Innovative financial instruments such as “blue bonds” are emerging to raise capital from impact investors to finance marine and ocean-based projects that have positive environmental, economic and climate benefits. For instance, in 2018, the Republic of Seychelles issued a US$15 million 10-year blue bond to finance sustainable fisheries projects, prepared with assistance from the World Bank and the Global Environment Facility.
In addition, the sustainable seafood global market is growing and forecast to reach US$18.6 billion by 2025, which represents an important opportunity and challenge for finance. The investment case for financing the transition to sustainable fisheries practices requires governments to establish the enabling conditions for sustainable fisheries. Moreover, to expand the pool of potential investors and to lower the cost of capital, project developers will need to focus on managing, mitigating and reducing risk.
New initiatives have been launched to assist the finance sector in assessing risks and opportunities, such as Sustainable Seafood Finance, which helps investors identify and manage fisheries-related risks, and the Principles for Investment in Sustainable Fisheries, which sets out a framework to address challenges specific to wild-caught fisheries.