Despite growing commitments to ocean-related themes, the ocean remains "chronically underfunded" with Sustainable Development Goal 14 continuously receiving the least amount of funding, according to T. Rowe Price, the winner of this year's ESG Investment Initiative of the year – Americas.

T. Rowe Price's head of ESG fixed income Tongai Kunorubwe told Environmental Finance that this funding gap prevents meaningful progress and could be "devastating" in the long term.

It means that ocean funding will need to scale up at a rapid rate – representing a key opportunity for investors.

"Investment in the blue economy is critical in addressing the planetary and societal risks posed by the current chronic underfunding that is evident in the blue economy," said Kunorubwe.

He added: "Capital markets, and the bond market in particular, have a critical role to play in funding clean water and sanitation, alongside investments in healthy oceans and riverine bodies."

To improve access to blue finance projects, T. Rowe Price and the International Finance Corporation (part of the World Bank Group) announced in November 2023 that they were partnering to grow the blue bond market to address the planetary and societal risks posed by the current underfunding of the blue economy.

Currently in development stage, T. Rowe Price will work with investors onfocusing on both marine projects and wastewater initiatives.

The collaboration will also look to improve market standards by jointly developing Blue Impact Investment Guidelines, which will then be used to inform its investment strategy. This will be aligned with the IFC's existing Guidelines for Blue Finance, published in 2022.