Ørsted, on World Ocean Day, has distinguished itself as the first energy company to issue energy blue bonds. These bonds, worth EUR 100 million, serve as an innovation in sustainable ocean financing, pushing forward Ørsted’s 2030 goal of a net-positive impact on biodiversity. This is not just a remarkable milestone for Ørsted, but it is a significant leap for the entire renewable energy sector.
What are Energy Blue Bonds?
Introduced in 2018, blue bonds are financial instruments designed to attract investment towards ocean-based projects that yield environmental, economic, and climate benefits. The Ørsted Blue Bonds, compliant with the IFC Blue Finance Guidelines, aim to diversify and expand the sustainable ocean finance market.
Ørsted Funds For Biodiversity
The funds raised from these blue bonds will finance Ørsted’s ambitious projects targeting offshore biodiversity and sustainable shipping. The company is set to invest more in marine and coastal biodiversity protection and restoration initiatives, alongside efforts to innovate and upscale these measures. For sustainable shipping, Ørsted intends to be at the forefront of green ocean fuel development, leading the way towards decarbonizing ocean vessels.
Reaction from the UN and Global Compact
Sanda Ojiambo, UN Assistant Secretary-General and CEO of the UN Global Compact, lauds the role of blue bonds in fostering a more sustainable ocean economy, expressing:
“A thriving sustainable ocean economy holds many of the solutions needed to tackle the climate and nature crises of today. Blue bonds, such as Ørsted’s, issued by the private sector are important tools for delivering crucial financing for projects aimed at addressing a broad scope of environmental and social issues facing our world today.”
Ørsted Shares Ambition and Projects for Biodiversity
Recognizing the interconnected crises of climate and biodiversity, Ørsted announced in 2021 its ambition to have a net-positive biodiversity impact for all new renewable energy projects commissioned from 2030. Pilot projects range from salt marsh and seagrass restoration to 3D-printed reefs for restoring critical ecosystems in the North Sea.
The Future of Blue Bonds and Sustainable Ocean Action
With the green bond market surpassing USD 2 trillion in total issuance, blue bonds are anticipated to experience robust market growth. Ørsted aims to contribute significantly through blue bond financing, helping bridge the funding gap for sustainable ocean action.
Daniel Lerup, CFO of Ørsted, shares his vision:
“We’re currently witnessing a substantial funding gap for sustainable ocean action. As pioneers in the industry, we believe the moment is right to introduce blue bonds, which are in a similar position to where green bonds were 10 years ago.“
A Sustainable Oceon Economy
Ørsted’s inaugural issuance of blue bonds symbolizes a promising step towards a more sustainable and resilient ocean economy. The prospect of investing in renewable energy and biodiversity simultaneously has never been more within reach.
How do you think these blue bonds will influence the future of sustainable finance and ocean conservation? Share your thoughts in the comments below! We’re excited to hear your views on this groundbreaking development.
