During the recent UN Ocean Conference in Nice I was part of UNIDO’s event on Advancing Blue Industry for Sustainable Development. I highlighted that sustainable blue industry is intrinsically connected to sustainable blue finance.

💙 This was a particularly exciting event for me personally because last year I supported the United Nations Industrial Development Organization (UNIDO) on its Blue Industry strategy, culminating in the publication of Blueprint for Sustainable Development: UNIDOs Blue Industry Contribution to the Blue Economy Agenda. Read the report here

🌊 Having focused on blue-finance enablers and de-risking at the Blue Economy and Finance Forum, I was asked how UNIDOs new Blue Industry Framework can make such instruments more effective and impactful. I focused on four key overarching risks for business and finance in the blue economy:

1) regulatory uncertainty

2) fragmented markets

3) a shortage of bankable projects

4) climate risks

💡 UNIDOs Blue Industry framework identifies several critical conditions to create an enabling environment for Blue Industry to thrive – and these conditions will also be critical to address the key blue-economy risks identified above:

• Strong governance and policies: UNIDO can make a vital contribution in addressing regulatory uncertainty and creating stronger blue-economy governance through its work on agenda-setting, convening and capacity-building. In particular, UNIDO is building a consensus on Blue Industry, creates policy coherence through benchmarking, promotes quality industrial statistics, supports institutional capacity-building, and helps strengthen monitoring and accounting systems. These are critical enablers to reduce regulatory uncertainty in areas such as fisheries, aquaculture, tourism, and marine renewable energy. This work also aligns well with UNEP FIs Sustainable Blue Economy Finance Initiative, which helps mobilise, mainstream and scale finance for a sustainable blue economy, particularly through its guidance on blue-economy sectors and activities (more on SBE FI here).

• Industry competitiveness: Capacity-building and knowledge-sharing are core competencies of UNIDO. Examples include its work on certification, circular economy, renewable energy and other areas. UNIDO can also help to facilitate industry access to essential knowledge on the blue economy and strengthen competitiveness among small and medium-sized enterprises. This work on industry competitiveness is critical in dealing with fragmented markets, helping to create robust (i.e. environmentally, socially and economically sustainable) business models and also helps to create investable projects via de-risking of projects (e.g. through blended finance and public-private partnerships). An example is UNIDOs work on harmonisation of standards in its CAPFISH Capture: Post-harvest fisheries development project in Cambodia.

• Market conditions and pull: UNIDOs work on the blue economy often involves cross-sectoral linkages, spanning across regional and global value chains and building a Blue Industry ecosystem. This integrative capacity can help to address the issue of fragmented markets. It can also help to facilitate finance, e.g. through impact investment, and support establishing an enabling environment via strengthening infrastructure conditions. An example of connecting between blue-economy sectors is UNIDOs work on integrated polyculture farming combining shrimp farming and mangrove restoration in Indonesia. There are also many other opportunities, for example integrating offshore wind energy production and aquaculture as well as connecting eco-tourism and fisheries.

• Environmental and social equality and inclusion: UNIDOs blue-economy projects integrate the concerns of women, youth and disadvantaged groups as well as local and coastal needs in areas such as access to water and economic opportunities. This inclusive approach can make projects more investable because it reduces risks (e.g. climate, operational, physical, regulatory and reputational risks). For example, UNIDOs Programme for Improving Fisheries Governance and Blue Economy Trade Corridors in the SADC Region (PROFISHBLUE) includes capacity-building and training programmes for value-chain actors, with a particular focus on women and youth-led small and medium enterprises. Blue-finance instruments also increasingly integrate wider social and economic inclusion dimensions, for example the recent blue bond in Peru (which focuses on access to sanitation and clean water) as well as blue bond frameworks such as the guidance UNEP FI collaborated on with ICMA and other partners (more here).

Great to be part of this session, and looking forward to continuing to collaborate to ensure Blue Industry and Blue Finance are aligned and working hand in hand in building a regenerative and sustainable blue economy!