Proposing regulatory-driven blue finance mechanism for blue economy development

Yoshioka, Nagisa; Wu, Hsing Hao; Huang, Michael C.; Tanaka, Hajime Working Paper Proposing regulatory-driven blue finance mechanism for blue economy development ADBI Working Paper Series, No. 1157 Provided in Cooperation with: Asian Development Bank Institute (ADBI), Tokyo Suggested Citation: Yoshioka, Nagisa; Wu, Hsing Hao; Huang, Michael C.; Tanaka, Hajime (2020) : Proposing regulatory-driven blue finance mechanism for blue economy development, ADBI Working Paper Series, No. 1157, Asian Development Bank Institute (ADBI), Tokyo This Version is available at: https://hdl.handle.net/10419/238514 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/3.0/igo/ ADBI Working Paper Series PROPOSING REGULATORY-DRIVEN BLUE FINANCE MECHANISM FOR BLUE ECONOMY DEVELOPMENT Nagisa Yoshioka, Hsing Hao Wu, Michael C. Huang, and Hajime Tanaka No. 1157 June 2020 Asian Development Bank Institute The Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI’s working papers reflect initial ideas on a topic and are posted online for discussion. Some working papers may develop into other forms of publication. In this report, “$” refers to United States dollars. Funding: This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors. Suggested citation: Yoshioka, N., H. H. Wu, M. C. Huang, and H. Tanaka. 2020. Proposing Regulatory-Driven Blue Finance Mechanism for Blue Economy Development. ADBI Working Paper 1157. Tokyo: Asian Development Bank Institute. Available: https://www.adb.org/publications/proposingregulatory-driven-blue-finance-mechanism-blue-economy-development Please contact the authors for information about this paper. Email: [email protected] Nagisa Yoshioka and Hsing Hao Wu are research associates at the Ocean Policy Research Institute of the Sasakawa Peace Foundation in Tokyo. Michael C. Huang is a research fellow at the Ocean Policy Research Institute of the Sasakawa Peace Foundation. Hajime Tanaka is an associate professor at the Economic and Financial Law Department of the National University of Kaohsiung. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. Working papers are subject to formal revision and correction before they are finalized and considered published. Asian Development Bank Institute Kasumigaseki Building, 8th Floor 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan Tel: +81-3-3593-5500 Fax: +81-3-3593-5571 URL: www.adbi.org E-mail: [email protected] © 2020 Asian Development Bank Institute ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka Abstract The ocean is being jeopardized because of the adverse effects of climate change and human activities, such as marine plastic pollution, extreme weather events, sea level rises, and others. In addressing these ocean risks, ensuring sufficient finance to sustain the ocean economy is an ever-present challenge, particularly for those vulnerable regions, coastal communities, and small island developing states. Blue Finance, as a concept, is thus critical to ensure sustainability and conservation of the marine ecosystem and resources aligned with economic growth. Ocean sustainability has attracted global finance initiated by multilateral development banks and international institutions. This paper explores the interconnection between stakeholders among agents in the Blue Finance mechanism to illustrate incentives to increase private investment in addition to public donations in financing ocean health protection and boosting the blue economy. We then attempt to propose potential regulatory and institutional arrangements incorporating the concept of the blue financing principles in the context of the relevant legal regimes concerning marine governance both at the international and domestic levels. We further elaborate on the potentials of these legal and institutional arrangements to provide incentives for increasing private investment in marine development programs seeking economic growth and sustainability. Keywords: Blue Finance, blue economy, climate change, ocean sustainability, ocean and coastal resilience JEL Classification: G28, K33, O44 ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka Contents 1. INTRODUCTION: BLUE ECONOMY AND OCEAN SUSTAINABILITY ....................... 1 2. FINANCING THE BLUE ECONOMY: BLUE FINANCE ................................................ 2 3. EVOLUTION OF THE BLUE ECONOMY AND ITS STATUS QUO IN INTERNATIONAL LAW............................................................................................. 4 3.1 From Economic Concept to Operational Principle ............................................ 4 3.2 The Current Blue Finance Practices ................................................................. 