48 African Development Bank — Advancing Climate Change Action and Green Growth in Africa the European Taxonomy (2019) of finance instruments (Europa, n.d) and by the Asian Development Bank (Development Asia, n.d.). UNEP FI has also developed Principles for Sustainable Insurance (PSI), Principles for Positive Impact Finance (PI), Principles for Responsible Banking (PRB) and Principles for Responsible Investment (PRI). Deeper analyses for five key sectors (seafood, ports, maritime transportation, renewable energy, and coastal and marine tourism, see Section 4) provide for greater nuances on investment pathways that may or may not work in each case (UNEPFI, 2020b). Finance models for sustainable development, being premised on sustainable ecological systems, are similar to those developed for conservation, particularly in recent years as conservation models increasingly include social and viability outcomes (Meyers et al, 2020). Which options may be used in a particular context depends on multiple contextual factors, the stakeholders and investors involved. A number of focused studies are emerging to promote blue economy investments, including under the European Union (van Aalst et al., 2018), and the Asian Development Bank (Yoshioka et al., 2020). They survey existing experiences to identify promising pathways for policy support to bridge the financing gap. The European Union study identified several funding types that are relevant to expand the blue economy, including grants for early stage developments, blended capital where complex risks require investors across a range of risk-return profiles, investment instruments suited to different blue economy sectors, corporate investors that have specific strategic focus, and state aid. Each has its strengths and weaknesses. They also consider a range of ‘platform structures’ for channelling blue economy investment. These include a dedicated blue economy fund; or focusing the fund through a variety of lenses or perspectives which might include: by sub-sectors that allow for specialization and subject focus, by the stage of operations (i.e. start-up, venture capital, expansion funds, etc`), or by geographic focus. They conclude though, that a broad umbrella Financial instruments used in a) Africa and the Middle East, and b) in different blue economy sectors (globally). 0% 0% 10% 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 90% 100% 100% Africa and Middle East Marine renewable energy Insurance Concessional financing (i.e. below market) Green/blue labelled bonds Shares (i.e. active or passive shareholding) Corporate financing (inc. corporate bonds and loans) Trade finances (inc. e.g. export-import guarantees) Private equity Debt conversion Working capital loans Derivatives Project bonds / Project finance Don’t know Flexible capital (e.g. convertible debt/equity) Risk mitigation instruments (e.g. first loss capital) Other Coastal and marine tourism Maritime transportation Ports Seafood A B Source: UNEPFI. (2020). Rising Tide: Mapping Ocean Finance for a New Decade. UNEP Sustainable Blue Economy Finance Initiative/European Commission, p. 79. <https://www.unepfi.org/publications/rising-tide/>
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