Sustainable finance is expanding beyond traditional renewable energy to focus on urgent and specialized areas like water and climate resilience.

• Blue Bonds Gain Momentum: Following the UN Ocean Conference in June 2025, there has been renewed interest in Blue Bonds. These function similarly to Green Bonds but specifically channel capital toward protecting and restoring aquatic ecosystems.
  • Investment Focus: Funds target initiatives like clean water infrastructure, sustainable fisheries, marine biodiversity conservation, and coastal resilience.
  • Market Action: The market for “blue” projects is growing rapidly, with one in five investors now actively seeking or considering these investments. For example, a $30 million blue bond was issued in May 2025 to finance the restoration of Lake Yojoa in Honduras.
• Climate Adaptation and Resilience: As the financial costs of climate change-driven natural disasters soar, financing for climate adaptation is moving from a secondary role to a core focus for investors. Investment is prioritizing more resilient infrastructure, flood protection, and drought-resilient crops, recognizing the growing need to safeguard economies against physical climate risks.