· 6 min read
Our oceans are drowning in plastic: millions of tons flow annually into our waters from rivers worldwide and plastic production is forecast to double by 2050. But this isn't just an environmental crisis with significant health and economic impacts; it's a debt accumulating on our planet, a negative balance in the global ecological account. The Ocean Cleanup — a nonprofit organization confronting this crisis head-on with a mission to remove plastic from rivers and oceans worldwide — recognizes that technological innovation alone isn't enough; urgently unlocking new currencies and a new wave of financial liquidity is also paramount
One promising avenue for securing the necessary resources is blue finance — an emerging category of financial instruments and strategies designed to support ocean conservation, sustainable marine resource management, and environmental restoration. By leveraging the collaborative currencies this can provide, The Ocean Cleanup aims to amplify its impact and accelerate its mission, creating a pathway for other organizations to follow. In fact, just as the organization pioneered some of the most important and cutting edge technological solutions to tackle plastic marine debris, The Ocean Cleanup is now turning its focus to pioneering some bold and innovative financing mechanisms.
Blue finance: unlocking new currencies for ocean health
Blue finance is a broad term that encompasses a new class of financial instruments and strategies designed to channel capital into ocean conservation, sustainable marine resource management, and address plastic pollution. Comprised of instruments and strategies such as blue bonds, plastic credits, impact investment, blended finance, and public-private partnerships, blue finance creates collaborative new currencies that enhance the flow of liquidity specifically dedicated to safeguarding our oceans.
As the world increasingly turns to market-based solutions to fund environmental sustainability, blue finance provides an opportunity to generate capital while driving tangible ecological benefits. For The Ocean Cleanup, it's a critical funding opportunity to scale operations, deploy more technology, and increase overall impact.
Innovative blue finance mechanisms: generating the necessary liquidity for our oceans
Blue bonds: harnessing debt for cleanup
One of the most promising tools to increase liquidity for scaling The Ocean Cleanup’s efforts is the issuance of blue bonds. Like green bonds, which fund environmentally sustainable projects, blue bonds raise capital specifically for ocean conservation initiatives. These are debt instruments, through which investors provide funds with the expectation that the money will be used for preserving marine ecosystems and tackling plastic waste. Blue bonds present an avenue for long-term investment in cleanup efforts, providing investors with financial returns over time while supporting environmental impact.
For The Ocean Cleanup, blue bonds can help generate the capital needed to expand its Interceptor fleet to stop the flow of ocean bound plastic from rivers, deploy more cleanup systems, and enhance technology efficiency. More importantly, blue bonds are typically tied to performance outcomes, thereby linking returns to achieving specific goals like removing a certain volume of plastic. By creating a strong alignment between investors and environmental goals, these blue impact bonds act as a performance-based financial currency for environmental results.
Plastic credits: a market currency for removal
Another innovative mechanism is plastic credits, which create a market for removing plastic waste. Like carbon credits, companies or governments can now purchase plastic credits to offset their plastic footprint. Each credit represents the removal of a specific amount of plastic from the ocean or rivers. For example, a company producing plastic could purchase verified credits to offset its waste, with the funds directly supporting The Ocean Cleanup's efforts. This creates a direct financial incentive for businesses to invest in cleanup, and would provide The Ocean Cleanup with a sustainable revenue stream.
Plastic credits are a relatively nascent instrument, but — as the market matures and costs of verification decrease — they can broaden the market for ocean plastic removal, attracting private sector actors seeking to contribute to environmental sustainability. This shifts responsibility and encourages accountability, effectively creating a monetary value for plastic removal and helping the organization achieve its urgent mission.
Blended finance: blending public and private currencies
Blended finance is an approach that combines different sources of "currency.” It mixes concessional funding from governments, development banks, and philanthropic organizations with private sector capital. The concessional funds act like a risk mitigation currency, making investment more attractive for private investors in ocean cleanup efforts. Blended finance could support The Ocean Cleanup’s large-scale operations, particularly in highly polluted, higher-risk regions. Blended finance can also support innovative solutions beyond cleanup, such as waste-to-energy or improved waste management systems, creating a holistic flow of capital for tackling plastic.
Public-private partnerships: leveraging collaborative currencies
Public-private partnerships (PPPs) are a crucial component of blue finance, enabling collaboration between governments, private companies, and non-profits. Governments can provide the regulatory frameworks and incentives, while private sector partners contribute capital, expertise, and technology.
The Ocean Cleanup has already established several partnerships with governments and private companies around the world, and further expanding these collaborations can unlock additional resources and expertise. For instance, local governments could work with The Ocean Cleanup to deploy Interceptors in highly-polluted rivers, while private companies could support the deployment with financial backing or logistics expertise — effectively pooling different forms of "currency" to achieve a common goal.
Impact investors and esg capital: capital flowing for value beyond profit
The rise of impact investing and the importance of Environmental, Social, and Governance (ESG) factors represent another promising source of funding. Investors focused on generating positive environmental and social impacts are increasingly looking for opportunities like ocean conservation, and The Ocean Cleanup is well-positioned to attract this capital flow. By aligning with global ESG goals, The Ocean Cleanup can access a broader pool of funding from investors who value both financial returns and measurable environmental outcomes — essentially a "currency" of investment that prioritizes both profit and purpose.
Conclusion: scaling liquidity to turn the tide on ocean plastic
The immense scale of ocean plastic pollution demands a bold, multi-faceted approach that fundamentally requires new ways to generate and channel financial liquidity. Blue finance offers The Ocean Cleanup a unique opportunity to unlock the necessary capital to scale its mission and accelerate progress towards a plastic-free ocean.
By strategically utilizing mechanisms like blue bonds, plastic credits, blended finance, and public-private partnerships, The Ocean Cleanup can tap into diverse funding streams, creating a more sustainable, financially viable model for addressing this urgent environmental challenge. As the global focus on sustainability grows, the financial instruments powering ocean cleanup will continue to evolve, increasing the potential to significantly increase our impact.
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