A Blue Bond is a special-purpose bond issued to raise funds needed for marine conservation, water resource protection, marine industry projects, and support for sustainable fisheries. It is a type of ESG bond and is referred to as a ‘blue bond’ in Korean. The difference from Green Bonds (which raise funds needed for projects related to terrestrial environmental conservation) is that Blue Bonds are for funding the sustainability of marine ecosystems and the marine economy.
Bonds issued as Blue Bonds are invested in projects with clear environmental conservation and improvement effects. Examples of such projects include marine ecosystem restoration, research and development costs for marine pollution prevention projects, and technological development to address the marine plastics problem. Concrete investment areas in the marine environment include the restoration of coral reefs and mangroves (shrubs that grow in the muddy soil of tropical or subtropical coasts or estuaries where seawater flows in), sustainable port development, development of marine plastic reduction technologies, and the construction of eco-friendly shipping infrastructure.
[Blue Bond Ⓟ ESG.ONL/ESG Today]
The International Capital Market Association (ICMA, a Zurich, Switzerland-based non-profit organization representing global bond and capital market participants) has published Blue Bond guidelines, clearly presenting credible issuance standards and criteria for evaluating the environmental impact of projects. Accordingly, Blue Bonds are establishing themselves as ESG bonds trusted in international financial markets.
While the market is still in its early stages with relatively few issuances, as global interest in the marine environment grows, the scale of Blue Bond issuances and the attention they draw are also expected to increase. Various countries and international organizations, including the Republic of Seychelles in the Indian Ocean, China, and Indonesia, are undertaking Blue Bond issuances.
Domestically, the Korea Ocean Business Corporation issued USD 300 million in global bonds in the form of Blue Bonds in April 2025. The funds secured through the bond issuance are to be used for investments in vessels utilizing low-carbon fuels such as ammonia and methanol, ports related to low-carbon fuel supply, and offshore wind power installation vessels.
Blue Bonds are being evaluated as a new instrument that will lead marine environmental conservation and a sustainable marine economy. Amid the spread of ESG management across industries, Blue Bonds are expected to play a key role in eco-friendly investment toward the marine sector and in enhancing the sustainability of the marine industry.
by Editor O