Financial Instruments Research Articles

The Effects of MiFID II on Voluntary Disclosure

We examine the effect of the Markets in Financial Instruments Directive (MiFID) II’s controversial unbundling provision on corporate voluntary disclosure. Although prior research has largely focused on changes in sell-side research post-MiFID II, changes in voluntary disclosure and their effects on the information environment are less known. We find that European Union (EU) firms significantly increased the propensity and frequency of management earnings guidance issuance after MiFID II enactment. This effect is more pronounced among firms experiencing a decline in the quantity of sell-side research or a reduction in the consumption and dissemination of analyst reports and is more muted among firms witnessing improvements in research quality. Furthermore, we find that post-MiFID earnings guidance by EU firms becomes more thorough and elicits stronger market reactions. Moreover, we demonstrate that the increased guidance effectively alleviates the negative liquidity effects of MiFID II. Collectively, we contribute to the ongoing debate on the efficacy of MiFID II’s unbundling provision by providing evidence that voluntary disclosure plays a key role in mitigating the unintended net negative consequences on the information environment following the regulation. This paper was accepted by Suraj Srinivasan, accounting. Funding: Financial support from the New York University Stern School of Business, Seoul National University, the Baruch College Zicklin School of Business, and George Washington University is gratefully acknowledged. C. Kim also received financial support from the Institute of Management Research of Seoul National University. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2023.00286 .

Social Aspects of the Formation of Household Assets as a Tool for the Reproduction of Trust

The article uses statistical and sociological analysis methods to study how households save and how families build up their financial assets. It explores how this behaviour can help restore trust in economic relationships. The study reveals the savings habits of the population as a key factor in transferring savings to the economy. However, in 2023, Russians didn’t fully use their savings potential securing the distribution of personal assets between banks and holding cash “on hand”. By increasing the financial assets of the population, we can help break the cycle of mistrust that is common in economic systems during the crisis. The study also highlights the importance of financial literacy for building trust. If households can successfully manage their finances, this will contribute to trust at both the macro and micro levels. The research also shows that only a small proportion of Russians today have the right investment attitudes, including long term investments. The willingness of individuals to invest their funds is primarily determined by their level of trust in financial institutions, rather than their income level. The absence of alternative financial instruments also doesn’t have a significant impact on the development of investment practices.

Building Healthcare Sector in Post-Pandemic Era: Potential Role of Islamic Social Finance

Islamic social finance instruments can be adopted to restore and achieve a healthy life and promote welfare after COVID-19, integrated with SDGs number three. As Islamic social finance instruments, Zakat, Infaq, Sadaqah, and Waqf play a significant role in solving marginalization and vulnerability that focus on local programs, thus impacting social and economic inclusion. Using a literature review approach, the objective of this paper is to examine the role of Islamic social finance instruments as alternative funding to achieve Sustainable Development Goals (SDGs) number three, "Good Health and Well-being," which is also in line with the recovery of COVID-19 in the healthcare sector. The results of this study indicate that Islamic Social Finance can solve the problem of economic funding due to the COVID-19 pandemic. In the short term, building and repairing primary health facilities, providing affordable health services, and providing access to health insurance for people experiencing poverty are actions that need to be realized immediately. As for the medium term, post-COVID-19, mental recovery and consultation efforts must be intensified. Investments in technology for telemedicine or telemedicine facilities and reforms in the post-pandemic COVID-19 health sector must be addressed and pursued. Based on current findings, this study recommends a synergy for all countries to jointly achieve the SDG number three target while restoring global socio-economic conditions post-COVID-19.

A COINTEGRATION RELATIONSHIP BETWEEN CRYPTOCURRENCIES AND FINANCIAL INSTRUMENTS UNDER STRUCTURAL BREAKS

A COINTEGRATION RELATIONSHIP BETWEEN CRYPTOCURRENCIES AND FINANCIAL INSTRUMENTS UNDER STRUCTURAL BREAKS

Crypto ecosystem: navigating the past, present, and future of decentralized finance

Abstract From Nakamoto’s genesis block, 15 years of technological advancements, new financial instruments, regulations, and emerging participants have defined the Crypto Ecosystem. This paper chronicles its development from the creation of Bitcoin to the present-day landscape of cryptocurrencies, tokens, and decentralized finance applications. It explores the foundational technologies, financial instruments, key players, and regulatory frameworks in Europe and the US. By critically assessing the current state of the crypto market, the paper identifies both the promises fulfilled and the challenges that remain. It contributes to the existing literature by providing a synthesized understanding of the crypto ecosystem, highlighting the interplay between technological advancements and financial market dynamics.

