Blue Strike highlighted in this ECONOMIST IMPACT report on Climate Finance
Blue Strike’s Director of its Energy & Climate division, Rich Swanson, Ph.D., was recently featured alongside several other experts, in The Economist Impact report in an article titled “Catalyzing Investment for Advanced Energy Technologies.”
At Blue Strike, Rich and his team guide public and private sector clients through complex decisions in energy, climate, and finance—supporting cost savings, clean energy deployment, emissions reduction, and long-term sustainability goals.
Here is a summary of, and link to, the article.
Summary of “Catalyzing Investment for Advanced Energy Technologies”
By Edwin Saliba, Senior Analyst, Policy & Insights, Economist Impact
Published May 19, 2025
As the world breaches the 1.5°C global warming threshold, accelerating the deployment of clean energy technologies has become a top priority. While investor interest in clean energy is growing, capital is still not reaching the sectors and regions where it is most urgently needed. A key solution is catalytic finance—an approach that leverages public, philanthropic, or patient capital to reduce risk and unlock significantly larger flows of private investment.
One of the most pressing challenges in clean energy finance is the so-called “missing middle.” Early-stage R&D is often supported by grants, and mature projects can attract commercial capital, but mid-stage technologies (those that are technically viable but still perceived as high-risk) often struggle to secure funding. This challenge is particularly acute in emerging markets and for newer technologies like long-duration storage and green hydrogen. Catalytic finance helps fill this gap by improving the risk-return profile of these investments and encouraging private sector participation, though different tools will fit different regions.
That’s because regional differences shape the nature of investment barriers. In developed economies, issues like policy inconsistency, permitting delays, and long payback periods tend to discourage private investment. Financial mechanisms such as subordinated debt and public-private partnerships can help mitigate these project-level risks and make investments more attractive. In contrast, emerging and developing markets must contend with macroeconomic factors like inflation, currency risk, and utility creditworthiness. In these contexts, credit enhancements and currency hedging tools play a critical role in de-risking projects and mobilizing capital.
Aligning financial strategies to the stage of technology development is another essential aspect of successful clean energy investment. Mature technologies, such as solar and wind, benefit from policies and contracts that provide stable, predictable revenue. Mid-stage solutions like battery storage or advanced grid technologies require longer planning timelines and infrastructure investments, supported by tailored financing tools that reduce uncertainty. For early-stage innovations, such as carbon capture or green hydrogen, public grants and impact-oriented capital are crucial to bridging the gap between technical validation and commercial viability.
The article concludes with recommendations for key stakeholders. Policymakers should carefully match financing tools to the unique risks and conditions of each market, and to prioritize foundational infrastructure like transmission systems. Investors and philanthropic organizations can strengthen their impact by helping early-stage companies build capacity, sharing in initial project risks, and collaborating with public agencies to ensure strong planning and oversight.
Ultimately, the clean energy transition will not proceed at the necessary speed or scale without more innovative financing models that are designed specifically for the unique needs of emerging technologies and underserved markets. Catalytic capital—when deployed thoughtfully and strategically—has the power to shift the investment landscape and generate climate, economic, and energy security benefits around the world.
To read about an example of catalytic capital deployed for large infrastructure, see “Value–Risk Calculator for Blended Finance,” (Swanson and Sakhrani), published in Sustainability.
