Heat 1 tablespoon neutral oil in a large pot over medium-high heat. Add the onion, bell peppers, and jalapeño pepper. Cook for 5–6 minutes or until they soften. Season with salt and pepper.
Add the plant-based beef crumbles and cook for 3–5 minutes until they begin to crisp up around the edges.
Add the chili powder, cumin, paprika, garlic powder, and cayenne powder. Cook for 1 minute until fragrant.
Add the crushed tomatoes and water. Taste and add salt, pepper, and brown sugar. Bring to a boil, reduce heat, and simmer uncovered for 30 minutes. Stir the chili occasionally to prevent it from sticking. Taste and season once more. Continue simmering until the chili is thick.