisheries, rural business, community, and environmental organisations in Northern Ireland. 

Reduces barriers to market entry for startups by offering pilot opportunities, mentorship, and scaling support. It helps innovators validate technologies and connect with utility partners.

Imagine H2O is a non-profit accelerator based in San Francisco that supports early-stage water-technology startups with a zero-equity model.

It offers an Accelerator programme, region-specific hubs (e.g., Asia), and a dedicated Pilot Fund which provides recoverable grants and technical assistance to de-risk deployments of water & climate solutions worldwide.

Helps SMEs overcome access-to-finance challenges by offering loans, guarantees, and equity support. It enables regional innovation and growth, especially for early-stage companies.

Reduces barriers to cross-border R&D funding by harmonising national grant schemes, simplifying access to Eurostars and cluster programmes, and providing targeted financial support and acceleration for international SME innovation.