On the formation of a new world order

The thesis of the formation of a new world order is widespread in both Russian and foreign political discourse, but it needs to be substantiated. The rejection of the ‘old' world order also requires clarification: what exactly is unacceptable and what should be radically restructured. Since the end of the WWI, the original time marker of the existing world order, the question of its renewal has come up five or six times. Today, as always, it is important to assess the changes in the balance of power on the world stage. They affect (i) the main actors, their roles, activities, algorithms of behaviour; (ii) the tools at their disposal that can be used to interact with the international environment; (iii) new coalition rapprochements and new cleavages in the international arena; (iv) new global and regional balances (regarding military, economic, resource, scientific, technical and other potentials). The question is whether this results in the accumulation of a new quality by the international system, which requires its radical renewal, or whether the system is able to absorb changing realities, adapting to them and improving the existing algorithms of its own functioning. The time factor can work not only to accelerate new trends, but also to promote the inertia of the existing ones. In some areas (globalization, the role of multilateral institutions, arms control) the resources possessed by the existing international system by no means seem to be exhausted. Finally, the abstractly formulated idea of the need for a new world order does not clarify some problems of an existential nature: (i) the hierarchy of the international system and the consequences of its ‘softening,' (ii) the unequal availability of various elements of stability/power (technology, information, resources, financial instruments, human capital, movement of people, social stability, etc.) for different states and societies, (iii) the correlation of internal problems and relations with the outside world, (iv) the phenomenon of sovereign particularism. As topics for further discussion, briefly formulated criteria for sustainability, effectiveness, maturity and adaptive capabilities of the world order are proposed.

Healthcare financialisation in the Global South: examining the role of the World Bank Group in promoting public private partnerships in health in Africa

Abstract In recent development policy discourse, an ambition to deliver comprehensive healthcare to all citizens in the Global South via publicly financed provisioning systems has been replaced by calls for universal health coverage (UHC). At the heart of today’s promotion of UHC in the Global South is a strategy to involve private actors as providers and financiers of healthcare. This is presented as an apt approach to overcome an acute financing gap to achieve the Sustainable Development Goals (SDGs), including SDG 3 on attaining UHC. As part of these efforts, public private partnerships (PPPs) are celebrated as an efficient way of mobilising private sector resources and expertise, including in Africa. The World Bank Group (WBG), as a lead actor in international development, is at the forefront of promoting such a policy solution, despite mounting evidence of the pernicious implications of the increased prevalence of health PPPs across both Global North and South. Our contribution to this Special Issue on healthcare financialisation is twofold. First, we demonstrate how health PPPs can act as vehicles of healthcare financialisation, posing significant threats to equitable healthcare delivery. Second, we examine the WBG’s role in promoting health PPPs in Africa. By doing so, we shed light on the ways in which health PPPs can serve as an important channel for the advancement of financial actors, instruments and practices in national healthcare systems. The WBG’s use of diverse tools in support of health PPPs significantly impacts African healthcare systems, highlighting the scope for ‘financialisation by development policies’.

Does green innovation facilitate buyer firms’ attainment of trade credit from suppliers? A signalling theory perspective

PurposeAs a crucial supply chain financing instrument, trade credit has become increasingly important for firms to enhance financial flows in supply chains. Yet, scant research has examined how firms’ green innovation affects the attainment of trade credit from their suppliers. To bridge this gap, this study aims to draw on signalling theory to investigate the impacts of incremental green innovation (IGI) and radical green innovation (RGI) on trade credit and the contingent roles of supplier concentration and industry dynamism.Design/methodology/approachUsing a data set of 3,302 Chinese listed manufacturing companies from 2007 to 2021, our research adopts fixed-effect regression models to test the proposed hypotheses.FindingsThe authors find that both IGI and RGI exert a positive effect on trade credit. Interestingly, supplier concentration weakens the association between RGI and trade credit, whereas it does not significantly influence the association between IGI and trade credit. Moreover, industry dynamism attenuates the relationship between IGI and trade credit, whereas it does not significantly alter the relationship between RGI and trade credit.Originality/valueThe paper extends the supply chain finance literature by applying signalling theory to uncover the effects of IGI and RGI on trade credit and the distinct contingency roles of supplier concentration and industry dynamism. It also provides supply chain managers with important implications regarding how to tailor the strategies of implementing different types of green innovation to acquire more trade credit in different situations.

