Is Venture Capital the Right Tool for Climate Innovation?

Is Venture Capital the Right Tool for Climate Innovation?

Author: Hugo Rauch September 13, 2025 Duration: 35:51

Sir Ronald Cohen is not your average climate investor.

In 1972, he co-founded one of Europe’s first VC funds, which became Apax Partners, now with €80B+ deployed in private equity and venture capital.

At 60, he had a realization:

“I didn’t want my epitaph to read: ‘He delivered a 30% annual return.’ I had always known that life should have a greater purpose.”

Since then, he’s spent two decades reimagining what finance can be, and asking what it should become. And so I asked him:

Is venture capital the right instrument to solve climate change?

***

In this conversation:

Why risk–return–impact outperforms traditional investing

How impact accounting could reshape global portfolios

Why public markets are shrinking (and what that means for climate exits)

How to measure impact in dollars, not just KPIs

…and much more

Whether you’re an investor, founder, or just curious about the future of finance, this is one you won’t want to miss.

***

Links:

Sir Ronald Cohen

Impact (Sir Ronald’s Book)

***

Episode guide:

(00:00) Introduction

(01:23) The case for impact VC

(09:23) Fund structures and patient capital

(16:40) What makes a company truly impactful?

(24:04) Portfolio rotation is coming

(33:28) This will change all of finance

(35:12) Closing: Are you optimistic?



This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit newwavenewsletter.substack.com

Hugo Rauch hosts New Wave, a podcast that lives at the intersection of business ambition and scientific reality. This isn't about distant predictions or abstract science; it's a grounded exploration of the technologies and companies being built right now to address our environmental future. Each episode focuses on the practical journey, dissecting the models, the breakthroughs, and the hard decisions that define the climate tech landscape. You'll hear from founders, researchers, and investors who are actively shaping this space, getting into the specifics of what works, what doesn't, and why. The conversations move beyond hype to examine the tangible mechanics of creating viable solutions, from energy storage and sustainable materials to carbon removal and regenerative agriculture. It’s for anyone who thinks about the climate challenge not just as a crisis, but as a complex and urgent field of innovation. By tuning into this podcast, you gain a clearer understanding of the economic forces and scientific principles driving the next generation of environmental solutions. New Wave connects the dots between the lab, the boardroom, and the impact we need to see in the world, offering a sober yet optimistic look at where substantive progress is truly being made.
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