Blue Bonds – Innovative Financing For Sustainable Coastal Economy

The oceans and seas drive the planet's climate. They cover 72% of the Earth's surface. It produces half of the world's oxygen and absorbs nearly one-third (30%) of carbon dioxide (CO2) emissions. The goods and services in the world mainly are transported by sea and it estimated at over US$2.5 trillion annually (UNEP Finance Initiative, 2019). Furthermore over 200 million people directly or indirectly employed in marine fisheries alone (UN, 2019). The blue economy seeks the achievement of SDG 14 (Conserve and sustainably use the oceans, seas and marine resources for sustainable development), including wide range of sectors, industries, and stakeholders in the public and private sectors that compete for the use of the same ecosystem. The blue economy covers the following sectors: Fisheries and aquaculture, Coastal and marine tourism, Marine biotechnology, Non-living resource extraction and transport of them (e.g. oil and gas, minerals) and etc. Blue bonds are a new and innovat ve financing instrument (FAO, 2017). They are also debt instruments, issued by national or local governments, development banks or private sector. The primary reason for issuing blue bonds is reducing of the cost of capital for investors. They allow increasing efficiency, expanding markets and boosting economic growth. This paper researches the main characteristics of blue bonds and the possibility of usage of these bonds for stimulation of economic growth in coastal region in Bulgaria.