During the 2023 World Ocean Week in Xiamen, the International Institute of Green Finance at the Central University of Finance and Economics (CUFE) and the SEE Foundation collaboratively released the report titled “Blue Finance in China: Progress and Challenge”.
The ocean is currently confronted with unprecedented challenges, making it imperative to ensure the sustainable development of economic activities related to marine conservation. Finance plays a crucial role in driving this progress, and “blue finance” has emerged in response to the need for financial sector support in implementing sustainable development measures. In the context of this report, blue finance refers to financial services that contribute to marine environmental protection and the sustainable growth of marine-related industries by facilitating resource allocation, risk management, and market pricing. The report offers insights into the policy landscape and market practices of blue finance in China, with a specific focus on four instruments: equity and debt financing tools, insurance, and the realization of ecological products. Drawing from this overview, the report analyzes the challenges and prospects associated with the development of blue finance in China.
The progress of Blue Finance in China is still at an early stage, marked by numerous challenges. Notable among these challenges are the incomplete state of policies and laws associated with blue finance, a lack of sophistication in technology, scientific methodologies, and data availability and accessibility related to “blue” economic activities, as well as ocean conservation and restoration. Additionally, there is a shortage of blue finance products and innovations, and financial institutions lack the expertise to offer blue finance products and professional services.
To address these challenges, the report proposes a four-point outlook. This includes enhancing laws and industrial standards, establishing a comprehensive blue financial policy system, improving data accessibility and availability along with advancing relevant technologies, fostering innovations in blue financial products, and strengthening the capabilities of financial institutions.