Financing the Blue Economy in the Wider Caribbean

Abstract

The Blue economy impacts the livelihoods of many Caribbean people, particularly those living at or near the coast. However, to realise the opportunities of the Blue Economy, the Caribbean requires funding, awareness and technical capacity and a more supportive policy environment. Financing investments in the Blue Economy will entail more than what traditional domestic resources and traditional international sources of finance can provide. In the absence of innovative and practical financing strategies, financing will be one of the most important factors inhibiting the ability of the Caribbean to invest in this potentially new economic paradigm. A conscious effort must be made to develop capacities, policies and strategies that will enable countries to leverage alternative sources of finance, such as international climate and environment funds. Options around blended finance, blue and development impact bonds, as well as digital resources such as Fintech present practical opportunities. Innovations used in the Green Economy may also be applicable to the Blue Economy such as debt swaps. The Caribbean must therefore improve national capacities and practices, align resources more strategically and align national development plans to Blue Economy priorities in order to leverage available resources, and also implement viable projects.