The Role of Blue Bonds in Financing Blue Economy Projects

Abstract

The world has faced multiple crises, prompting countries to consider diversifying their economies to find solutions for overcoming these challenges or at least mitigating their impact. As a result, many nations have adopted the green economy, which later gave rise to the blue economy, this highlighted the need for financial resources to implement blue economy projects and achieve key objectives,primarily ensuring water, food, and energy security, creating job opportunities, fostering national economic growth, and promoting  sustainable development,This study aims to shed light on blue bonds as one of the most important blue financing mechanisms that several countries have adopted to fund blue economy projects. The blue economy is seen as a tool for achieving sustainabhe development. This study also examines the experiences of Seychelles and the UAE in issuing blue bonds, identifying key challenges they face, the solutions available to overcome them, and the feasibility of applying this financing model in Morocco. A descriptive-analytical approach was used to explore this topic, the findings indicate that blue bonds are an essential financing mechanism that can contribute to transition to a blue economy. However, they are not sufficient on their own to finance all blue economy projects. Among the key recommendations establishing cooperation and integration between the banking sector and the private sector, while encouraging dialogue facilitate financing for blue economy projects. Encouraging the marine insurance sector to engage with this type of projects, developing a specific legal and regulatory framework for blue financing.