Assessment of the Sustainable Supply Chain Finance Factors

In a scientific context, the main focus of sustainable supply chain management is on the creation and optimization of product and information flows; however, the management of financial flows receives insufficient attention. All effectively developed supply chain activities may collapse as a result of inadequate management of sustainable supply chain financial processes. In order to successfully develop systematically functioning processes of the international supply chain, it is necessary to analyze how to apply financing instruments in a targeted and effective manner. Adequate financing of the sustainable supply chain is the effect of great prospects and competitive advantage not only on a national scale but also in international markets. The aim of this research was to assess the importance of financing instruments used in international sustainable supply chain finance. Correlation-regression analysis was chosen for the research, which was designed to assess the factors of financial instruments of the dairy industry sustainable supply chain using the example of a company. The results showed that the key factor in the supply chain processes of the dairy products production company was the turnover ratio of buyers’ debts; therefore, in order for the company to improve the indicators of the sustainable supply chain, it should allocate more financing specifically to the turnover ratio of buyers’ debts.

CHALLENGES AND OPPORTUNITIES FOR SUSTAINABLE INDUSTRIAL DEVELOPMENT IN INDIA'S FINANCIAL SECTOR

Sustainable industrial development in India faces significant challenges and opportunities within the financial sector. This study explores the interplay between financial markets and sustainable practices in industries, emphasizing the need for financial instruments that support environmental sustainability. Key challenges include limited access to green finance, inadequate regulatory frameworks, and a lack of awareness among businesses regarding sustainability practices. Moreover, the current financial institutions frequently emphasize immediate profits rather than long-term sustainability objectives. However, opportunities for enhancing sustainable industrial development exist through the promotion of green bonds, impact investing, and public-private partnerships. By analyzing case studies and relevant literature, this research highlights successful initiatives that have leveraged financial markets to foster sustainability in industrial practices. The findings suggest that aligning financial incentives with sustainable development goals can significantly contribute to the growth of green industries in India. This study provides valuable insights for policymakers and financial institutions aiming to promote a more sustainable industrial landscape.

Research on the Mechanism and Development Path of Green Finance Enabling Rural Revitalization under the Goal of "Double Carbon"

Green development is the only way to implement the strategy of Rural Revitalization. The dynamic mechanism of green financial innovation serving rural revitalization is in line with the theme of green development. Green financial innovation can effectively promote industrial prosperity, brew civilized rural style, achieve effective governance and create livable ecology, and finally achieve prosperity. This paper aims to study green financial instruments and derivatives represented by carbon finance under the goal of "double carbon". Then through the analysis of the dilemma of today's green financial market, this paper studies the mechanism of green finance enabling rural revitalization, and proposes that we should vigorously innovate and develop carbon financial derivatives based on forest deduction projects. Finally, it better explains how green low-carbon finance can achieve the core goal of Rural Revitalization under the background of urban and rural integration and development.

Integrating asset and liability management with Islamic Finance: A strategic framework for global financial institutions

The integration of Asset and Liability Management (ALM) with Islamic finance presents a strategic opportunity for global financial institutions to optimize their financial stability, capital efficiency, and risk management, while adhering to Shariah principles. This review explores how leveraging Islamic financial instruments, such as Sukuk, Mudarabah, and Murabaha, can enhance traditional ALM frameworks by focusing on ethical investing, risk-sharing, and asset-backed financing. In contrast to conventional ALM, which relies heavily on interest-bearing instruments, Islamic finance mandates compliance with principles that prohibit riba (interest) and excessive uncertainty (gharar), posing unique challenges and opportunities for treasury operations. This is a strategic framework for integrating ALM with Islamic finance, emphasizing liquidity management, capital structure optimization, and risk mitigation. It highlights the role of Islamic capital markets, such as Sukuk issuance, in providing alternative funding sources and promoting sustainable growth. Additionally, the review examines how financial institutions can leverage fintech and digital innovations to streamline Shariah-compliant ALM practices, ensuring efficient liquidity management and compliance with evolving regulatory requirements. Ultimately, this review concludes that integrating ALM with Islamic finance not only supports the growth of Islamic banking but also offers conventional financial institutions a pathway toward ethical and sustainable financial management. By adopting this integrated approach, institutions can achieve long-term stability, optimize returns, and align with the growing demand for socially responsible investing in global markets. Keywords: Integrating Asset, Liability Management Strategic Framework, Global Financial Institutions.

