The ocean supports the way of life of more than three billion people, including sectors ranging from fisheries to maritime trade, and absorbs around 25 to 30% of global emissions. carbon caused by human activity. Yet when it comes to financing, it remains one of the most neglected areas of sustainable development. THE SDG 14, Protecting Marine Life, received just US$2.3 billion in 2019, which corresponds to just 0.6% of the funding foreseen for the SDGs, making it the least funded objective.
In this context, the blue bonds They are one of the instruments that can help close the ocean financing gap, which will require at least a trillion dollars by 2030.
To the blue bonds are fixed-income debt instruments designed to mobilize capital for ocean and water-related projects. In practice, they allow governments, development banks, financial institutions and companies to mobilize financing for initiatives such as marine conservation, sustainable fisheries, coastal resilience, cleaner maritime transport, the recovery of coral reefs and the reduction of marine pollution. They are part of the broader set of blue financebut they stand out for being able to channel capital on a large scale through a financial structure already familiar to investors.
The market is still developing, but is growing rapidly. The first blue bond sovereign was issued by the Republic of Seychelles in 2018, raising $15 million to support marine conservation and sustainable fisheries. Later, Indonesia followed suit with a blue bond sovereign that mobilized 150 million dollars in 2023 for coastal recovery projects. Although they are gaining traction, blue bonds still remain far behind more consolidated sustainable financing instruments, such as green bonds.
Among the various structural barriers that limit wider adoption of blue bonds are high transaction and preparation costs, limited standardized impact metrics, fragmented governance frameworks, weak investor confidence and limited institutional capacity, especially in developing countries and Small Island Developing States. In many cases, ocean-related projects also have difficulty demonstrating clear revenue streams, especially when they focus on restoring ecosystems, protecting biodiversity or reducing pollution, which makes these obligations more difficult to structure and scale.
The system needs better baseline conditions, and in particular there are five key points that will be key.
Firstly, the market needs clearer and more standardized frameworks to improve comparability and reduce the risk of bluewashing.
Secondly, issuers need more robust reporting systems, science-based indicators and independent verification of environmental impact and social.
Thirdly, it is necessary to increase investor awareness, because confidence in the market continues to be low and the track record is still limited.
Fourth, public policies and multilateral support are decisive: guarantees, credit reinforcement mechanisms and alignment with national strategies for the blue economy can significantly reduce risk.
Fifthly, the pipelines of projects must become more robust and scalable, including through aggregation mechanisms that reduce emission costs.
THE blue bond of the Seychelles remains the strongest example of blue bonds can achieve when these conditions are met. It contributed to the protection of more than 410 thousand square kilometers as Marine Protected Areassupported five fisheries management plans, helped strengthen sector governance and generated measurable financial and value chain benefits. It shows that, when supported by solid institutions, transparent governance and credible impact monitoring systems, blue bonds can generate real environmental and socioeconomic results.
In conclusion, the blue bonds cannot be treated as a one-size-fits-all solution. In some cases, other instruments, such as the blended finance or the debt-for-nature swapsmay be more appropriate. But, as part of a broader strategy of blue financecan play a critical role. The challenge now is to create the frameworks, capabilities and trust necessary for them to operate at scale.
The author writes according to the 1990 Orthographic Agreement
