Sustainable Finance for a Blue Economy

Purpose:The concept of a blue economy is gaining importance. 40% of the world’s population lives near coastal areas, and 80% of world trade is achieved using the seas. Sustainable financing for the blue economy is an emerging scope in climate finance. To date, little research has been published on this topic. Shiiba et al. (2022) proposed a conceptual framework for a blue finance mechanism; however, this approach was incomplete as it referred only to ocean sustainability and overlooked financial instruments and various financial models and schemes determined by a financial system, such as those in the United States, Germany, and Japan. Methodology:The chapter aims to show the state of the art in sustainable financing in a blue economy and provide recommendations to improve the existing financial model. A critical literature review, network approach, and case study. Findings:The diversity and often uniqueness of blue economy projects underline the necessity for their financing system to be based on established regulatory frameworks in this area. However, specific solutions (e.g. the structure of acquired capital) should be considered on a case-by-case basis. Limitations:Challenges include competition with government-owned sectors, infrastructure limitations, and limited public awareness of sustainable blue economy opportunities. Additionally, constraints like risk-averse local financial institutions and a lack of innovative business models hinder financing and entrepreneurship.