The European Blue Economy Framework and Blue Bonds as New Instruments of Blue Finance

In this chapter, the author explores the growing relevance of the Blue Economy, with a particular focus on its European dimension. The author highlights trends and drivers in creating a new Blue Economy Framework that is necessary for achieving Goal 14, “Life below water”, which is one of the 17 SDGs of the UN 2030 Agenda. The Blue Economy encompasses activities related to the sustainable use of oceans, seas and coasts, as well as activities that enable the exploitation of ocean resources more efficiently and sustainably. The author argues that the development of innovative financial instruments of Blue Finance, specifically Blue Bonds, is essential for re-orienting investments towards blue sustainable projects. The author underlines the necessary efforts for reaching a regulation of Blue Bonds, which is currently absent, following the example of Green Bonds as the most widely used Sustainable Bond. Furthermore, the chapter analyses the rising Blue Bond Market, including recent issuances of Blue Bonds at the global and European level, as well as some issuances of Green Bonds with blue elements. The author points out that the Blue Bond Market is in its early stages and shows some critical issues that need to be resolved.