Innovative finance

Blue Peace works to transform transboundary water resources and multi-stakeholder cooperation frameworks into investment platforms through innovative blended finance and by promoting so-called “Blue Peace Bonds”.

Given the limited access to capital markets for non-sovereign entities such as river basin organisations and local governments that manage water resources,  the Blue Peace initiative seeks to use water as an entry point for financial investments. The dedicated project, “Blue Peace Financing Initiative”, aims to unlock public and private capital by providing de-risking mechanisms and technical assistance for water-related projects.

Water as investment opportunity

Blue Peace seeks to change investors’ perception so that water is not considered a distinct sector, but rather an entry point for multisectoral, local, and regional investment opportunities. The mechanism behind the Blue Peace Financing Initiative (BPFI) aims to open up a new and innovative market within the field of sustainable finance, while contributing to sustainable development and peaceful societies. Meanwhile, global investors are increasingly interested in supporting the sustainable management of natural resources, including water.

Cooperation frameworks

Blue Peace financing intends to transform transboundary water resources and multi-stakeholder cooperation frameworks into bankable investment platforms. These may be financed by issuing “Blue Peace Bonds” or through other appropriate financing instruments.

Such cooperation frameworks can consist of basin-level, multisector master development and joint investment plans across riparian countries. The BPFI provides technical assistance and supports the elaboration of multisector master plans. The mobilised capital through Blue Peace Bonds can then be used to implement multi-sector project pipelines.

 

Example: Blue Peace Financing in West Africa

Implemented by the UN Capital Development Fund (UNCDF), the BPFI supports the Gambia River Basin Development Organization (OMVG) in accessing capital markets to help finance its integrated development master plan through a Blue Peace Bond. These investments aim to enable millions of people living in the basin, covering The Gambia, Guinea, Guinea-Bissau and Senegal, to benefit from improved access to hydroelectric power, drinking water and sanitation, as well as enhanced food security. This should ultimately contribute to the stability of the entire sub-region and its sustainable socio-economic development.

Visit the website of the Blue Peace Financing Initiative