10 things to know about the Blue SEA financial center in Southeast Asia

As the Asia-Pacific climate bank, the Asian Development Bank (ADB) is increasing funding for the health of the oceans and a sustainable blue economy, through the Blue SEA Finance Hub. The world’s oceans face increasing threats from uncontrolled pollution and unsustainable agricultural and aquaculture practices.

The countries of Southeast Asia are not only particularly vulnerable to these negative impacts, but are also among the biggest polluters. Recognizing the need for a regional initiative to enhance capacities, knowledge and projects that support healthy oceans and a sustainable blue economy, the ADB established the Blue SEA Funding Center at its Indonesian Resident Mission in November 2021.

The Hub is supported by the Association of Southeast Asian Nations (ASEAN) Catalytic Green Financing Mechanism (ACGF), which was launched in April 2019 to promote investments in green infrastructure in Southeast Asia.

The ADB and ACGF created the Blue SEA Finance Hub to help Southeast Asian governments develop and finance bankable ocean health projects and build a sustainable blue economy in the region.

The financing of blue infrastructure is a key concern to realize the true potential of the blue economy. The ADB estimates that $1.7 trillion annually is needed for green infrastructure in the Asia-Pacific region, including ocean health.

Southeast Asia has great potential for a vibrant blue economy due to its biodiversity and rich natural resources. The Blue SEA Finance Hub supports the region’s blue economy through catalytic financing and capacity building.

Here are 10 things to know about the Blue SEA Finance Hub:

1. The world’s oceans offer endless economic opportunities in sectors such as sustainable tourism, food production, waste treatment and sustainable coastal infrastructure.
2. But the health of the oceans is suffering the consequences of decades of unsustainable and relentless practices at sea and on land, such as overfishing, mining, pollution, waste dumping and human-induced climate change. It is estimated that 8 million tons of plastic end up in the ocean every year, mostly from Asia and the Pacific.

   

3. The blue economy market has its own challenges as it is currently in its early stages, but developing rapidly. One of the challenges is the absence of a widely accepted definition of what makes an investment “blue” and there are no collateral requirements when reporting the impact of an investment.
4. The financing of blue infrastructure is a key concern to realize the true potential of the blue economy. The ADB estimates that $1.7 trillion is needed annually for green infrastructure in the Asia-Pacific region, including those related to ocean health. Traditional means of financing cannot meet estimated needs. Innovative financing structures that can attract both public and private investment will be needed.
5. The ADB created the Blue SEA Finance Hub to help governments in Southeast Asia develop and access financing for bankable ocean health projects, supporting the innovative structuring of blue projects, strengthening government capacities, and helping small and medium-sized companies in the blue sectors to improve their business models and access financing.
6. The Blue SEA Finance Hub will help Southeast Asia reduce ocean pollution and adapt to the impacts of climate change by accelerating the development of a pipeline of “blue” projects worth at least $300 million by 2024 that can attract financing private and public.
7. The Hub was designed to support the ADB’s overarching Action Plan for Healthy Oceans and Sustainable Blue Economies, which aims to catalyze up to $5 billion in financing solutions and technical assistance for ocean health protection and projects. biodiversity conservation and marine economy through funding and support from ADB and its partners from 2019 to 2024. The Hub is a concrete pilot initiative, hosted in Indonesia but spanning several ASEAN countries.

   

8. The Center’s work is in line with the ADB’s Ocean Financing Initiative, which aims to accelerate blue investments in Asia and the Pacific by helping developing member countries catalyze financing for projects aimed at protecting and restoring marine ecosystems. and promote sustainable blue economies.
9. To achieve its goals, the Blue SEA Finance Hub will identify and structure ocean health projects to make them more bankable, ensure optimal risk sharing among those involved in the projects and, where necessary, ensure solvency to generate interest from public and private funding sources.
10. The Blue SEA Finance Hub will strengthen the capacities of central and local governments and state-owned companies in the identification and development of healthy oceans and blue projects, Sustainable Development Goal (SDG) 14, sustainable business approaches and mechanisms and innovative financial instruments. SDG 14 promotes the conservation and sustainable use of marine resources.