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Academic Journal of Business & Management, 2024, 6(4); doi: 10.25236/AJBM.2024.060422.

Blue Carbon Bonds: The Role and Potential of an Emerging Financial Instrument in Mitigating Climate Change


Yun Qian

Corresponding Author:
Yun Qian

University of Sanya, Sanya, China


Blue carbon bonds represent an innovative financial instrument designed to catalyze investments in the conservation, restoration, and sustainable use of marine and coastal ecosystems, which are critical for carbon sequestration and biodiversity. This paper examines the role and potential of blue carbon bonds in mitigating climate change, highlighting their alignment with the Sustainable Blue Economy (SBE) and their distinction from traditional green bonds. Despite the nascent nature of the blue carbon market, its growth potential is significant, driven by global commitments to Sustainable Development Goals and the Paris Agreement. The paper identifies key challenges to the scalability of blue carbon bonds, including financing risks, market fragmentation, and the need for standardized methodologies. Strategies to overcome these barriers are proposed, such as policy and regulatory improvements, financial innovation, and enhanced transparency. The paper concludes that with concerted efforts across sectors and disciplines, blue carbon bonds can become a powerful tool for climate change mitigation, leveraging the oceans' potential as a natural ally in the global sustainability agenda. The transition to a sustainable blue economy and the integration of blue carbon bonds into mainstream finance are essential for preserving marine ecosystems and addressing the pressing environmental challenges of our time.


Blue Bonds, Sustainable Blue Economy, Marine Ecosystem Conservation

Cite This Paper

Yun Qian. Blue Carbon Bonds: The Role and Potential of an Emerging Financial Instrument in Mitigating Climate Change. Academic Journal of Business & Management (2024) Vol. 6, Issue 4: 137-143. https://doi.org/10.25236/AJBM.2024.060422.


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