5 4. THE FRAMING OF THE BLUE FINANCE MECHANISM AND IMPLEMENTATION... 7 4.1 Stakeholders in the Mechanism ........................................................................ 7 4.2 Regulatory Approach by International Law ....................................................... 9 4.3 Proposed Blue Finance mechanism ................................................................ 10 5. DISCUSSION ............................................................................................................... 11 6. CONCLUSION ............................................................................................................. 12 REFERENCES ........................................................................................................................ 13 ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka 1 1. INTRODUCTION: BLUE ECONOMY AND OCEAN SUSTAINABILITY Our economy significantly depends on a healthy coast and ocean, which is particularly true for independent island nations. The economy associated with the ocean has grown in importance around the globe. The OECD 2016 report titled “The Ocean Economy in 2030” suggests that the market size of the ocean economy could reach more than $3 trillion and approximately 40 million full-time employed people by 2030, even in a business-as-usual scenario (OECD 2016). The report further predicts that particularly significant growth of value added is expected in marine aquaculture, offshore wind farming, fish processing, and shipbuilding and repair. On the other hand, the fastest growth in jobs is expected in offshore wind energy, marine aquaculture, fish processing, and port logistic activities. Furthermore, the EU’s economic report 2019 indicates that all commercial activities related to oceans generated 174 billion euro of value added and job creation for nearly 3.5 million people (European Commission 2019). Above all, the fact that small island developing States (SIDS) are profoundly blessed with ocean resources provides a clue to the promotion and sustaining of their economic prosperity. In Pacific SIDS, fishing can produce between 30% and 80% of exports and GDP through their large exclusive economic zones (EEZs). Global anthropogenic environmental changes, however, have undermined the health of the world’s oceans more than ever before. For instance, marine plastic and microplastic pollution seems to be one of the most urgent threats impacting ocean health (Alava 2019). In 2019, the Intergovernmental Panel on Climate Change (IPCC) issued the Special Report on the Ocean and Cryosphere (SROCC), warning the unprecedented ocean conditions over the 21st century (Pörtner et al. 2019). The SROCC projects that the impact of reductions in ocean health on the global economy will be $428 billion per year by 2050, and $1,979 trillion per year by 2100. Sustaining ocean health is becoming increasingly significant as the debate on climate change is escalating. The impacts of climate change will decrease the productivity and change the spatial distribution of marine species, and cause the loss of coral reef cover and tourism values as well, which will undermine the economic potential, particularly in SIDS (Gaines et al. 2019). Climate change is a shared global challenge as we face the likelihood of an extremely adverse outcome, which could be reduced if many participants took action (Ostrom 2010). Therefore, encouraging polycentric efforts to mitigate such risks by facilitating various policies. Basurto, Gelcich, and Ostrom (2013) proposed a framework for complex social-ecological systems and indicated that such governance mechanism indicates that the challenges to the development of a social-ecological system framework could be a diagnostic tool for knowledge accumulation. In this context, the “blue economy” as a concept has emerged from the demand of the marine ecosystem and resources aligned with the economic growth. The idea of the blue economy emerged directly as the marine counterpart to the green economy, which argues that sustainable development could result in “improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.” The blue economy refers to the “sustainable use of ocean resources for economic growth, improved livelihoods, employment, and ocean ecosystem health” (World Bank and UNDESA 2017). OPRI (2019) indicates that such a concept has been attracting international attention as a policy to revitalize the economy and promote the growth of local communities collectively to preserve the oceanic environment and resources. The UN World Ocean Conference also recognized the importance of fostering “ocean-based economies” in 2017. ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka 2 The blue economy calls explicitly for new ocean development for social equity and ecological sustainability, which is equivalent to economic growth. Many of us certainly want to live in a world where everyone has the opportunity not only to get by but to prosper in this regard. It should be recognized that economic growth has a ceiling. Nevertheless, an avenue for social equity and ecological sustainability are the ultimate purposes of development. Policies and practices affecting the sustainable ocean and coastal resource management decisions should be informed by the perspectives and tools of economics and based on reliable, consistent, and comprehensive data. Our research focuses on two areas—the “blue economy” as an organizing framework for deriving wealth from the oceans on a sustainable basis and the economics of climate change adaptation in coastal regions. 2. FINANCING THE BLUE ECONOMY: BLUE FINANCE In Asia and the Pacific, where the blue economy is a crucial development model for islands with few territorial lands, some integrated plans have already been proposed involving multiple sustainable industries, and private and public financing sources. With all of these plans, it is essential to recognize that proper ocean management brings social benefits that go far beyond marine ecosystems. Before investing in the blue economy, the social and political conditions should be identified to ensure equitable and sustainable guarantees on investment returns with insights from the natural and social sciences perspective. Empirical research on the social-ecological system focusing on resilience, vulnerability, and adaptability may support the evidence-based policy recommendations to help policy makers to tackle these issues (Young, Berkhout, and Gallopin et al. 2006). While struggling with the impacts of historical models of industrial and economic development, ocean warming, acidification, overfishing, and loss of biodiversity have become severe problems on a global scale. Social inequities are also significant and threaten to increase further, even as the global economy grows. However, the lessons learned have fostered technological innovations to increase human productivity to a previously unimaginable level but also brought severe problems, including labor abuses, environmental decay, and the first instances of mass deaths due to air pollution. Internationally, (neo)colonialism and inequity have intensified with the successive exhaustion of natural resources in one region after another. The concept of the blue economy has not yet achieved the full objective of implementation in developing regions; however, some development and research have shown the potential together with sustainable versions of existing activities such as fishing, tourism, and marine culture. Coexistence in the same region can develop in a socially equitable, ecologically sustainable, and economically viable way. In practice, greening the ocean industry is a way of sustaining the blue economy. Tourism in SIDSs is highly dependent on a healthy environment. Thus the external costs of marine-related industries require comprehensive planning. The growth in existing marine sectors will not only lead to more substantial rates of growth than in land-based industries, but those new marine industries and innovation could contribute to quality jobs and competitive advantage as “blue growth.” In financing the blue economy, “Blue Finance” is thus crucial as it supports and promotes the global transformation into blue growth. The boosting of the blue economy will also take sustainability into account. In other words, seeking economic growth as a result of ocean-related economic activities will not only comply with marine sustainable management measures required by laws but also support the marine conservation ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka 3 initiatives via appropriate financial arrangements toward sustainability. Sustainability can further be comprehended by three aspects of environmental, economic, and social sustainability (Kuhlman and Farrington 2010), the choice of project may not result in a conflict between environment and economic development, but rather, a better off the cycle with additional input that links the above three aspects with following objectives: 1) Environmental sustainability: A condition in which residents or the society could satisfy their needs without exhausting resources and hurting the ecosystem, including their biodiversity, to enable the environment to support future generations (Brundtland 1987). If the resources consumption cannot be continued indefinitely, environmental sustainability may not exist. Thus, regulating the use and preserving the capacity are essential for an ocean-positive economy (Spalding 2016). 