Why the Ocean Can’t Wait
The ocean is a critical source of food, income, and climate resilience, supporting over 3 billion people and hosting most of the planet’s biodiversity. It plays a vital role in decarbonisation by absorbing about 30% of global carbon dioxide emissions and generating approximately 50% of the world’s oxygen[1]. In Asia, it is an economic lifeline — fueling fisheries, trade, and tourism. Yet climate change threatens to slash tropical fish catch by 40%, imperiling the livelihoods of over a billion people[2].
Globally, the ocean economy is booming as the trade in ocean-related goods hit USD 2.2 trillion in 2023 – led by Asian powerhouses like China, India, and Malaysia[3] —this economic potential is underpinned by fragile ecosystems now under threat.
Unlocking sustainable growth from ocean resources will require large-scale investments in marine infrastructure, science & technology, conservation, climate adaptation, and inclusive community-based development. At the High-Level Regional Consultation in December 2024, leaders pointed to a staggering USD 4 trillion annual financing gap, with Asia bearing the brunt[4]. The region faces sharp disparities: Southeast Asia struggles with overfishing, and plastic pollution; the South China Sea’s territorial disputes complicate resource management; and smaller island nations are highly vulnerable to climate change impacts.[5]
Why Traditional Finance Falls Short
Traditional funding mechanisms remain fragmented, risk-averse, and insufficient to meet the scale of investment needed for ocean sustainability. They are often constrained by short project cycles, limited risk appetite, and a lack of tailored instruments for marine ecosystems. Mobilising innovative financial instruments such as blue bonds, debt-for-nature swaps, and blended finance offers a scalable way to de-risk investment and generate measurable impact. However ocean-focused philanthropy still represents only a fraction of what is required. By layering philanthropic capital with concessional and commercial funding, these models de-risk investments and link returns to measurable environmental outcomes across Asia’s blue economy.
Catalysing Regenerative Ocean Economies: The Minderoo Foundation is scaling regenerative ocean businesses across Oceania, in ecotourism and community-based aquaculture, with over USD 210 million committed.[6] It’s Blue Bond Incubator (BBI)— being developed in collaboration with the Ocean Risk and Resilience Action Alliance (ORRAA) and Callund Consulting is a private, not-for-profit platform to support governments, private issuers, and investors in catalysing long-term capital flows into the blue economy. With a goal of unlocking up to USD 70 billion in blue bond issuance by 2030, it aims to test scalable, blended finance models that deliver both ecological impact and investable outcomes.[7]
De-Risking Ocean Innovation: The ReOcean Fund, launched by the Prince Albert II of Monaco Foundation in partnership with Monaco Asset Management (MAM)[8], has secured funding of at least €50 million[9]. It uses a layered capital approach to de-risk early-stage investments in marine pollution reduction, sustainable aquaculture, and ocean intelligence. Though headquartered in Europe, it is actively exploring Asia-focused opportunities—particularly in scalable plastic waste management and aquaculture.[10] With a robust impact framework that ties financial returns to ecological results through initiatives such as the Blue Economy Index[11], the ReOcean Fund offers a compelling blueprint.[12] By targeting Series A-stage companies, supported by technical and scientific expertise, the fund is positioned to accelerate breakthrough ocean solutions, mobilise private capital, and strengthen the broader ecosystem for ocean and planetary health.[13]
Scaling Ocean Plastics Solutions: Circulate Capital’s Ocean Fund I-B (CCOF I-B), a private equity fund addressing plastic pollution across South and Southeast Asia, has raised USD 76 million to date.[14] The fund uses a blended finance structure involving concessional equity, with contributions including USD 10 million from IFC, of which USD 5 million is concessional capital from the Finland-IFC Blended Finance for Climate Change Programme, and USD 5.6 million from Proparco[15]. AVPN’s member, ECCA family foundation has been a key supporter by contributing philanthropic capital to help unlock private sector investment for scaling ocean plastics solutions across South and Southeast Asia.
This first-loss capital helps de-risk investments and catalyze additional commercial funding, enabling the fund to support high-impact SMEs in recycling, waste management, and climate tech across countries like India, Indonesia, and Vietnam.To date, it has reduced about 270,000 tonnes of plastic wastage, managed 1.7 million tonnes of waste, and reduced 400,000 tonnes of GHG emissions—proving the model’s environmental and financial viability.
