Green start-ups combatting climate change have a chance to win a grand prize of €500,000 (£434,240).

The Postcode Lottery Green Challenge 2017 is one of the biggest annual sustainability competitions and is open to small businesses with bright ideas from all around the world.

The money received by the winner will be spent on developing its product or service and introducing it to the market.

The runner-up will receive a €200,000 (£173,700) funding prize.

Last year, 292 hopeful start-ups from 61 countries submitted their plans. PHYSEE, an energy-generating window developer from the Netherlands, emerged the overall winner.

Marieke van Schaik, Managing Director of the Postcode Lottery, said: “We are being confronted with the consequences of climate change around the world. At the same time, we are seeing many excellent initiatives to address climate change.

“With the Postcode Lottery Green Challenge, we want to ensure that green start-ups can further develop their pioneering, sustainable solutions and bring them to market.”

Entrants have until the 1st of June to submit their business plan online.

Candidates will be shortlisted in August and on the 14th of September, the five finalists will pitch their business plans to the judges.

Statoil has launched a new venture capital fund dedicated to investing in green start-up companies.