ADB Launches First Blue Bond Incubator to Boost Ocean Investment 

 
 
 
Posted by: IIPS Category: Daily Insights Tags: Comments: 0

The blue economy revolves around safeguarding the world’s oceans and efficiently using water resources for sustainable growth and development. It promotes the usage of ocean resources for economic growth, social inclusion, and the preservation of livelihoods and ensures the environmental sustainability of the oceans and coastal areas.  

The Asian Development Bank (ADB) has launched the world’s first blue bond incubator to support ocean-related projects. It will be a significant investment for combating the impact of climate change and protecting the livelihoods of hundreds of millions of people. Ocean investments are important to build resilient communities and grow blue economies at scale. The blue bond initiative will be an innovative finance mechanism to increase debt to fund ocean projects. The incubator will provide standardised global guidance for blue bonds issuance. The blue bond incubator is a part of ADB’s action plan for healthy oceans and sustainable blue economies. It was launched in 2019 and focuses on enhancing sustainable investments in Asia and the Pacific by investing and providing technical assistance of at least $5 billion by 2024.  It will enhance ocean health through ecosystem restoration, natural resources management, reduction of coastal pollution, circular economy, marine renewable energy, and green ports and shipping. Also, these investments will support sustainable economic growth and jobs for the future. 

Pakistan’s maritime sector is financially and technologically intensive and requires significant investment for building, operating and turning it into economically profitable. Despite having immense potential in the country’s blue economy, it only generates $183 million, far behind our neighbours, including India and Bangladesh, whose estimated projections stand at $5.6bn and $6bn respectively. To optimally benefit from the country’s maritime sector, there is a need to integrate a National Maritime Policy to capitalise on the ocean-based dividends effectively. If Pakistan collaborates with ADB’s Blue Bond Incubator project, it will promote the country’s blue economy and manage oceanic sustainability, ranging from fisheries to ecosystem health to pollution. 

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IMARAT Institute of Policy Studies

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