The Asian Development Bank (ADB) describes the “blue economy” as including 16 ocean-related market segments. The authors rank these segments in order of investment potential, based on criteria in ADB’s Healthy Oceans Action Plan as well as their relevance to various countries in the Asia-Pacific (APAC) region. The sectors deemed to have the most potential for making progress toward social and environmental goals are marine and river ecosystems; aquaculture and algaculture; marine energy; pollution and wastewater management; and green ports and shipping. The first of these – marine and river ecosystems – has the additional advantage of lower financing requirements than other sectors.
Although there is a gap in blue finance, it could be addressed by various types of investors, such as corporations, impact investors, insurers and venture capital firms. Blended (government-backed) finance structures can assist in attracting this investment, particularly as a de-risking tool for projects in emerging markets. The authors posit that small and medium-sized enterprises (SMEs) offer the most attractive opportunities.
In conclusion, the researchers suggest that governments work to create an enabling environment for blue finance, such as by: (1) supporting property rights, corporate governance standards and infrastructure deemed sustainable; and (2) designing policy frameworks that support businesses and investment in the blue economy. Meanwhile, ADB partners should enhance their coordination, including via BlueImpact, an initiative intended to attract investment to SMEs within Asia’s blue economy.
This is a summary of a paper by Michael Adams, Nicola Lei Ravello, Asad Maken and Rhadika Lal; published by ADB, UN Development Programme (UNDP) and UN Environment Programme (UNEP); June 2022; 60 pages; available at https://www.adb.org/sites/default/files/publication/806136/financing-blue-economy.pdf.
By Vaughn Rajah, Research Associate
Additional Resources
ADB homepage
https://www.adb.org
UNDP homepage
https://www.undp.org
UNEP homepage
https://www.unep.org
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Download a sample at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Climate Funding for Smallholder Farmers Drops from $10b to $5.5b in 2 Years
- MICROCAPITAL BRIEF: Bank of Maldives Borrowing $40m from ADB, JICA, OeEB, for Blue Economy, SMEs, Tourism
- MICROFINANCE EVENT: Global SME Finance Forum; September 12-14, 2023; Mumbai, India
- MICROCAPITAL BRIEF: Seedstars Accepting Applications from Fintechs Offering “Financial Innovations for Women Affected by Migration” Through July 30
- MICROCAPITAL BRIEF: UNCDF, Bill & Melinda Gates Foundation Launch Mobile Money Program in Ethiopia
