“The United Nations was not created in order to bring us to heaven, but in order to save us from hell” – Winston Churchill. At the time, Winston was referring to the scourge of war, genocide and other human right atrocities. Today, those words apply to the state of our oceans, the state of which directly affects the fate of humans and all species on Earth. 

During the 2022 UN Ocean Conference on June 29^th, 2022, a multilateral expert panel side event was organized by NGO Committee on Financing for Development with co-organizers including the General Board of Church and Society of The United Methodist Church, Fred Sullivan from Blue Ocean Future, Dominican Leadership Conference, PEAC Institute, Conference of NGOs in Consultative Relationship with the United Nations (CoNGO), Temple of Understanding, Africa Development Interchange Network, and United Religions Initiative. The panel discussed blue and thematic bonds and how to optimize them as building blocks towards a regenerative, sustainable ocean economy especially for the low-lying coastal communities and cities bearing the disproportionate percentage of the loss and damage. The Moderator was Ms. Anita Thomas, Chair, NGO Committee on Financing for Development; Representative to the UN, Women First International Fund and panelists included: 

• H.E. Mr. Ian Dereck Joseph Madeleine, Ambassador, Permanent Mission of Seychelles to the UN
• Mr. Stephen M. Liberatore, Head of ESG/Impact – Global Fixed Income for Nuveen, a private investor in the Seychelles blue bond
• Mr. Greg Fisk, Global Lead – Climate Risk and Resilience, Senior Principal Consultant, BMT
• Mr. Nicola Mercusa, Sustainable Finance Hub, Debt and Bond issuance expert advisor, UNDP
• H.E. Mr. Leon Kaulahao Siu, Minister of Foreign Affairs, Kingdom of the Hawaiian Islands
• Dr. Megan Davis, Ph.D., Research Professor, Florida Atlantic University, Harbor Branch Oceanographic Institute/ Queen Conch Lab 
• Ms. Melissa Garvey, Global Director, Ocean Protection, The Nature Conservancy (TNC)

Challenge – Minimal Progress Due to Lack of Finance

The expert panel highlighted that the lack of finance is the most critical component in addressing SDG14 Life Below Water and SDG13 Climate Action and Biodiversity. Mr. Mercusa pointed out that SDG 14 ‘Life Below Water’ is estimated to receive the lowest level of investment for all SDGs, however transformational changes through initiatives such as UNDP’s Ocean Promise and blue bonds provides a pathway to reverse this trend. There are up to 40 countries interested in blue bonds. With 2030 deadline of the 30×30 goals (agreed upon during the 2022 UN Biodiversity Conference) fast approaching, more needs to be done.  

Potential Solution– Blue Bonds 

Recent examples of this success are Seychelles initial blue bonds and subsequent bond financing, Belize debt conversation for the financial costs. H.E. Mr. Madeleine provided an overview of the Seychelles Blue Bond (the first blue bond issued) and pioneered a financial model for the SIDs according to the 30×30 goals. The marine areas will not only be protected, but the debt service payments will be lowered for Seychelles. The Seychelles CCAT Trust was developed out of the Blue Bonds and provides grants and research focused on innovation to preserve the marine diversity and help develop a coastal economy.  The SeyCCAT Trust was instrumental in helping the community weather the effects of COVID-19 on the local tourism economy. 

Blue bonds present the opportunity to scale direct and measurable investment into environmentally beneficial ocean projects. In order for blue bonds to succeed, there has to be effective public-private partnerships. Mr. Liberatore noted that education is key for investors to understand the space and issues that arise. Ms. Garvey added that accountability should be centered around the people and the planet over finance. Both Ms. Thomas and Mr. Siu agreed and stressed that a human-centric approach that includes indigenous communities (who are the most affected by climate change) will yield long-term results.  Mr. Fisk pointed out that accountability and education can be achieved by using a robust framework to measure ecosystem health and would require a stakeholder marine spatial planning process. The framework will guide the effectiveness of investment and generate employment opportunities for local communities. Dr. Davis added that using the right framework can lead to tangible ideas and in the process of creating it, the stakeholders will also discover more data points to add to create a robust framework that incorporates the life cycle and a diversified income base. 

We must move from win-win to a better outcome of happy happy – Amb Kiritibass? Mr. Sullivan concluded the panel that climate finance will be crucial going forward to creating a healthy ocean and healthy economies.