Jeremy Raguain

The Seychelles blue bond is an innovative finance mechanism that has played a pivotal role in shaping the global landscape of blue bonds. Seychelles leadership in the blue economy sets a significant precedent. However, this precedent has also raised concerns among various stakeholders. This study evaluates of Seychelles’ sovereign blue bond, which was co-developed by the government of Seychelles and the World Bank. Three themes are explored, how the blue bond relates to other actors and donors in the blue economy space of Seychelles; how the blue bond contributes to advancing the national agenda and blue economy of Seychelles; and the key strengths, enablers and weaknesses of the blue bond. A series of considerations for future blue financing and blue bond mechanisms are presented, based on the findings of this study, to ensure that financing extends beyond blue washing and contributes meaningfully to the holistic transition to a sustainable blue economy. Our findings imply significant considerations for stakeholders in sustainable finance, suggesting ways to enhance the efficacy of blue bonds and emphasising the need for further research on their long-term impact and integration with other financial instruments.

Blue carbon has been proposed as a nature-based solution for climate change mitigation; however, a limited number of published works and data and knowledge gaps hinder the development of small island developing states’ (SIDS) national blue carbon resources globally. This paper reviews the blue carbon ecosystems of Seychelles as a case study in the context of SIDS, comparing estimations by the Blue Carbon Lab and recent blue carbon (mangrove and seagrass) evaluations submitted to the Seychelles national government. Mangroves (2195 ha, 80% in Aldabra Atoll) and seagrasses (142,065 ha) dominate in Seychelles, with coral reefs having the potential for carbon sequestration (169,000 ha). Seychelles is on track to protecting its blue carbon, but these systems are threatened by rising sea levels, coastal squeeze, erosion, severe storms, and human activities. The importance of carbon inventories, accounting institutions, and continuous monitoring of blue carbon systems is discussed. Blue accounting is necessary for accurate accounting of carbon sequestration and carbon storage, generating carbon credits, and representing impactful reductions in greenhouse gases for NDCs. Challenges and opportunities include policy legislation regarding ownership rights, accreditation and certification for carbon credits, sustainable financing mechanisms like natural asset companies and blue tokens, local engagement for long-term success, and carbon market dynamics following COP27. The restoration and regulation of blue carbon resources for optimal ecosystem services delivery, carbon inventories, and blue carbon policy are recommended development priorities. Blue carbon ecosystems have the potential to contribute to NDCs of SIDS while simultaneously offering sustainable development pathways for local communities through the multiple ecosystem services they provide.

Small island states receive unprecedented amounts of the world’s plastic waste. In March 2019, we removed as much plastic litter as possible from Aldabra Atoll, a remote UNESCO World Heritage Site, and estimated the money and effort required to remove the remaining debris. We removed 25 tonnes at a cost of $224,537, which equates to around $10,000 per day of clean-up operations or $8,900 per tonne of litter. We estimate that 513 tonnes (95% CI 212–814) remains on Aldabra, the largest accumulation reported for any single island. We calculate that removing it will cost approximately $4.68 million and require 18,000 person-hours of labour. By weight, the composition is dominated by litter from the regional fishing industry (83%) and flip-flops from further afield (7%). Given the serious detrimental effects of plastic litter on marine ecosystems, we conclude that clean-up efforts are a vital management action for islands like Aldabra, despite the high financial cost and should be integrated alongside policies directed at ‘turning off the tap’. We recommend that international funding be made available for such efforts, especially considering the transboundary nature of both the marine plastic litter problem and the ecosystem services provided by biodiversity-rich islands.