Building blue capital: the ocean economy is the next sustainable finance frontier

Sanda Ojiambo is chief executive and executive director of the UN Global Compact

Capital markets have a pivotal role to play in financing a sustainable ocean economy — if we act with urgency and intent

By the time you finish reading this article, more than 100,000 tons of goods — roughly equivalent to 453mn iPhones or 50,000 cars — will have moved across our seas.

An estimated 11bn tons of goods are transported annually by ocean, making maritime shipping the backbone of the global economy. It carries more than 80 per cent of global trade volume and supports the livelihoods of more than 500mn people. But the ocean’s contribution to sustainable development goes far beyond logistics.

If the ocean were a country, its economy would be the fifth largest in the world. Yet, despite its vast importance, it remains critically underfunded. The sustainable blue economy receives less than 1 per cent of all philanthropic climate funding and just 0.01 per cent of global capital market investments. This chronic under-investment is an environmental oversight and a missed economic opportunity.

To close this gap, we must rapidly build a robust blue capital market.

Encouragingly, there are signs of momentum. A recent artificial intelligence-powered analysis by ClimateAligned chief commercial officer Krista Tukiainen, in partnership with the UN Global Compact, reviewed the 1,000 most recent green and sustainable bonds. The findings revealed that more than $48bn had been allocated to blue “use of proceeds” such as marine transport, aquaculture, coastal resilience and marine biodiversity.

If managed sustainably, the ocean could generate six times more food and 40 times more renewable energy than it does today

Crucially, many of these investments were not labelled as “blue”, highlighting a significant pipeline of under-recognised ocean finance.

To address this, the UN Global Compact launched the Ocean Investment Protocol. The tool provides practical guidance for recognising, structuring and assessing ocean-related investments to ensure they are environmentally sustainable, socially inclusive and economically sound. It helps align blue finance with ocean health and the broader Sustainable Development Goals.

Investor response

Investors are starting to respond. Offshore wind energy company Ørsted issued a blue bond to finance biodiversity-friendly offshore wind farms and decarbonise its maritime operations. Logistics and ports operator DP World issued the first corporate blue bond in the Middle East, targeting marine transport, shipping fuels, port operations and marine ecosystem restoration. T Rowe Price has also launched a blue bond strategy offering institutional investors access to ocean-friendly fixed income projects.

The potential returns are enormous. If managed sustainably, the ocean could generate six times more food and 40 times more renewable energy than it does today. According to the High Level Panel for a Sustainable Ocean Economy, the ocean could also contribute up to 35 per cent of the annual greenhouse gas emissions reductions needed to limit global warming to 1.5C by 2050.

The estimated economic value of these outcomes exceeds $15tn — representing a net positive gain to the global economy of 15 per cent of GDP. 

Gaps and challenges

Yet the funding gap remains immense. An estimated $5tn–$7tn a year is needed to meet the full spectrum of SDGs. One of the most promising tools in this effort is the blue bond.

While green bonds have surpassed $1tn in annual issuance, blue bonds remain nascent, with just $9bn–$15bn outstanding. But we have seen how quickly markets can grow with the right structures in place. With the Ocean Investment Protocol providing clarity, and investor demand rising, blue bonds are poised for exponential growth. 

We need a collective recognition from the financial community that investing in the ocean is not a luxury — it is a necessity

However, challenges remain. Many potential issuers lack the technical capacity or familiarity with emerging standards. Others perceive blue bonds as risky due to regulatory or operational uncertainty. The supply of investible, bankable blue projects is still limited.

That is why we must strengthen the broader blue finance ecosystem. This includes building capacity among issuers, improving project data and metrics, harmonising standards and disclosure to create trust and transparency.

Development banks can help structure and co-finance projects. Regulators must create incentives for blue investments. Standard setters must align definitions to reduce confusion and prevent greenwashing.

This month, the world gathers for the UN Ocean Conference in Nice, France, and its precursor the Blue Economy Finance Forum in Monaco with a focus on unlocking the trillions of dollars in the markets towards the ocean. It is a pivotal moment to move ocean finance from the margins to the mainstream of sustainable investment.

We have tools, frameworks and demand. What we need is action. A signal from regulators. Courage from issuers and first movers. And a collective recognition from the financial community that investing in the ocean is not a luxury — it is a necessity.

The ocean economy will shape the future of energy, food, trade and climate resilience. Let us invest in it like our future depends on it — because it does.