The inconsistency of international sanctions and measures of adaptation to them on the part of national economies

The article is devoted to the study of the application of sanctions in world practice on the example of countries such as North Korea, Iran and Russia. Historical examples of sanctions, their effectiveness, as well as their impact on the financial market, economy and politics of sanctioned states are considered. The article analyzes not only the negative effects of sanctions on the economy, but also the successful adaptation measures of countries in response to the imposed restrictions, including import substitution, the use of alternative trade routes, national currencies and various financial instruments. Special attention is paid to modern sanctions against Russia and their impact on the financial, oil and gas sectors and the transport industry

FORMATION OF INSTITUTIONAL SUPPORT FOR INNOVATIVE DEVELOPMENT OF WEAPONS AND MILITARY EQUIPMENT IN UKRAINE

Innovations and the scale of their implementation in the sphere of defense and security, including the defense industry sector, are the fundamental basis for the development of national Armed Forces. This is especially relevant in the context of a full-scale war in the center of Europe and the general aggravation of military confrontation between the leading centers of power, which in turn has led to the transformation of national security strategies and military doctrines. From the perspective of ensuring the high-tech nature of the defense industry sector, this is also a prerequisite for the accelerated innovative modernization of the national economy, which is implemented in particular through mechanisms for the commercialization of military technologies and ensuring their wider application in civilian developments as dual-purpose innovations. The article is devoted to the study of the state of institutional support for the development of high-tech weapons and military equipment in Ukraine. The features of an effective institutional environment for the development of defense innovations are formulated. A cross-country analysis of the institutional transformation of defense and security sphere, including the development of high-tech weapons and military equipment, is carried out. The defining features of the world's leading countries in stimulating innovations in the field of defense and security are highlighted. The institutional environment of the European Union and Ukraine in the field of defense innovations is presented in the form of a matrix model. It is substantiated that the innovative development of the defense sector is characterized by a dual nature. On the one hand, the defense sector is a material embodiment of the state's monopoly obligation to protect the sovereignty and territorial integrity of the country, which determines its certain isolation, including due to the need to comply with state secret norms. On the other hand, it is the defense-industrial complex that is a significant driver of economic development and innovative progress in general, since it is this industry that is capable of creating additional closed cycles of expanded reproduction at the level of the national economy. It is proven that currently the capabilities of the domestic defense industry significantly exceed the state's purchasing capabilities. The factors of the influence of the institutional environment on the field of defense innovations are systematized. The factors hindering the progressive development of the defense innovation sector include: the lack of long-term planning for weapons procurement, as this blocks development, leads to higher product prices and a decrease in production volumes; limited financial resources of the state for the purchase of domestic weapons and military equipment and a narrow list of financial instruments applied to private defense enterprises; personnel shortage in the industry, which limits the possibilities for growth and implementation of high- tech projects in the defense innovation sector.

Testing as a Way to Protect the Rights of Non-Qualified Investors through a Case Study of Options

This article examines the effectiveness of testing to protect the rights and legitimate interests of non-qualified investors in the stock market based on the analysis of tests related to options trading. The rapid advance of digital technologies has reshaped all areas of public life, including economic relations governing exchange-traded funds. The automation of trading processes for stocks, bonds, options, and other financial instruments has attracted an increasing number of participants to the stock market. However, the low levels of financial literacy among them raise concerns. To mitigate potential risks, the state must develop and implement special mechanisms, methods, and protective measures (both legal and educational) that would enable non-qualified investors to fully exercise their rights and safeguard their legitimate interests, empowering them to navigate the stock market effectively and confidently, without fearing adverse consequences such as financial losses, debt, or bankruptcy due to legal and economic illiteracy. The obtained results show that the organization of testing for granting access to options trading is an effective solution to the problem of protecting non-qualified investors in the stock market.

