Naidoo and Kafcas Co-Author Column for Global Banking & Finance Review Magazine on “Blue Economy” and Related Financial Products

January 3, 2020

McGuireWoods London partners Marc Naidoo and Jennifer J. Kafcas co-authored a column for Global Banking & Finance Review magazine in which they discussed the “Blue Economy,” issues related to its regulation and promotion, and whether it can be leveraged to develop derivatives products.

Naidoo and Kafcas wrote that the Blue Economy is “generally defined as those economic sectors which have a direct or indirect line to marine resources,” pointing out that by 2030 it “could outperform the growth of the global economy,” according to the OECD.

According to Naidoo and Kafcas, the ocean “has an annual economic value generation of at least $2.5 trillion (making it the world’s seventh largest economy by asset class).” However, developing it as an asset class depends on translating it “into ‘eligible blue investment categories’” and creating investment vehicles that show both a positive return and a positive effect on ocean resources.

“As things stand, the regulatory environment is complicated by the fact that there are numerous definitions identified by various industry players as to what ‘sustainable blue financing’ means,” Naidoo and Kafcas wrote.

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