2) Economic sustainability: A system that can continuously produce in an economic system that enables one to cope with external changes within its viable structural adaptation (Spangenberg 2005). Such a practice would allow long-term economic growth without negatively impacting the social, environmental, and cultural aspects of the community that may encompass financial costs and benefits. Economic sustainability should be created through regulatory instruments that can be linked to positionally balancing (Fath 2015). The advantage of the process should be able to sustain the project development continuously and independently while increasing resource extraction (Visbeck et al. 2014). 3) (3) Social sustainability: Equity of access to services such as health, education, development, etc., mostly at the local level, which could be distributed continuously for generations without depriving the current generation (McKenzie 2004). Despite the recognition that capacity should be actively built with the involvement of the community (Magis 2010), the quantification of social sustainability remains challenging to capture. Thus equitable access is often neglected until being required by community advocacy (Dempsey et al. 2011). Along with the development of tourism and a more complex ecosystem, the quantification and composition of their indicators show the importance of policy design (Anand and Sen 2000) or altering incentives from either economic or social norms to achieve positive outcomes (Lubchenco et al. 2016). The challenges of Blue Finance lie on how to help to coordinate these three types of sustainability by providing a transparent framework and incentives for all involved stakeholders. The international law and domestic legislation concerning ocean governance are thus capable of offering legal mandates to establish a financial mechanism aimed at implementing blue financial principles. In doing so, public donors and private investors, in particular, may be mobilized to increase sustainable financial resources provision in catalyzing blue economy objectives. ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka 4 3. EVOLUTION OF THE BLUE ECONOMY AND ITS STATUS QUO IN INTERNATIONAL LAW 3.1 From Economic Concept to Operational Principle In this part, the definition and distinction between the concept of the blue economy and the ocean economy by various international institutions and states will first be explored. The idea of a “blue economy” or “ocean economy” emerged from a need to integrate conservation and sustainability in the context of maritime management. The definitions of the “blue economy” and the “ocean economy,” however, vary at present (Smith- Godfrey 2016). Some institutions, such as the UN Conference on Trade and Development (UNCTD), use these two terms interchangeably. However, the blue economy focuses firmly on the sustainability of ocean resource use, while the ocean economy simply indicates the development and growth of ocean-related industries (OECD 2016; World Bank and UNDESA 2017). The term “blue economy” was initially suggested in The Blue Economy (Pauli 2010), circulated at the 2012 United Nations Conference on Sustainable Development held in Rio de Janeiro by actors who sought further investment in ocean conservation and development within the broader green economy agenda. At that time, however, the term “blue economy” was often used by a set of actors in ways that were inconsistent or incompatible (Silver et al. 2015). While the blue economy is broadly defined and used in a range of different contexts, a common understanding of its concept has not been achieved so far. Reaching international consensus on the concept of “blue economy” and what it means in practice is thus critical for the fate of Blue Finance with a view to widespread usage in the international society. Developing the blue economy from a simple economic concept to an international consensus-based guiding principle in the context of international law is a vital step toward achieving blue growth. In March 2018, the European Committee, in collaboration with the World Wild Foundation for Nature (WWF), the European Investment Bank, and the International Sustainable Unit, developed the “Sustainable Blue Economy Finance Principles” (European Commission 2018). The Principles are aimed at the promotion of SDG 14 (life below water) by providing 14 specific financing and investment principles for the financial community that aim to ensure ocean-related investment long-term gains without compromising the conservation and sustainable usage of ocean resources. It is the world’s first-ever voluntary initiative to address sustainable ocean financing issues. Nevertheless, no legal obligation has been imposed requiring private investors or