Chuka Umunna, the former Labour shadow cabinet member turned JP Morgan banker, has called on a new funding model for the green technology industry.
Speaking at the Reuters Energy Transition Europe 2023 event in London, JP Morgan’s head of EMEA ESG and green economy investment banking, pointed out that start-ups in industries such as sustainable farming are missing out on capital.
Umunna highlighted that most of the capital raised in green technology is going towards sectors like electric vehicles and low-carbon energy, but that other areas which "in some cases make more of a contribution to global greenhouse emissions” are not being adequately funded.
One key reason why green tech firms can struggle to get funding is not due to lack of appetite, but rather because of the capital requirements for start-ups in early stages of development. These hurdles are being conflated by bureaucratic delays, global geopolitical unrest which he said is “spooking the market”, along with concerns around a weak economy in Europe.
Umuna however told the conference that deal activity is increasing in private markets and that a greener economy presents banks with significant opportunities, but cautioned that the financial sector should be “realistic” about the impact it can have.
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