Responsible Investment in Blue Carbon Resources: 'Constraints and Potential Motivations for Attracting Private Capital Investment in Blue Carbon Resources'

The Journal of Environmental Investing, Vol. 9(1), 2019

16 Pages Posted: 18 Nov 2019

See all articles by Ryan Cook

Ryan Cook

University of Melbourne, Office of Environmental Programs, Students

Dr Sebastian Thomas

University of Melbourne

Date Written: November 7, 2018

Abstract

Blue carbon ecosystems such as mangroves, tidal marshes, and seagrasses are increasingly recognized for their carbon sequestration capacity. While blue carbon science and policy research is advancing, private investment perspectives in relation to blue carbon are limited. Within this context, there are emerging shifts in global private capital markets aimed at more measured capital deployment and responsible investment. Such shifts often align with the United Nations Sustainable Development Goals (SDGs) and are guided by initiatives such as the United Nations Principles for Responsible Investment (PRI). This study uses an anonymous online survey and quantitative exploratory analysis of the perspectives of 44 large-scale private investment respondents, primarily from Australia. Respondents were segmented into actors with for-profit and not-for-profit motives. Key research findings were the comparatively low levels of respondent familiarity with the term blue carbon compared to similarly themed terms. This finding was supported by respondents indicating a low level of knowledge relating to carbon market investments. Respondents remained focused predominantly on return on investment (ROI), but many viewed associated co-benefits as an important factor when considering large-scale investment. This research expands on existing knowledge of investment in blue carbon with a more targeted focus on private large-scale investment motivations and constraints. Drawing on research findings, a conceptual model of blue carbon market constraints and motivations was developed.

Keywords: blue carbon, responsible investment, private investment, ESG, conservation finance

JEL Classification: Q56, Q59

Suggested Citation

Cook, Ryan and Thomas, Dr Sebastian, Responsible Investment in Blue Carbon Resources: 'Constraints and Potential Motivations for Attracting Private Capital Investment in Blue Carbon Resources' (November 7, 2018). The Journal of Environmental Investing, Vol. 9(1), 2019, Available at SSRN: https://ssrn.com/abstract=3482188

Ryan Cook (Contact Author)

University of Melbourne, Office of Environmental Programs, Students ( email )

Australia

HOME PAGE: http://https://study.unimelb.edu.au/find/courses/graduate/master-of-environment/

Dr Sebastian Thomas

University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

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