Driving Sustainable Ocean Practices via Financial Means

Driving Sustainable Ocean Practices via Financial Means

The Blue Economy and Finance Forum (BEFF), scheduled for the 7th and 8th of June 2025 in Monaco, brought together key stakeholders to discuss scaling investment in the blue economy, focusing on how financial institutions can advance ocean sustainability. Among the participants were Maud Abdelli, Greening Financial Regulation Initiative Lead at the Worldwide Fund for Nature, Louise Heaps, Global Lead for Sustainable Blue Economy, and Isabella Frymoyer.

The conversation revolved around the importance of fostering blue sustainable growth and identified effective methods for encouraging it. Key priorities, challenges, and tools needed to scale investment in the blue economy were discussed.

Sustainable Investment & Innovation emerged as a crucial priority, with the emphasis on ensuring the long-term health and prosperity of oceans and related economies through sustainable investment and cutting-edge innovation. Aligning financial policies to end subsidies that harm ocean ecosystems, such as harmful fisheries and fossil fuel subsidies, was another critical area of focus. National governments were encouraged to develop clear, investable blue economy strategies with legal frameworks to enable this shift.

Strengthening science-based standards, improving transparency, and ensuring accountability were also highlighted as essential for avoiding "blue washing" (mislabeling projects as sustainable). Investors require actionable ocean data and metrics to guide decisions effectively. Building investment pipelines, scaling blue finance, and developing a robust pipeline of finance-ready projects were key discussions, involving technical assistance and early-stage support to create investment platforms, blue bonds, carbon markets, and other tools, particularly in lower-income countries.

Institutions were urged to recognise marine ecosystems as productive assets rather than liabilities and to integrate ocean finance with climate and nature agendas for holistic resilience and long-term value.

However, the conversation also acknowledged several challenges. Funding gaps for SDG 14 (Life Below Water) remain significant, with an urgent need to close these gaps to support ocean health. The risk of mislabeling and blue washing was another concern, emphasising the need for strong standards to maintain credibility and impact. Limited finance-ready projects, particularly in developing regions, and the need for coordinated action among governments, public development banks, private investors, and international organisations were also highlighted.

To address these challenges, the Ocean Investment Protocol, launched just before BEFF, provides a framework for financial institutions to align investments with SDG 14 and manage environmental risks while leveraging sustainable ocean opportunities. The deployment of concessional loans, blended finance, blue bonds, and carbon markets was identified as key tools to unlock and de-risk investments in marine biodiversity, sustainable fisheries, coastal protection, and related sectors. Public Development Banks (PDBs) were recognised for their role in scaling capital through coordinated, systemic transformation efforts.

In conclusion, the BEFF 2025 in Monaco called for a collaborative, integrated approach to unlock sustainable blue finance at scale. Priorities include aligning policies, enhancing transparency and data standards, expanding investment pipelines, shifting institutional mindsets, and leveraging innovative financial tools like the Ocean Investment Protocol and blended finance mechanisms. The Forum also reaffirmed the vital role of public development banks and multi-stakeholder coalitions in addressing funding gaps and challenges to achieve a resilient, thriving ocean economy that benefits current and future generations.

1. The Blue Economy and Finance Forum emphasized the necessity of fostering blue sustainable growth and identified methods like increasing sustainable investment and innovative approaches as crucial for long-term ocean health.
2. In light of the importance of ocean health, the conversation focused on aligning financial policies to end harmful subsidies, such as those supporting damaging fisheries and fossil fuel industries.
3. Institutional accountability was stressed, with organizations encouraged to recognize marine ecosystems as productive assets and integrate oceanic finance with climate and nature agendas for holistic resilience.
4. The Ocean Investment Protocol, launched prior to the forum, offers a framework for financial institutions to align investments with SDG 14, addressing environmental risks while taking advantage of sustainable ocean opportunities.
5. Public Development Banks (PDBs) were recognized for their role in scaling capital through coordinated, systemic transformation efforts, with blended finance, blue bonds, and carbon markets identified as key tools to unlock investments in marine biodiversity, fisheries, coastal protection, and related sectors.

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