June 2026 – Water is one of the most critical pillars of life and livelihoods, yet it remains severely underfinanced. From oceans and rivers to sanitation systems, the infrastructure that supports growth, jobs, and human wellbeing is under increasing strain. To address this challenge, the Water Forward coalition has set an ambitious target: improving water security for over a billion people by 2030.
At the heart of this effort lies blue finance, an innovative approach that channels investment into projects designed to keep water resources healthy and resilient. Using instruments such as blue bonds, blue loans, and sustainability-linked investments, blue finance supports initiatives ranging from marine conservation and sustainable aquaculture to water security, sanitation, and eco-friendly coastal tourism.
The blue economy is already booming. The OECD projects its value will grow from $2.6 trillion in 2020 to $5.1 trillion by 2050. But this growth must be sustainable. Blue finance ensures that economic expansion goes hand in hand with protecting oceans and waterways, tackling challenges like plastic pollution, overfishing, and water scarcity while creating opportunities for communities and businesses.
Since 2020, the International Finance Corporation (IFC) has provided over $2.1 billion in blue finance through loans and bonds. These investments have supported plastics recycling, marine conservation, and water efficiency projects. In the Philippines, IFC’s investment in BDO Unibank’s first blue bond is strengthening the coastal blue economy, while in São Paulo, a $150 million loan to SABESP is expanding sewage treatment in underserved neighborhoods and reducing river pollution. The Seychelles pioneered the world’s first sovereign blue bond in 2018, raising $15 million for marine conservation, and more recently, Ørsted became the first energy company to issue a blue bond, signaling the sector’s commitment to sustainable water management.
To scale these efforts, IFC has updated its Guidelines for Blue Finance, part of the Water Forward toolkit. The guidelines expand eligible sectors, introduce measurable impact indicators, and align with global standards such as the Green Bond and Green Loan Principles. They provide clarity for investors, ensuring transparency and credibility while helping projects attract greater funding.
Blue finance is more than a financial innovation — it is a lifeline for ecosystems and communities. By mobilizing private capital and fostering collaboration between governments, development banks, and the private sector, it creates markets that support resilience, jobs, and sustainable growth.
Through Water Forward, the World Bank Group and its partners are working to turn momentum into lasting systems change. With blue finance as a cornerstone, the vision is clear: a future where oceans and waterways thrive, delivering clean water, sustainable livelihoods, and prosperity for generations to come.
