Sustainable blue economy and international cooperation in island countries and regions: a focus on financing

Island jurisdictions were leading voices in presenting and advocating the concept of a 'blue economy' to the international community which was realized and emerged from the Rio+20 Conference in 2012, including the later establishment of a specific sustainable development goal for the marine environment with the 2015 Sustainable Development Goals (SDGs). The blue economy, while suffering from varying definitions and interpretations, centres on the marine environment which is also at the core of island societies and economies. It also complements the 'green economy' paradigm, which focuses on a continental viewpoint of a terrestrial economy, with both being grounded in the three entwined pillars of sustainable development: the environment, economy, and society. This chapter investigates the financing aspect of operationalizing the blue economy in island states. These new development pathways in islands face many roadblocks which we need to consider. This chapter examines recent financing efforts in both the global and regional arenas which are attempting to chart a course towards international cooperation in operationalizing the blue economy. A systematized review of grey literature, media coverage, and policy statements pertaining to island states, the international community, and blue economy funding mechanisms and programs is employed, alongside yearly real GDP growth from the International Monetary Fund for the period 2018–2023 to understand the fiscal impacts of the coronavirus on island states. This chapter finds that in this new endemic COVID-19 reality, the global momentum garnered by the blue economy paradigm prior to the onset of the pandemic is threatened by the challenging global economic conditions and emerging issues of international disharmony. In operationalizing the blue economy securing climate finance, specifically 'blue finance,' for these marine-based climate actions is key. There has been numerous policy actions and interventions undertaken to structure and enable the injection of blue economy capital. However, there remains a large gap in implementing actions and dispersing much-needed capital to island jurisdictions.