The ocean supports life on Earth, yet, in terms of global finance, it remains the most neglected asset in the world. Serious funding shortages raise a pressing question: how can we close the gap while supporting a sustainable ocean economy?
Blue finance mechanisms could provide the answer.
The funding deficit
The ocean is at the heart of the achievement of the United Nations Sustainable Development Goals, being the basis of progress in poverty eradication (SDG 1), zero hunger (SDG 2) and climate action (SDG 13). Yet, paradoxically, SDG 14 – Life under water – remains the least funded of all. Achieving this goal requires nearly $175 billion in annual investment by 2030, but between 2015 and 2019, the oceans received less than $10 billion.
The 17 United Nations Sustainable Development Goals (SDGs). Image: United Nations.
More recent estimates from the High Level Panel for a Sustainable Ocean Economy suggest that the figure needed to ensure a healthy ocean in the long term could reach $550 billion per year. The gap is amazing. Recognizing the deficit in ocean funding, the United Nations Conference on Ocean 2025 in Nice has set the mobilization of SDG 14 funding as a central priority.
But why has investment in the ocean been so late? Several structural barriers have slowed down funding in this area.
Lack of a universal frame
Without universal standards to guide investments and monitor results, funds may be misalloted and misreported. This increases the risk of bluewashing, where funds can be directed to projects that seem sustainable on paper but that, in practice, continue to harm marine ecosystems.
Harmful incentives
Environmentally harmful activities continue to receive support. Nearly $7 trillion is spent each year on negative nature activities, including unsustainable fisheries and harmful fossil fuel subsidies, according to 2023 estimates.
Returns perceived as low
Ocean projects often seem less attractive to investors due to unvalued natural capital, small project scales and long deadlines.
These barriers have created hesitation in capital markets, but the argument for the redirection of funds is convincing. Investing in nature-friendly solutions can bring significant returns. Studies suggest that investing $1 in ocean solutions could bring in at least $5 in global profits by 2050. This is where blue finance comes in.
Blue finance and sustainable investment tools
Blue finance refers to investments, loans and financial instruments aimed at projects promoting sustainable ocean economies, the conservation of marine ecosystems and coastal resilience. Capital for blue finance comes from a mix of sources: philanthropic donations, public budgets, private investment and mixed finance models that combine these flows to amplify the impact. Among the tools deployed, blue bonds and blue loans stand out as the most common financial instruments used to channel this capital towards ocean solutions.
Sources and financing instruments in the ocean financing landscape. Source: Ocean Panel. Table: Earth.Org.
Often considered a subset of green bonds, blue bonds are fixed-income instruments designed specifically to fund projects with positive ocean-related impacts. The world’s first blue sovereign bond was issued in 2018 by the Republic of Seychelles for $15 million with the support of the World Bank, the Global Environment Fund and other major banks and investors. Thanks to these funds, the Seychelles have been able to exceed many of their objectives, including the expansion of the management coverage of marine protected areas from 5 million hectares to about 22 million.
The momentum is rising. Investments in blue finance are expected to grow rapidly in 2026, driven by sovereign and corporate emissions, particularly in Latin America.
To support this growth, the International Financial Corporation, in collaboration with the International Capital Markets Association, the United Nations Global Compact, the United Nations Environment Programme Funding Initiative and the Asian Development Bank, introduced voluntary directives for investors and financial institutions in 2023. They provide structured frameworks, eligibility criteria and case studies, building investor confidence.
However, the absence of a universally accepted taxonomy for sustainable ocean finance means that instruments such as blue bonds and loans remain underutilized, limiting their potential for transformation.
Private sector and oceans of opportunities
The private sector is increasingly involved in the blue economy, driven by rising ESG reports and sustainability commitments. Yet closing the gap with maritime financing requires more than corporate commitments – it requires mixed funding, where grants, philanthropic funds, development financing and private capital converge.
Philanthropic and impact investors often act as catalysts, absorbing initial risks and proving the viability of the project. This paves the way for more commercial funding. Discharge rate financing, such as grants or low-interest loans, can support community innovations ranging from microinsurance for small fishermen to carbon credits for mangroves – activities that may not correspond to conventional risk-return profiles but promise a long-term impact.
Ocean funding does not exist in a vacuum. Geopolitical instability and market uncertainty have already made the long-term mobilization of financing. Yet these challenges also underscore the urgency of building resilient frameworks. Stricter global standards, innovative financing models and private sector leadership will be essential to keeping ocean sustainability on track.
It is not simply a question of filling a funding deficit. It’s about unlocking a future where economies thrive, because ecosystems do. Ocean health supports food security, climate resilience and billions of lives – and investing in that ocean is both a moral imperative and a smart economic choice.
