Advancing China's Sustainable Blue Economy 2025

25Marine industryGreen insurance productProduct details Insurance function Traditional marine industry (fishery, shipping, ports, tourism, etc.)Hainan Tilapia Farming Income Insurance65The insurance liability covers income loss resulting from the death of tilapia due to natural disasters such as typhoons, heavy rains and floods, as well as losses incurred when the market purchase price falls below the target guarantee price specified in the contract. To qualify for coverage, farmers must trace the source of the seed, maintain appropriate breeding densities, ensure adequate breeding facilities, and adhere to standardized management practices. Claims will be denied if the use of illegal drugs or antibiotics exceeds regulatory limits.Loss compensation, industry sustainable transformation Ecosystems servicesMexico Quintana Roo Coral Reef Insurance66The insurance covers 160 kilometers of coral reefs, with payout funds activated in the event of a storm with wind speeds surpassing specified thresholds. These funds are used to finance reef restoration efforts conducted by pro - fessional protection teams.Risk management, loss compensation, capital financing Mangrove CCER Project Insurance67The insurance covers the loss of State Certified Emission Reduction (CCER) carbon sinkss in the Fujian Mangrove Provincial Nature Reserve. It aims to mitigate the financial uncertainty of CCER revenue resulting from natural disasters and accidents.Loss compensation, capital financingTable 2: Types and cases of innovative green insurance for marine economy 4.2.3 Insurance The insurance industry plays a crucial role in marine risk management, loss compensation, capital financing, and the sustainable transformation of the sector, facilitating a shift from resource consumption to ecological value. It has developed a multi-tiered risk mechanism covering traditional industries like fishing and shipping, emerging sectors such as offshore wind power, and marine ecosystems. Products like aquaculture income insurance and green ship insurance support the green transition of traditional industries, while full-process coverage is offered for emerging fields. Initiatives like mangrove insurance in the Philippines fund conservation efforts through premiums, reducing risk via proactive management. The industry has moved from economic payouts to ecological restoration, exemplified by Mexico’s hurricane-triggered coral reef insurance and Belize’s Marine Index Policy, which aid disaster recovery and economic resilience. In capital financing, the insurance sector mobilizes social capital for sustainable marine projects and uses credit enhancement tools like fishery carbon sink index insurance to support enterprise financing. Additionally, insurance drives innovation in green technologies, with products such as Skuld’s carbon emission pricing model incentivizing emission reductions and China United Property Insurance promoting eco-friendly farming through shellfish carbon sink insurance.67 68 69 67“今年翻塘了，但我还有钱过年”, The Paper, 2022, https:/ /www.thepaper.cn/newsDetail_forward_16658802 . 68 “Biodiversity and Ecosystems Services Index: measuring the value of nature”, Swiss Re, 2020, https:/ /www.swissre.com/institute/research/topics-and-risk-dialogues/climate-and-nat - ural-catastrophe-risk/expertise-publication-biodiversity-and-ecosystems-services.html#/ . 69“助力零碳进博 中国太保首创红树林CCER项目保险保障模式”, China Pacific Insurance Company , 2024, https:/ /www.cpic.com.cn/c/2024-11-19/1868053.shtml .4.2.4 Others 1) Funds Green funds support maritime sustainability through diverse funding sources and investment strategies. They balance environmental protection with economic development, focusing on ecosystems such as coral reefs and mangroves, and sectors such as fisheries and energy. Funding comes from government and public contributions, private capital, or a mix of both. Investment approaches vary geographically, with developed countries focusing on market-based funds and developing countries relying on international and policy funds. Finally, international funds focus more on global governance, sovereign funds on regional needs, and market- based funds on sustainable returns and innovation. 2) Financial leasing The financial leasing industry plays an important role in promoting technological innovation and environmental sustainability across the marine sector, particularly in the areas of marine engineering equipment, marine transport and marine fisheries. In maritime transport, green lease financing has enabled major projects such as the “Boqiang 3060” wind turbine installation vessel, highlighting the role of leasing in promoting sustainable maritime technologies. In marine fisheries, leasing promotes marine ranching activities, such as Suyin Financial Leasing supporting the construction of environmentally friendly multifunctional marine ranching platforms.