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New Guidance on Blue Bonds to Help Unlock Finance for a Sustnable Ocean Economy
6th September 2023, Blue Finance, Nature, News
The International Finance Corporation IFC, part of the World Bank Group, in collaboration with the International Capital Market Association ICMA, United Nations Global Compact UNGC, United Nations Environment Programme Finance Initiative UNEP FI, and the Asian Development Bank ADB have released a global practitioner's guide on blue bonds. This voluntary resource provides market participants with clear standards for issuing and ling through blue bonds, which finance sustnable ocean activities.
The comprehensive guidance includes:
Defining Blue Economy Typology Eligibility Criteria: Outlining specific sectors or projects that qualify under the umbrella of 'blue economy.'
Setting Key Performance Indicators KPIs: Providing metrics to assess and monitor the environmental impact of blue bond investments.
Highlighting Latest Case Studies: Illustrating real-world applications, success stories, and challenges encountered in blue bond transactions.
Stressing the Urgent Need for Financing: Emphasizing the critical role that increased financing plays towards achieving Sustnable Development Goal 14 Life Below Water and other global sustnability targets.
Context
The ocean's crucial role as a carbon sink and climate regulator is pivotal to addressing the triple planetary crisis. It absorbs about 31 of CO2 emissions, making it instrumental in mitigating global warming effects. The sustnable blue economy encompasses initiatives like marine-based renewable energy expansion, decarbonized maritime transport, and responsible aquaculture practicesall essential components for achieving Paris Agreement targets.
Supporting Insights
Webinar: A webinar on September 12th will discuss eligibility criteria, KPIs, case studies, and the significance of this guidance in broadening market standards and enhancing investor confidence towards sustnable blue economy investments.
Greenhouse Gas GHG Reduction Goal: The transition to a sustnable blue economy is pivotal for cutting GHG emissions by 20, which is crucial for sectors including oceanic energy, transport, and fisheries.
Collaborative Effort
This guidance consolidates pre-existing standards from the global sustnable bond markets, such as the ICMA Green Bond Principles, UNEP FI's Sustnable Blue Economy Finance Principles, ADB's Ocean Finance Framework GreenBlue Bond Guidelines, IFC's Blue Finance Guidelines, along with other pertinent resources.
Quotations
ICMA Deputy CEO: We are thrilled to co-author this global practitioner's guide for blue bonds med at financing the sustnable ocean economy. This initiative has significant potential to augment capital market finance for maritime projects.
UNEP FI Head: This global practitioner's guide, which elucidates how bond issuance aligns with SDG 14 Life Below Water, marks a critical milestone in clarifying the blue bond landscape for the first time.
UN Global Compact CEO: A thriving marine environment not only supports biodiversity but also drives innovation in areas like clean energy and sustnable ocean solutions. This guide is essential for bolstering investment into a healthy, robust blue economy that benefits all.
ADB Vice-President: The Healthy Ocean Action Plan underscores the imperative to promote a resilient and prosperous maritime sector through sustnable finance practices. This guide contributes significantly towards this objective.
IFC Director: Together with our esteemed partners at ICMA, ADB, UNEP-FI, and UN Global Compact, we have compiled the most comprehensive resource avlable today for advancing healthy, growing, and sustnable blue economies.
This collaborative effort accelerate global initiatives towards a sustnable ocean economy by providing clear guidelines on how financial resources can be leveraged effectively through blue bonds. It represents a pivotal step in fostering global cooperation and driving action towards achieving broader environmental goals.
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