Innovative Blue Finance Investment Model for Sustainable Ocean Economies for Resilient Coastal Development

Abstract: The study investigated the potential of a Blue Finance Investment Model (BFIM) for constructing sustainable ocean economies through climate-resilient coastal development. The study aimed to reduce the vulnerability of coastal and marine ecosystems due to climate change, overfishing, and pollution. It had the objectives of proposing an integrative blue finance framework to enhance sustainability in coastal regions such as Southeast Asia and the Caribbean, with a focus on environmental, social, and economic resilience. The problem solved was increasing pressure on ocean resources and the need for sustainable management to protect marine ecosystems and maintain coastal livelihoods. The theoretical framework merged Sustainable Development Theory with the Resource-Based View (RBV) of prioritising the combination of economic development and environmental protection. The study employed a mixed-methods approach, involving desk-based analysis of secondary data from global agencies like the World Bank and UNCTAD, case studies, and stakeholder interviews. It focused on blue economy investments, examining tools like blue bonds, carbon credits, and marine spatial planning (MSP). Quantitative analysis through SPSS and Stata was employed in the study to examine correlations between blue finance investments, marine GDP, biodiversity, and community engagement. Findings indicate positive correlation between blue finance investments and increased marine GDP, biodiversity, and community engagement. Community engagement was identified as a strong predictor of favourable environmental outcomes. Blue finance was found to have the potential to make a significant impact in coastal development, especially when supported by good governance and community engagement. The study recommended that blue finance models could only be employed effectively by increasing investment, increasing stakeholder participation, and improving governance, and such would be necessary to enhance ecological resilience and economic wellbeing of coastal communities.