financial institutions to take into account sustainability while engaging in ocean-related financing and investment activities. In other words, there is a lack of strong incentives for private investors to invest capital in achieving ocean sustainability. In practice, this article suggests that the legal mandate for establishing the financial mechanism in promoting the blue economy in the context of the binding international legal regime should be provided first. States could thoughtfully implement the concept of the blue finance, and its authorized definition in global society could be developed. In 2017, the UN Ocean Conference endorsed the concept of a blue economy to promote sustainable ocean-related economic activities such as fishery, tourism, aquaculture, ocean transportation, renewable energy, and marine biotechnology development. The authorized concept or definition of the blue economy, as previously mentioned, has yet to be incorporated in the international legal framework. The incorporation of the blue economy concept in the context of the marine constitutional framework convention, namely the UN Convention on the Law of the Sea (UNCLOS), is perhaps an ideal forum to reach international consensus on the official definition and what it means in practice. ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka 11 to ensure that profitable projects in their ocean will stimulate their economic development, which will also allow ocean-related developers to double their profits on returns from a Blue Bond and such ocean development projects. Furthermore, this serves as an incentive for private sectors because purchasing Blue Bonds would be good promotion and also contribute to their CSR (corporate social responsibility). As for potential issuers, this will motivate them to collaborate with neighboring countries and also provide them with environmental and financial sustainability. Consequently, the regulatory-driven Blue Bond mechanism creates a platform where all stakeholders are well motivated and committed to many forms of incentives. Figure 1: The Conceptual Framework of the Proposed Blue Finance Mechanism Source: illustrated by authors. 5. DISCUSSION Compared with green finance principles, the category identification for Blue Finance may be more difficulty due to a lack of conscience concerning ocean resources, regulation, and externalities. To fill the gap, SIDSs could collaborate with research institutes and private sectors with initiatives from a regional scope to propose tangible and bankable projects under evidence-based support for further advocacy of better finance access for ocean conservation and economic development. The Blue Finance mechanism suggested in the research could strengthen the connectivity between stakeholders with incentives to participate in the framework. The financial mechanism for the marine initiative to support developing countries in improving plastic waste management has the potential to adopt this innovative approach to issue certain Blue Bonds that encourage partnership between private investment, government, and MDBs’ aid. Practical application and implementation of the Blue Finance mechanism require some further steps. First, the implementation bodies of the Blue Finance mechanism should be identified. Briefly, the GEF is an ideal financial entity that serves as the financial mechanism facilitator to many multilateral environmental agreements (MEAs). In so doing, UNCLOS and MARPOL could provide an explicitly legal mandate for the GEF to ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka 12 establish blue economy funds (financial resources come from national governments and international organization aid budgets, NGO donations, and the GEF), which could be utilized in supporting larger-scale matters such as blue carbon or integrated coastal management. As the second step, the information dissemination to the general public is as indispensable as that to the investment market. The mechanism could facilitate the relationship between investment projects and ocean conservation activity inclusively with general public including NGOs to oversee the implementation. The initiation of the projects may attract more quantitative research to visualize the impact for informative references. The Blue Finance mechanism thereby creates its benchmark as an instrument for environmental investment as well as sustainable ocean development and governance. 