Planet Tracker Proposes Blue Recovery Bond

Non-profit financial think tank Planet Tracker has launched a new framework and interactive tool for fisheries to gauge their suitability for a ‘Blue Recovery Bond’. The proposed recovery bond would see financial institutions provide an upfront investment to fishing firms to fund a temporary reduction in fishing pressure. Companies would then repay investors through a levy on the catch once fish populations have recovered. Seafood demand is forecast to rise to 267.5 million tonnes by 2050, an increase from 157.4 million in 2020, which is “likely to push many fish stocks to unsustainable levels”. François Mosnier, Head of the Oceans Programme at Planet Tracker, said: “Fishers and investors in fishing companies rely on healthy ecosystems. With a Blue Recovery Bond, the interests of investors, fishers and fish are aligned. Returns can be high since fish populations regenerate quickly.” The Crown Estate, Blue Marine Foundation, Finance Earth and Pollination recently published a joint report that highlighted the key barriers and potential solutions to developing high-integrity natural capital markets in the marine environment across the UK. The objective of the report is to build consensus for these barriers and solutions to “unlock vital investment in the restoration of marine and coastal ecosystems”. The finance gap to meet the UK’s nature-related outcomes is estimated to be at least between £44 billion (US$53.7 billion) and £97 billion over the next 10 years. Earlier this week, the Philippine Securities and Exchange Commission issued new guidelines on the issuance of blue bonds, as part of its efforts to promote sustainability in the corporate sector. The guidelines set out eligibility criteria for blue projects and activities and are based on International Finance Corporation’s Blue Finance Guidance Framework and Asian Development Bank’s Green and Blue Bond Framework. 

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