The Case for Scaling Blended Finance
Together, these examples reflect a growing pipeline of investable deals that demonstrate how blended finance can translate environmental goals into market-ready opportunities. Investors are increasingly drawn to projects that offer risk mitigation, scalable models, and clear exit pathways— whether through revenue generation, public procurement, or follow-on capital.
What sets successful blue economy investments in Asia is not just innovation in structuring finance but also discipline in execution: rigorous impact measurement, verifiable ecological results, and deep-rooted local partnerships. Family offices and foundations are increasingly instrumental in advancing blended finance for the blue economy—working across the continuum of capital by commissioning feasibility studies, funding early-stage innovation, and contributing catalytic capital to de-risk investment opportunities.
With stronger blended finance mechanisms already catalysing measurable results, like reducing 400,000 tonnes of CO₂e emissions[16] or protecting 30% of Seychelles’ marine zone[17]—the path forward is clear. Scaling these models is key to unlocking resilient coastal economies, regenerating marine ecosystems, and creating sustainable livelihoods that future-proof Asia’s blue economy
AVPN: Catalysing the Blue Shift
Despite their ocean dependence, many coastal economies—especially Small Island Developing States (SIDS)—struggle to access finance. Fragmented policy frameworks, limited visibility into pipelines, and a lack of scalable financing mechanisms like blue carbon markets continue to hinder progress.
AVPN recognises the urgent need to foster cross-sector collaboration to accelerate ocean-based solutions. Strengthening the social investor ecosystem by connecting capital providers with blue economy actors and surfacing investable opportunities will be essential to scaling marine conservation and sustainable resource management across Asia.
To support this vision, AVPN advocates for the following actions:
What’s Next: Join the Movement
AVPN is advancing a regional initiative to mobilise sustainable financing for Asia’s blue economy. By channeling capital toward high-impact solutions— such as sustainable fisheries, ecosystem restoration, ocean plastics, and circular economy—we aim to build a more resilient and investable ocean economy.
As we continue shaping the regional agenda, including engagements at the upcoming UN Ocean Conference, we invite funders, investors, and ecosystem enablers to collaborate with us. These convenings will serve as platforms to co-create financing strategies, uncover early-stage pipelines, and unlock catalytic partnerships.
Reach out to [email protected] and be part of the movement to build Asia’s sustainable blue future.
[1] https://www.un.org/en/climatechange/science/climate-issues/ocean
[2] https://www.uow.edu.au/media/2020/tropical-fisheries-projected-to-decline-40-per-cent-by-2050s-.php?utm_source=chatgpt.com
[3] https://unctad.org/news/fast-growing-trillion-dollar-ocean-economy-goes-beyond-fishing-and-shipping
[4] https://www3.weforum.org/docs/WEF_Tracking_Investment_in_and_Progress_Toward_SDG14.pdf
[5] https://www.gtansw.org.au/wp-content/uploads/2021/09/Oceans-surrounding-Asian-countries-at-crisis-point.pdf
[6] https://www.minderoo.org/our-purpose/
[7] https://oceanriskalliance.org/wp-content/uploads/2024_AUG-SCIFF-Overview-w-summaries-1.pdf
[8] https://www.reoceanfund.com/en/news/press-release/the-prince-albert-ii-of-monaco-foundation-and-monaco-asset-management-officially-announce-the-first-investment-of-the-reocean-fund-056
[9] https://www.reoceanfund.com/en/about-18
[10] https://www.fpa2.org/en/initiatives/beyond-plastic-med-bemed-001
[11] https://www.fpa2.org/en/news/launch-of-the-blue-economy-index-08453
[12] https://www.reoceanfund.com/en/impact-37
[13] https://www.reoceanfund.com/en/about-18
[14] https://www.circulatecapital.com/circulate-capital-announces-final-close-of-73-million-climate-tech-fund-bringing-total-assets-under-management-to-255-million/
[15] https://www.circulatecapital.com/circulate-capital-achieves-third-close-for-circulate-capital-ocean-fund-i-b-led-by-the-international-finance-corporation-ifc-and-proparco/
[16] https://www.circulatecapital.com/wp-content/uploads/2024/06/Circulate-Capital-2023-Annual-Progress-Report.pdf
[17] https://www.ideassonline.org/public/pdf/Seychelles-ENG.pdf
