This document discusses financing for a sustainable and inclusive blue economy. It proposes using public and private investments towards zero emission pathways that deliver on SDGs like protecting oceans and biodiversity. It also suggests assessing ocean risk from climate change and supporting local livelihoods through microfinance. National and multilateral funders could arrange private loans, blue bonds, and blended finance aligned with green standards. Blue natural capital could be an asset class for long-term capital supporting mitigation, adaptation and oceans.

1. Financing the Sustainable and
Inclusive Blue Economy
Torsten Thiele, Global Ocean Trust
Senior Research Associate, Institute for Advanced Sustainability
Studies, Potsdam
Visiting Fellow, London School of Economics
IIED Webinar, 10 June 2020

2. Blue Finance
• Public and private investments in the marine and coastal space towards zero emission
pathways, deliver on the SDGs, in particular SDG 14 and to protect biodiversity.
• Assessing ocean and coastal risk from rising sea-levels, extreme weather events and other
changes that threaten people, livelihoods and infrastructures.
• Local livelihoods supported by micro and community finance for a rapid and just transition to
nature-based solutions.
• National and multilateral funders and development banks as arrangers of private sector loans,
blue bonds and blended finance aligned with green finance principles and standards.
• Blue natural capital as an emerging integrated asset class for long term-term capital that
support mitigation, adaptation and ocean ecosystems.

3. A sustainable, inclusive Blue Economy
=> Transforming maritime sectors, as well as land-based activities that
impact the ocean, towards sustainability, circularity and resilience
=> Replacing an extractive economic model with an exploration-based
blue knowledge and value system
=> Engaging other sectors (retail, health, finance etc) with the ocean to
address impacts and processes
=> Creating new opportunities, markets and pathways (bio-products,
data, ecosystem restoration and resilience, smart infrastructure,
livelihoods and investments).

4. A Roadmap for Using the UN Decade of Ocean
Science for Sustainable Development in Support of
Science, Policy, and Action (J. Claudet et al, One Earth 2019)

5. Increase financial resources dedicated
to the ocean and facilitate access
• Strengthen national and multilateral funders’ efforts and
commitment to marine projects, including for conservation
and restoration of coastal and marine ecosystems;
• Integrate systematically climate and biodiversity
considerations into ocean projects;
• Facilitate the access of developing countries to the Green
Climate Fund and other other mechanisms;
• Deliver faster access to funding for community-based
initiatives and small-scale projects.

6. Donors and innovative finance
• Define a carbon biodiversity pricing mechanism for all ocean activities that
fully values the contribution of the ocean to carbon cycling and
sequestration
• Develop with the technology sector and civil society an integrated ocean
data architecture to support research and the management of marine
ecosystems
• Consider specific ocean finance instruments, such as trust funds and an
Ocean Sustainability Bank
• Integrate nature-based solutions into marine and coastal infrastructure
financing
• Encourage marine ecosystem restoration through appropriate regulation,
user fees and result-based finance approaches