Blue Bonds (For Coastal/Marine Resilience)
The Gulf of Guinea region holds immense potential to harness Blue Bonds as a financing vehicle for coastal and marine resilience. By repurposing sovereign or municipal debt into instruments dedicated to the protection of coastal ecosystems, Blue Bonds can unlock long-term capital for projects such as shoreline defences, marine protected areas, and fisheries co-management. GoG-RRI envisions playing a catalytic role in structuring and coordinating a multi-country Gulf of Guinea Blue Bond Facility, ensuring that proceeds are transparently tied to measurable outcomes in ecosystem restoration, livelihoods, and coastal protection. This approach will not only channel investment into urgent adaptation priorities but also position the Gulf of Guinea as a global leader in innovative Blue Economy financing.
Examples: Climate-related disasters are increasing in frequency and intensity. According to the World Meteorological Organization, more than 11,000 disasters over the last 50 years have been attributed to weather-, climate- and water-related hazards. This has led to 2 million deaths and USD 3.6 trillion in economic losses.
Coastlines are where many hazards cause the greatest havoc. In 2004, the Indian Ocean tsunami killed at least 228,000 people and caused estimated losses of USD 15 billion. On a much more regular basis, cyclones and hurricanes kill and destroy as they reach land with maximum speed. In many places, the combination of land subsidence, poor water management, degradation of ecosystems and sea-level rise combine to increase vulnerability to extreme weather events and greater exposure to stressors.
The most climate-vulnerable communities — those who do not have access to resources to adapt to climate change — are disproportionally affected. In 2018 alone, approximately 108 million people required help from international humanitarian organizations because of storms, floods, droughts and wildfires.
Under current climate projections and a business-as-usual scenario, the number of people affected by these climate disasters could increase by 50% by 2030, requiring approximately USD 20 billion a year in humanitarian aid.
- What it is: Bonds or debt conversions that dedicate savings/proceeds to marine/coastal protection and climate adaptation.
- Why it fits: Coastal states can ring-fence funding for shoreline protection, fisheries co-management, and MPA-linked livelihoods.
- Proof of concept: Seychelles’ sovereign blue bond ($15m; World Bank guarantees/GEF support). Gabon’s ~$500m debt-for-nature/“blue bond” conversion unlocking >$120–160m for marine conservation with DFC political-risk insurance and TNC support. World Bank+1Bank of AmericaThe Nature Conservancydfc.govFinancial TimesAP News
- GoG-RRI angle: Convene finance ministries, marine authorities, and DFIs to scope a multi-country Gulf of Guinea Blue Facility that can structure sub-sovereign issuances (e.g., for coastal regions/port cities) with partial guarantees and performance covenants.
