The Role of Financing Mechanism in Sustainable Transformation to a Bluer Economy in Australia
Qualitative Paper
Abstract
This article examines the role of sustainable finance and investment in the Australian ocean economy and how the financial sector interacts with ocean development and supports the transition towards a sustainable blue economy in Australia. The article first introduces the background and importance of the blue economy towards Australian sustainability development. The paper discusses influential factors on financial decisions from environmental, social, and governance (ESG) perspectives, improved reporting and disclosure standards, and the emergence of blue bonds and investment markets. The article also assesses the role of policies and regulations in scaling up blue finance and investments in blue carbon ecosystems and biodiversity. Subsequently, it conducts a climate scenario analysis of the Australian stock market using the Paris Agreement Capital Transition Assessment (PACTA) with a portfolio construction framework. The article also researches the most dynamic industries interacting with Australian blue investments via case studies, including offshore wind, aquaculture (and fishery) and marine biotechnology. The article concludes with policy recommendations for aligning Australia’s financial sector with global climate and sustainability goals specified on the Ocean Panel.
Keywords: Australia, Blue Economy, Financing Mechanisms, Sustainability
JEL Classification: G28, Q01, Q5
Fu, Changfa and Mi, Sining, The Role of Financing Mechanism in Sustainable Transformation to A Bluer Economy in Australia (March 3, 2023). Available at SSRN: http://dx.doi.org/10.2139/ssrn.4376876.
ACCEPTED by Global Finance Conference 2023