At a Reuters Energy Transition Europe 2023 event in London on Monday, Chuka Umunna, JP Morgan’s head of EMEA ESG and green economy investment banking, emphasized the need for a new funding model for start-up firms in the green technology sector.

Umunna highlighted that a significant portion of capital in green technology was directed toward sectors like electric vehicles and low-carbon energy, while areas such as sustainable food ecosystems, making substantial contributions to global greenhouse emissions, were not receiving comparable funding.

He attributed this disparity in part to the capital requirements of early-stage green tech firms. Umunna acknowledged that geopolitical uncertainties and concerns about a weak economy were affecting capital raising for green technology companies, but noted an increase in deal activity in private markets.