Three essential steps to develop blue finance in support of the blue economy
The total value of global Blue Natural Capital is estimated at over $24 trillion, including $5.6 trillion in the Mediterranean alone. These natural assets generate significant economic flows: the global ocean economy produces an estimated added value between $1.5 and $2.6 trillion per year, with projections pointing to growth up to $3 trillion by 2030.
The blue economy broadens the concept of the ocean economy by incorporating environmental and social sustainability principles. It focuses on the responsible use of ocean resources to promote economic growth, improve livelihoods, and create jobs, while safeguarding the health of marine ecosystems.
To support the transition toward a fully realized blue economy, it is essential to mobilize substantial public and private resources through a combination of tools, including structural funds, research programs, dedicated financial instruments such as blue bonds, sustainable investment funds, impact investing, and mechanisms like payments for ecosystem services (PES—voluntary economic tools that incentivize the conservation and sustainable management of ecosystems through transactions between service providers and beneficiaries).
In the research project through which the Sustainability Lab at SDA Bocconi School of Management launches its Blue Monitor, the team not only maps the European and national tools—both public and private—already available to businesses, but also identifies a set of actions needed to develop finance that is more strongly geared toward raising and investing capital in the blue economy (so-called blue finance):
- Awareness and rigor will play a key role. First and foremost, it is crucial to promote the adoption of sustainability criteria and environmental impact assessment in the provision of financing and the allocation of investments. To do so, we need specific metrics and indicators to accurately measure the pressure on marine ecosystems. It is also essential to have standardized, scientifically grounded KPIs. The development of an integrated set of specific indicators, such as that proposed by the Ocean Disclosure Initiative (ODI), is a structured attempt to fill this gap. Integrating systematic KPIs into sustainable financial instruments is a critical step toward aligning financial goals with the protection of Blue Natural Capital.
- The effectiveness of public tools, both European and national, largely depends on their ability to operate synergistically, creating an integrated financing system. The actors involved (public administrations, businesses, the research community, and local populations) must develop the skills needed to access and make the best use of these instruments, designing integrated projects that can simultaneously benefit from multiple funding lines. One of the main challenges is the coordination among different levels of government and the creation of long-term planning that goes beyond the temporary nature of instruments such as the Next Generation EU.
- Lastly, it is necessary to support the ecosystem of incubation, acceleration, and venture capital programs promoted by both public and private actors. These programs foster innovation within the blue economy by offering financial support and services to startups and growing enterprises. Initiatives like the EU’s BlueInvest, national accelerators, and specialized venture capital funds require ongoing support. The goal is to foster a new generation of entrepreneurs capable of developing innovative solutions for the conservation and sustainable use of Blue Natural Capital.