Financial technologies as an object of financial and legal regulation

The article analyses financial technologies as an object of financial and legal regulation in the context of globalisation and development of the digital economy. The author examines the essence and features of financial technologies, their development, as well as the problems arising in the process of their implementation and application. The article examines how the rapid development of innovative financial instruments, in particular cryptocurrencies, blockchain technologies, mobile payment systems and systems based on artificial intelligence, poses new challenges and requirements to legal institutions. In particular, the article examines the stages of development of financial technologies, ranging from traditional banking operations to the latest digital financial instruments that are actively changing financial markets and the structure of traditional financial institutions. An important place is occupied by the analysis of legal issues related to the need to adapt national and international norms to new realities, in particular, insufficient regulation of a number of financial innovations, such as cryptocurrencies, decentralised financial systems, etc. Given the high level of rapidly developing innovations, the article emphasises the need to create specialised legislative mechanisms and regulations for effective regulation of financial technologies. The authors pay special attention to the experience of international practice, in particular, legislative initiatives of the European Union, where the introduction of regulations such as PSD2 has contributed to the development of new payment systems and technologies. In particular, the author emphasises the importance of legal support for the security of financial transactions, protection of users’ rights and prevention of risks associated with the use of new technologies. The article concludes with conclusions on the need for a comprehensive approach to the legal regulation of financial technologies, which will ensure stability, transparency and security of financial markets. The authors emphasise that an important component of this process is the interaction of government agencies, international organisations and financial institutions to create a unified legal environment that will promote innovation in the financial sector and protect the rights and interests of all financial market.

ФІНАНСОВІ ІНСТРУМЕНТИ ЯК ВАЖЛИВА ДОМІНАНТА ЗАБЕЗПЕЧЕННЯ ІНКЛЮЗИВНОГО РОЗВИТКУ ТЕРИТОРІАЛЬНИХ ГРОМАД

Introduction. In the context of the latest transformational challenges, the problem of ensuring inclusive development of territorial communities is becoming increasingly relevant, and it is advisable to develop innovative approaches to the use of financial instruments in managing socio-economic development at the local level. The purpose of the article is to develop the conceptual framework for the use of financial instruments by public authorities as a means of management to ensure the inclusive development of territorial communities. Methods. The methodology of the study is based on the use of dialectical and process approaches, methods of induction and deduction, analysis and synthesis - when considering the content and specification of the essence of the concept of “inclusive development of territorial communities” and determining the imperative of this type of socio-economic development; structural and functional approach and methods of theoretical generalization, scientific abstraction, systematization, argumentation - to develop a conceptual model of the use of financial instruments as a dominant factor in ensuring inclusive development of territorial communities. Results. Based on the generalization of scientific views and the use of the process approach, the author's own definition of the concept of “inclusive development of territorial communities” is formed. The study of the key aspects of the concepts of inclusive development, barrier-free, integrated and sustainable development, and current global challenges and threats made it possible to outline the imperatives of inclusive development of territorial communities that should be taken into account by public authorities when choosing financial instruments. The use of the structural-functional approach made it possible to consider financial instruments for the inclusive development of territorial communities as a means of managing socio-economic phenomena and processes, which result in the implementation of the principles of financial policy aimed at the inclusive development of territorial communities. The article reveals the dualistic nature of the impact of financial instruments for inclusive development of territorial communities on the object of management from the standpoint of their provisioning, allocative and regulatory effects. Conclusions. Financial instruments are an important dominant of the inclusive development of territorial communities. It is through the dualistic nature of their impact on the object of management, taking into account the imperative of inclusive development, the priorities of the State regional policy and strategies for the development of territorial communities, that the goal of managing socio-economic development at the local level is achieved.

