
Guidelines for blue finance: Guidance for financing the blue economy, building on the Green Bond Principles and the Green Loan Principles
This guidance document aims to provide a list of eligible use of proceeds to support private investments aligned with the Green Bond Principles and Green Loan Principles and contributing to Goals 6 and 14 of the United Nations Sustainable Development Goals — “Ensure availability and sustainable management of water and sanitation for all,” and “Conserve and sustainably use the oceans, seas and marine resources for sustainable development.” This document identifies eligible blue project categories to guide IFC’s investments to support the blue economy, in line with the Green Bond Principles and Green Loan Principles.
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OVERVIEW
Introduction
Blue finance represents a growing sector of sustainable finance, focusing on ocean-friendly investments and clean water initiatives. Instruments like blue bonds and blue loans channel funding into projects that contribute to Sustainable Development Goals (SDGs) 6 (clean water and sanitation) and 14 (life below water). These initiatives address critical challenges, including water scarcity, marine pollution, and ecosystem degradation. With the ocean economy projected to double to USD 3 trillion by 2030, employing 40 million people, innovative financing solutions are essential to support sustainable growth while preserving marine resources.
Blue finance guidance framework
The framework integrates principles from the Green Bond Principles (GBP) and Green Loan Principles (GLP), establishing a transparent structure to classify blue finance projects and avoid “blue-washing.” To qualify, projects must:
- Contribute substantially to SDGs 6 or 14 and align with specific target indicators, such as improving water efficiency and enhancing biodiversity.
- Minimise risks to other environmental priorities, including SDGs 2 (zero hunger), 7 (affordable and clean energy), 12 (responsible consumption), and 13 (climate action).
- Comply with robust Environmental, Social, and Governance (ESG) standards, including IFC Performance Standards and World Bank guidelines.
Building on the Green Bond Principles and Green Loan Principles
Blue finance builds upon GBP and GLP core principles, emphasising governance, eligibility, and impact reporting. These principles ensure that projects contribute measurably to SDGs 6 and 14 and maintain strict adherence to internationally recognised ESG criteria. Projects must clearly document measurable outcomes that exceed baseline levels and follow a structured framework to distinguish between green and blue components of financing.
Blue use of proceeds
The proceeds from blue finance instruments are allocated to projects mapped under GBP and GLP categories, with measurable impacts across several domains:
- Water supply and sanitation: Investments in efficient water treatment infrastructure, sustainable desalination plants, and advanced technologies that reduce water consumption or improve recycling.
- Pollution prevention and management: Initiatives to prevent agrochemical runoff, promote circular use of plastics, and manage waste in coastal and riverine ecosystems.
- Sustainable shipping: Projects like ballast water treatment systems, waste management facilities, and emission reduction technologies in maritime logistics.
- Fisheries and aquaculture: Sustainable practices certified by the Marine Stewardship Council or Aquaculture Stewardship Council, supporting eco-friendly production and processing.
- Marine ecosystem restoration: Efforts to restore coastal habitats using innovative materials and technologies, including biodegradable structures and drone monitoring systems.
- Offshore renewable energy: Investments in offshore wind farms incorporating biodiversity-enhancing features like artificial reefs.
- Sustainable tourism: Licensed, certified tourism projects that promote education and conservation near marine-protected areas.
On project selection
Projects must demonstrate alignment with GBP/GLP and explicitly contribute to SDGs 6 or 14, while minimising risks to other SDG priorities. Governance frameworks should detail the processes for selecting, assessing, and implementing eligible blue finance activities, ensuring compliance with internationally recognised sustainability standards.
On management of proceeds
Clear guidelines for managing proceeds are critical to maintaining transparency and alignment with GBP/GLP. Issuers should maintain a clear distinction between green and blue components of financing, with detailed reporting on allocation and usage.
On impact reporting
Impact reporting must adhere to ICMA’s standards, including allocation reports and outcome indicators. These indicators should reflect tangible progress, such as improved water quality, enhanced marine biodiversity, and reduced pollution levels. Comprehensive data collection and transparency are key to fostering stakeholder confidence.
On external review of blue finance
Independent external reviews are strongly recommended to verify alignment with GBP/GLP and ensure eligibility. In complex cases, the guidance suggests engaging internationally qualified experts in sustainable water management and marine sciences to provide robust evaluations.