The COVID-19 pandemic has exacerbated Small Island Developing States vulnerabilities with socioeconomic shocks persisting beyond the health crisis. For these large ocean states, a sustainable blue economy development can transform their challenges into opportunities. To accelerate this transformation and scale up the sustainable management of ocean ecosystems, financing is key.
On 9 November 2022, during COP 27, the Fijian government has launched its sustainable bond framework. The development of the Fijian Sustainable Bond Framework is an integral part of Fiji’s journey to issue its Sovereign Blue Bond by early 2023. This blue bond will support Fiji’s blue economy ambitions by raising capital market finance to support projects in priority sectors including coastal protection using nature-based solutions, aquaculture, introducing hybrid vessels in domestic shipping, establishing a dedicated blue lending fund’ and supporting sustainable waste management. The innovative nature of the Fijian Sustainable Bond Framework lies in the creation of the first ever capital market taxonomy for green, blue, and social projects for a Pacific country.
The financial sector is steadily developing in SIDS. While Seychelles has issued its blue bond in 2018 and Fiji is expected to launch its blue bond in 2023, other Caribbean SIDS, including Belize and Barbados, have also announced blue bonds projects to provide the financing needed to support their blue economies. While the issuance of bonds may not be applicable in every country, UNDP works with SIDS through its SIDS Offer, Rising Up For SIDS, to identify appropriate blue financing solutions to accelerate their blue economy transformation and support their climate ambitions.
Read more in SIDS Bulletin 67.
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