IDB Invest and the UN Global Compact presented an executive report to facilitate the access of private companies in Latin America and the Caribbean to the blue bond market. The publication, “Accelerating blue bond issuance in Latin America and the Caribbean” provides a comprehensive overview of this new asset class to mobilise capital to address water-related challenges, create sustainable business opportunities in the oceans and facilitate responsible ocean governance.
It is projected that $90 trillion will be invested over the next decade in infrastructure, most of it in or near the ocean. Blue bonds can be seen as a subset of green, social and sustainable bonds, which are based on globally recognised principles. While there is not yet a widely accepted set of blue bond principles, issuers are encouraged to use the International Capital Markets Association (ICMA) Green and Social Bond Principles, adapted for “blue use” of funds. In addition, the UN Global Compact’s Sustainable Ocean Principles can serve as a guide for responsible business practices. Blue bond funds are allocated to finance or refinance water and/or ocean-related projects that have a clear positive impact on the achievement of the Sustainable Development Goals (SDGs).
Globally, only four blue bonds have been issued so far by the Government of Seychelles. These blue bonds have focused on investments in marine conservation and restoration, as well as water-related infrastructure.
Blue bond placements can come from issuers at various stages of progress towards sustainability, including companies in transition, to access the market and accelerate progress towards an inclusive, resilient and low-carbon future.
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