ФОРМУВАННЯ МЕХАНІЗМІВ ПУБЛІЧНОГО ІНВЕСТУВАННЯ ПРОЄКТІВ РЕГІОНАЛЬНОГО РОЗВИТКУ: КОНЦЕПТУАЛЬНИЙ БАЗИС

Introduction. The development of mechanisms for public investment in regional development projects is an important task of modern economic policy in the context of globalization, decentralization, and the growing role of regions as centers of economic growth. The effectiveness of these mechanisms affects not only the progress of individual territories but also the sustainable development of the national economy as a whole. The necessary to study this topic is due, first, to the complexity of the process of forming public investment mechanisms: modern economic theory offers a wide range of approaches to solving this problem, but their adaptation to the realities of Ukraine requires additional research. Secondly, the insufficient use of the conceptual framework: the formation of new investment mechanisms should be based on scientifically sound concepts and take into account the best international practices. Third, the lack of an integrated approach: existing mechanisms are fragmented and do not always take into account the specifics of the regions, which reduces their effectiveness. Fourth, the low level of involvement of innovative financial instruments, such as public-private partnerships, development bonds, or grant funding. Fifth, the need to prepare policy recommendations: the results of the study will contribute to the development of effective tools to support regional development based on scientific analysis. Objective. The purpose of the article is to comprehensively study and build mechanisms for public investment in regional development projects. Methods. The methodological basis of the study is the theoretical provisions of economic and financial sciences, works of famous scientists. To solve the research tasks, the paper uses the dialectical method of scientific knowledge, methods of empirical and theoretical research, in particular, conceptual and logical analysis and a systematic approach. Results. Practical testing of the state policy, including at the regional and local levels, involves the use of both complex and purely functional mechanisms, tools, and means. The mechanism as the most systematic means of regulation is considered as a controlled set of elements (subjects, objects, purpose, goals, objectives, functions, principles, means, measures, tools for monitoring, control and adjustment, etc.) used to implement and solve public administration tasks in the relevant functional or other sphere of development of the state, its regions, territories. At the same time, the achievement of the general goal and policy objectives in such a complex area as public investment in regional development projects requires the use of a certain holistic system of mechanisms for such purposes, the basic of which are: institutional and legal, institutional and organizational, infrastructure, economic, social and psychological, monitoring and control. Conclusions. The formation and implementation of each of these mechanisms have their own clearly defined goals and objectives, which are generally subordinated to the general goal of the State policy in the analyzed area - the public investment institution's acting as a powerful factor in the development of communities, territories, and regions of the country.

Measuring and reporting corporate actions in international financial statements: Combined instruments

Subject. This article discusses the mechanism for the formation of financial results of corporate actions with convertible bonds in the issuer's financial statements in accordance with the requirements of International Financial Reporting Standards (IFRS). Objectives. The article aims to improve and develop mathematical estimation tools for reflecting corporate actions with convertible bonds in the issuer's financial statements both on the part of the issuer and on the part of investors that meet the requirements of IFRS. Methods. For the study, I used models of financial mathematics, situational and dynamic approaches in systems analysis, as well as the methods of tabular inter­pretation and visualization. Results. The article proposes a formed set of calculation and estimation algorithms for combined financial instruments, based on the procedures of component-by-component assessment and the formation of a number of key accounting indicators in accordance with IFRS. The practical application of these algorithms based on mathematical estimation is illustrated by examples related to certain corporate actions of both the issuer and investors. Conclusions. The significance of this study lies in the development of scientific and applied tools, including estimation and accounting procedures that can be used by both Russian residents and international non-resident companies in the process of operating in the financial markets. The proposed economic and mathematical solutions are applicable for the purpose of preparing financial state­ments in accordance with IFRS at virtually any point in time, including cases where previous statements were not created.

Parametric insurance for climate adaptation in fisheries and aquaculture

Abstract Ensuring resilience and adaptability of the seafood sector in the face of accelerating climate change involves risk management and risk reduction. In a world where climate patterns are rapidly evolving, innovative financial instruments have a role to play in managing environmental risks and reducing exposure to these risks through climate adaptation. Here, we consider the application of parametric insurance—when a predetermined amount is paid out based on parameters chosen based on expected losses associated with extreme events. We offer insights into its utility, implementation, and limitations. We emphasise the role of ocean forecasting in developing and pricing parametric insurance products to help mitigate and adapt to climate-related risks in aquaculture and fisheries. Forecasting is essential for anticipating changing environmental conditions at a range of spatial and temporal scales and thus informing decision-making regarding resource allocation and adaptation strategies. Through both climate-aware insurance policy design and the provision of education, capacity-building programs, and financial support for industry transition, parametric insurance has the potential to help seafood producers navigate the challenges posed by climate change. Use of parametric insurance can facilitate a managed retreat from vulnerable or non-viable areas to more sustainable alternatives or livelihoods by reducing climate risk in a measured environment. This approach can also contribute to the long-term resilience of seafood industries and coastal communities while protecting the health of marine ecosystems.