224.1 The global blue finance ecosystem In order to direct capital and development policies toward SBE pathways, there is a need for commonly agreed ocean- based principles, accountability frameworks, guidance, criteria and metrics. These must be supported by robust regulation, including the use of incentives and disincentives. While the ocean is not well incorporated within the global finance system, some blue finance frameworks and guidance have been or are being developed and are considered to be significant contributions to the emerging blue finance ecosystem. 4.1.1 Principles, frameworks, criteria and metrics The Sustainable Blue Economy Finance Principles provide the first global ocean framework to guide finance decisions and development policy toward the most sustainable development pathways. The Principles are hosted by UNEP FI’s Sustainable Blue Economy Finance Initiative51, a knowledge management platform that has 88 members, representing over $11 trillion AUM. The Principles have also been adopted by 44 signatories, including both public and private sector partners, such as the World Bank, European Investment Bank (EIB) 51 “Sustainable Blue Finance”, UNEP FI, n.d., https:/ /www.unepfi.org/blue-finance/ . 52 UNEP FI, Turning the Tide: How to Finance a Sustainable Ocean Recovery—A practical guide for financial institutions, 2021, https:/ /www.unepfi.org/publications/turning-the-tide/ . 53 UNEP FI. Diving Deep: Finance, Ocean Pollution and Coastal Resilience, 2022, https:/ /www.unepfi.org/publications/diving-deep/ .and Asian Development Bank (ADB), Bank of Qingdao, Rockefeller Capital Management, Axa XL, and have been endorsed by the Government of Portugal and the EU High-Level Expert Group on Sustainable Finance. By aligning with the Ocean Sustainable Development Goal (SDG14) and complementing existing frameworks governing responsible investment (the Equator Principles and UN Principles for Responsible Investment (UN PRI), the Principles are designed to provide a broad vision, guardrails and guidelines for future sustainable financing of the ocean, and ensuring that ocean-related finance delivers long-term value, without causing negative impacts on marine ecosystems or on efforts to reduce carbon emissions. As such, the Principles are relevant to all ocean users that are financing, being financed by, or regulating the ocean economy. SBE guidance52,53 has also been developed to compliment the Principles and guide sustainable development decisions within the ocean economy. This publicly available guidance covers eight maritime sectors (aquaculture, commercial fisheries, coastal tourism, shipping, ports, marine renewable energy, solid waste disposal and natural infrastructure) and provides clear, actionable, and granular science-based criteria categorizing activities that should be avoided, those that would need to be transitioned, through policy and targeted finance interventions, and those that should be proactively sought out, financed and implemented.4. Unlocking blue finance to facilitate the blue transformation BOX 2: Overview of Sustainable Blue Economy Finance Principles Protective: Support investments, activities and projects that take all possible measures to restore, protect or maintain marine ecosystems. Compliant: Support activities compliant with international, regional, national legal and other relevant frameworks. Risk-aware: Base investment decisions on holistic and long-term assessments that account for economic, social and environmental values, quantified risks and systemic impacts and adapt decision-making processes and activities to reflect new knowledge of the potential risks. Systemic: Identify the systemic and cumulative impacts across value chains. Inclusive: Support investments, activities and projects that include, support and enhance local livelihoods, and engage effectively with relevant stakeholders, identifying, responding to, and mitigating any issues arising from affected parties. Cooperative: Promote cooperation between financial institutions and relevant stakeholders. Transparent: Report on investments’ positive and negative impacts and report on progress in terms of implementation of these Principles. Purposeful: Endeavor to direct investment / banking / insurance to projects and activities that contribute directly to the achievement of SDG 14 and other SDGs. Impactful: Support investments, projects and activities that go beyond the avoidance of harm to provide social, environmental and economic benefits from our ocean for both current and future generations. Precautionary: Assess the environmental and social risks and impacts of ocean investment, activities and projects based on sound scientific evidence and take precautionary principles when scientific data is insufficient. Diversified: Recognize the importance of small to medium enterprises in the ocean economy and develop diversified instruments to reach a wider range of small and large- scale sustainable development projects. Solution-driven: Support commercial innovations and encourage the spread of best practice thus developed. Partnering: Partner with public, private and non- government sector entities. Science-led: Develop knowledge and data on the potential risks and impacts associated with investment in the ocean economy; endeavor to share scientific information and data on the marine environment.

Advancing China's Sustainable Blue Economy 2025