6. CONCLUSION To end the tragedy of commons in the ocean, sustaining a healthy marine environment is an everlasting challenge for human society. We have proposed a regulatory-driven Blue Finance mechanism to serve as an effective framework aiming to promote sustainable ocean development and governance by highlighting the importance of converting the concept of a blue economy into an operational principle. The boosting of the sustainable blue economy requires sustainable financial resource support. It is insufficient to expect private investors to invest in Blue Bonds, mainly driven by the CSR or enhancement of public image. Instead, incentives should be given to promote public donations and private investments to capitalize on blue economic funds or Blue Bonds. Given the critically changing situation of the global ocean environment due to climate change, the international momentum toward stable financing in the blue economy is one of the urgent and vital tasks at international, regional, and national levels. We identified the key stakeholders and attempted to propose an innovative Blue Finance mechanism involving both public and private donors taking into consideration environmental, economic, and social sustainability. All these financial instruments could be adopted to achieve the policy objectives of marine conservation and sustainable ocean resource management. In sum, our proposed mechanism suggests that a regulatory approach should be adopted in both international and domestic law that incentivizes private investors to purchase Blue Bonds. This functions as a facilitator in investing financial resources in the blue economy. ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka 13 REFERENCES Alava, J. J. (2019). Ocean pollution and warming oceans: Toward ocean solutions and natural marine bioremediation. In Predicting Future Oceans (pp. 495–518). Elsevier. https://doi.org/10.1016/B978-0-12-817945-1.00046-0. Anand, S., and Sen, A. (2000). Human development and economic sustainability. World Development, 28(12), 2029-2049. https://doi.org/10.1016/S0305- 750X(00)00071-1. Asian Development Bank. (2019 May 2). ADB Launches $5 Billion Healthy Oceans Action Plan [Press release]. Retrieved from https://www.adb.org/news/adblaunches-5-billion-healthy-oceans-action-plan (accessed 20 February 2020). Asian-Pacific Economic Co-operation (APEC). (2019). Recommendations of the 20th Annual APEC Roundtable Meeting on the Involvement of the Business/Private Sector in the Sustainability of the Marine Environment. APEC. Basurto, X., S. Gelcich, S., E. and Ostrom, E. (2013). The social–ecological system framework as a knowledge classificatory system for benthic small-scale fisheries. Global Environmental Change, 23(6), 1366–1380. Blue Carbon Initiative. (2019, April 26). Kaimana Coastal Conservation and Community Development – Indonesia. Retrieved from https://www.thebluecarboninitiative .org/blue-carbon-activities/2019/4/26/kaimana-coastal-conservation-and- community-development-indonesia (accessed 1 April 2020). Brundtland, G. H. (1987). Our Common Future (Report for the World Commission on Environment and Development, United Nations). United Nations. Climate Bonds Initiative. (2019). Green Bonds: The State of the Market 2018. Retrieved from https://www.climatebonds.net/files/reports/cbi_gbm_final _032019_web.pdf (accessed 1 April 2020). Dempsey, N., Bramley, G., Power, S., and Brown, C. (2011). The social dimension of sustainable development: Defining urban social sustainability. Sustainable Development, 19(5)5, 289-300. https://doi.org/10.1002/sd.417. European Commission. (2018). Introducing the Sustainable Blue Economic Financing Principles. Retrieved from https://ec.europa.eu/maritimeaffairs/sites/ maritimeaffairs/files/introducing-sustainable-blue-economy-finance- principles_en.pdf (accessed 20 January 2020). European Commission. (2019). The EU Blue Economy Report 2019. Luxembourg: Publications Office of the European Union. Retrieved from https://op.europa.eu/ en/publication-detail/-/publication/676bbd4a-7dd9-11e9-9f05-01aa75ed71a1/ language-en/ (accessed 10 January 2020). Fath, B. D. (2015). Quantifying economic and ecological sustainability. Ocean and Coastal Management, 108, 13–19. https://doi.org/10.1016/ j.ocecoaman.2014.06.020. Gaines, S., Cabral, R., Free, C., Golbuu, Y., Arnason, R., Battista, W., Bradley, D., Cheung, W., Fabricius, K., Hoegh-Guldberg, H., Juinio-Meñez, M. A., Molinos, J. G., Ojea, E., O’Reilly, E., and Turley, C. (2019). The Expected Impacts of Climate Change on the Ocean Economy. Washington, DC: World Resources Institute. Retrieved from https://www.oceanpanel.org/sites/default/files/2019- 12/expected-impacts-climate-change-on-the-ocean-economy.pdf. ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka 14 Kuhlman, T., and Farrington, J. (2010). What is sustainability? Sustainability, 2(11), 3436-3448. https://doi.org/10.3390/su2113436. Lubchenco, J., Cerny-Chipman, E. B., Reimer, J. N., and Levin, S. A. (2016). The right incentives enable ocean sustainability successes and provide hope for the future. Proceedings of the National Academy of Sciences of the United States of America, 113(51), 14507–14514. https://doi.org/10.1073/pnas.1604982113. Nordic Investment Bank. (2019, January 25). Nordic Investment Bank (NIB) launches an Inaugural 5-year Year SEK 2 Billion Nordic–Baltic Blue Bond. [Press release]. Retrieved from https://www.nib.int/who_we_are/news_and_media/news _press_releases/3170/nib_issues_first_nordic-baltic_blue_bond (accessed 20 February 2020). Magis, K. (2010). Community resilience: An indicator of social sustainability. Society and Natural Resources, 23 (5), 401–416. https://doi.org/10.1080/ 08941920903305674. McKenzie, S. (2004). Social sustainability: Towards some definitions, Hawke Research Institute Working Paper Series No 27. South Australia: University of South Australia. OECD. (2016). The Ocean Economy in 2030. Paris: OECD Publishing. Retrieved from https://www.oecd.org/sti/ind/Session%201_b%20-%20Claire%20Jolly%20-%20 Web.pdf (accessed 10 January 2020) Ocean Policy Research Institute (2019). White Paper on the Ocean and Ocean Policy in Japan. Tokyo: The Ocean Policy Research Institute, The Sasakawa Peace Foundation, in press. Ostrom, E. (2010). Polycentric systems for coping with collective action and global environmental change. Global Environmental Change, 20(4), 550–557. Pascal, N., Brathwaite, A., Philip, M., and Walsh, M. (2017). Impact investment in marine conservation. Duke Environmental Law and Policy Forum, 28, 2(1), 199–219. Pauli, G. A. (2010). The Blue Economy: 10 Years, 100 Innovations, 100 Million Jobs. New Mexico: Paradigm Publications. Pörtner, H. O., Roberts, D., Masson-Delmotte, V., Zhai, P., Tignor, M., Poloczanska, E., Mintenbeck, K., Nicolai, M., Okem A., and Petzold, J. (2019). IPCC Special Report on the Ocean and Cryosphere in a Changing Climate. Geneva: IPCC Intergovernmental Panel on Climate Change. Roadmap to Oceans and Climate Action (ROCA). (2019). Assessing Progress on Ocean and Climate Action: The Roadmap to Oceans and Climate Action (ROCA) Initiative. Retrieved from https://rocainitiative.files.wordpress.com/ 2019/12/roca-2019-progress-report-1.pdf (accessed 20 February 2020). Silver, J. J., Gray, N. J., Campbell, L. M., Fairbanks, L. W., and Gruby, R. L. (2015). Blue economy and competing discourses in international oceans governance. The Journal of Environment and Development, 24(2), 135–160. https://doi.org/10.1177/1070496515580797. Smith-Godfrey, S. (2016). Defining the blue economy. Maritime Affairs: Journal of the National Maritime Foundation of India, 12(1), 58–64. https://doi.org/10.1080/ 09733159.2016.1175131. ADBI Working Paper 1157 Yoshioka, Wu, Huang, and Tanaka 15 Spalding, M. J. (2016). The new blue economy: the future of sustainability. Journal of Ocean and Coastal Economics, 2(2), 8. https://doi.org/10.15351/2373- 8456.1052. Spangenberg, J. H. (2005). Economic sustainability of the economy: Concepts and indicators. International Journal of Sustainable Development, 8, 47–64. https://doi.org/10.1504/ijsd.2005.007374. Visbeck, M., Kronfeld-Goharani, U., Neumann, B., Rickels, W., Schmidt, J., van Doorn, E., Matz-Lück, N., Ott, K., and Quaas, M. (2014). Securing blue wealth: The need for a special sustainable development goal for the ocean and coasts. Marine Policy, 48, 184–191. World Bank and United Nations Department of Economic and Social Affairs (UNDESA). (2017). The Potential of the Blue Economy: Increasing Long-term Benefits of the Sustainable Use of Marine Resources for Small Island Developing States and Coastal Least Developed Countries. Washington, DC: World Bank. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/ 26843/115545.pdf?sequence=1&isAllowed=y (accessed 4 January 2020). World Bank. (2018, October 29). Seychelles Launches World’s First Sovereign Blue Bond. [Press release]. Retrieved from https://www.worldbank.org/en/news/ press-release/2018/10/29/seychelles-launches-worlds-first-sovereign-blue-bond (accessed 20 February 2020). ———. (2019a). PROBLUE 2019 Annual Report. Washington, DC: World Bank. Retrieved from http://documents.worldbank.org/curated/en/559541570047 740595/PROBLUE-2019-Annual-Report (accessed 20 February 2020). ———. (2019b, April 3). World Bank Launched Bonds to Highlight the Challenge of Plastic Waste in Oceans. [Press release]. Retrieved from https://www.worldbank.org/en/news/press-release/2019/04/03/world-bank- launches-bonds-to-highlight-the-challenge-of-plastic-waste-in-oceans (accessed 20 February 2020). Young, O, Berkhout, F., Gallopin, G., Janssen, M., Ostrom, E., and Leeuw, S. (2006). The globalization of socio-ecological systems: An agenda for scientific research. Global Environmental Change, 16(3), 304-316. https://doi.org/10.1016/ j.gloenvcha.2006.03.004.