Financing Resilience for Ocean Economies

Oceans play a critical role in climate stability and economic activity, supporting life and livelihoods. Over recent decades, the ocean economy has doubled in real terms (from USD 1.3 trillion in 1995 to US 2.6 trillion in 2020.) For maritime nations, and especially Small Island Developing States (SIDS), this growth is foundational, underpinning livelihoods, fiscal stability, and many elements of long-term development.

Yet, despite its importance, this economic engine and the countries that rely on it remain acutely vulnerable to climate-driven shocks. When natural disasters strike—and they are striking with greater frequency and intensity—SIDS and coastal states are often forced to take on expensive loans for recovery, triggering cycles of unsustainable debt. This limits their ability to progress their development priorities, oceanic health and industry central among them. Perpetual and catastrophic risks also constrain their ability to borrow on favorable terms. Considering these circumstances, ensuring developing maritime economies have the resources they need to address climate change and mitigate its shocks, while also protecting and growing their maritime economies, remain a critical challenge.

In response, Perry World House organized a workshop on April 9, 2026, titled “Financing Resilience for Ocean Economies.” It convened academics, policymakers, and practitioners from a range of country (Australia, Fiji, Maldives, Palau, and Seychelles) and institutional (International Monetary Fund, Inter-American Development Bank, and United Nations Environment Programme, among many others) perspectives to examine how to think about valuing and financing maritime resilience in developing countries, especially SIDS. Their deliberations advanced the elements of a Blue Finance Toolkit—a mosaic of financial instruments policymakers could use to finance ocean resilience in the face of rising climate risks. The framework, described below, organizes ocean financing options into revenues, savings, and costs, to help tailor specific financial instruments to needs and maximize their impact.