ADVOCACY: Aligning investments with ocean health
If the ocean suffers, so too does people’s health and prosperity. However, the #BackBlue Ocean Finance Commitment can build the social and economic resilience of communities adapting to climate change
Climate risk and ocean risk together equal financial risk. Risk threatens sustainable economic growth and makes and keeps people poor. Climate risk destabilises efforts to build resilience, entrenching communities in poverty.
It is crucial that we drive investment into coastal and marine natural capital to mitigate risk and build resilience in communities adapting to climate change. A step-change in scale is required with a new financial settlement to support adaptation and resilience. It must recognise the challenges faced by small island developing states and coastal least developed countries, and not only involve public and multilateral institutions, but also the private sector, and in particular, the major capital markets and the insurance sector.
That is why the Ocean Risk and Resilience Action Alliance (ORRAA) has developed the #BackBlue Ocean Finance Commitment. It includes:
Setting robust net zero commitments by joining a race to zero financial initiative, such as the Net Zero Asset Owner Alliance, Net Zero Asset Manager Initiative, Net Zero Banking Alliance or Net Zero Insurance Alliance, and by adopting science-based targets to reach net zero no later than 2050 in line with the criteria of the UN’s Race to Zero campaign. This includes aligning investments with the Net Zero Asset Owner Alliance target setting protocol.
Driving financial system policy change by adopting corporate ESG standards and disclosures that align with the recommendations of the Task Force on Climate-related Financial Disclosures and adopting taxonomies on sustainable economic activities that define common
and clear criteria for classifying projects
and investments as sustainable.
Investing in nature-positive outcomes for the ocean based on the Sustainable Blue Economy Finance Principles, which drive investment into coastal and marine nature that halt biodiversity loss and sustain and build the benefits that these ecosystems provide, while preserving and improving livelihoods.
Accelerating the transition towards a healthy and sustainable ocean through lending, investment and insurance practices that mitigate ocean risk and build the resilience of climate-vulnerable coastal communities, supporting work to raise at least an initial $500 million of investment into coastal nature by 2030, to create scalable and investable finance and insurance projects and products.
Joining ORRAA so that together we can meet the challenges posed by ocean risk by pioneering new and innovative finance products that focus on driving investment into ocean and coastal natural capital, reducing risk and building a sustainable, resilient ocean, regenerating its biodiversity.
If your company is interested in signing the #BackBlue Ocean Finance Commitment please contact info@oceanriskalliance.org or visit www.oceanriskalliance.org for more information.
