Blue finance: Challenges, opportunities, and holistic policy framework

Marine and coastal ecosystems face increased risks from anthropogenic activities, climate anomalies, and instability in economic and social conditions, all of which are significant for coastal communities. Risk mitigation efforts can be carried out through the application of blue finance mechanisms. This research aims to develop guidelines for stakeholders to develop holistic policies that protect the health of marine and coastal ecosystems while promoting sustainable economic growth from a blue finance perspective. The analytical tool used in this research is a systematic literature review. The database used in this research is sourced from Scopus. The results of this study show that the blue finance instruments implemented consist of blue bonds, debt-for-nature swaps, and blue carbon credits. The main obstacles to the implementation of blue finance mechanisms are institutional capacity, an inefficient governance structure, transparency issues, the bluewashing phenomenon, climate change anomalies, and uncertainty. The steps in developing a blue finance policy framework include building consensus, conducting comprehensive assessments, developing policies and regulations, increasing capacity and innovation, encouraging collaborative governance, and monitoring and evaluation.