Washington, Jun 11 (EFE News) .- Latin America and the Caribbean have “enormous potential” in the face of blue bonds, a new financial instrument related to oceans or water, given their biodiversity and the great economic needs that faces to face climate change and the pandemic, said James Scriven, manager of IDB Invest.
Blue bonds are part of the new wave of thematic bonds, such as the green ones linked to renewable energy or energy efficiency, recently emerged in the global capital markets.
Scriven highlighted in an interview with Efe that the purpose of these debt instruments is to “connect” investors with the objectives of sustainable development, which is why they have “enormous potential.”
“Traditionally, managers only cared about returns. Now new investors, especially the younger generations, are much more interested in knowing whether they are investing in tobacco, charcoal, or their impact on development,” he said.
As a consequence, the head of IDB Invest said that managers and capital markets are being “mobilized” to “produce development assets” something that, he stressed, “had not happened before.”
Faced with this demand, Scriven pointed out, blue bonds are created and the role of multilateral organizations is to “give confidence” to the investor, by guaranteeing that “what they are investing in is what they really want.”
At the moment, there are only four emissions globally in China, Finland and the Seychelles, but the path in the region is extremely wide.
The sea represents 60% of the sovereign territory of 22 Latin American countries, and 25% of the population lives on the coast, a percentage that rises to almost 100% in the Caribbean.
To this must be added that, after the economic crisis caused by the pandemic, the fiscal capacity of governments has been further strained and that most Latin American countries “have gone backwards” in their levels of development.
Article source: https://es-us.finanzas.yahoo.com/
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