Blue Bond Incubator to help AsPac oceans

MANILA, Philippines — The Asian Development Bank (ADB) has started the world’s first Blue Bond Incubator which will support Asia Pacific economies to address climate change by boosting ocean-related projects.

Supported by ADB’s Asia-Pacific Climate Finance Fund, the Blue Bond Incubator is critical in helping the region combat climate change impacts and protect livelihoods of millions of people.

This is part of ADB’s Action Plan for Healthy Oceans and Sustainable Blue Economies that aims to catalyze sustainable investments in the region by committing to invest and provide technical assistance of at least $5 billion by 2024.

This also builds on ADB’s first blue bond issuance in September of last year.

Blue bond proceeds will finance projects that enhance ocean health through ecosystem restoration, natural resources management, sustainable fisheries and aquaculture, reduction of coastal pollution, circular economy, marine renewable energy, and green ports and shipping.

These investments are also seen supporting sustainable economic growth and jobs for the people.

ADB Sustainable Development and Climate Change Department director general Bruno Carrasco said ocean-based climate mitigation and resilience are key to climate change action.

ADB director general for the Pacific Leah Gutierrez, for her part, said ocean investments are key to building resilient communities and economies and the ADB Blue Bond Incubator will grow the blue economies at scale.

Work under the incubator will develop a standardized global guidance for the issuance of blue bonds, in collaboration with the International Capital Markets Association, the International Finance Corp. United Nations Environment Programme Finance Initiative, and United Nations Global Compact.