The International Finance Corporation (IFC), a member of the World Bank Group, is now extending its experience from green finance to blue finance and is targeting to scale the latter in next few years. Blue Bonds and Blue Loans are innovative financing instruments that raise and earmark funds for investments such as water and wastewater management, reducing ocean plastic pollution, marine ecosystem restoration, sustainable shipping, eco-friendly tourism, or offshore renewable energy.

Since 2020, IFC has provided more than 700 million dollars in blue loans and bonds to private sector financial institutions and corporates. IFC has facilitated blue bonds in Africa, Asia and Central and Eastern Europa (including a 300-million-dollar blue loan for Thailand’s Indorama Ventures). During 2022 it made two pioneer commitments in Latin American blue finance, with a 150-million-dollar loan to SABESP in Brazil to improve access to water and sanitation, and a 40 million dollar agreement with Banco International from Ecuador for a private-sector blue bond.

Also in 2022, IFC published “Guidelines for Blue Finance” to provide advice on blue project eligibility criteria, blue issuances, and blue lending in line with ICMA’s “Green Bond Principles” and “Green Loan Principles” and UN’s Sustainable Development Goals (SDGs) #6 and #14. Moreover, IFC and other international organizations such as ADB, UNEP FI, UN Global Compact and ICMA, are working together since June 2022 to provide a comprehensive global guidance on blue bonds to build investor confidence and catalyze investments that protect our oceans and the marine ecosystem.