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Global investor T. Rowe Price has announced a new blue economy investment strategy designed to direct capital towards projects tackling global water challenges in emerging markets, including sustainable water management and ocean preservation.
The Emerging Markets Blue Economy Bond Strategy, or T. Rowe Price Blue for short, will invest in corporate blue bonds issued by financial institutions and companies that meet strict sustainability criteria. Funding will support projects such as marine ecosystem conservation, wastewater treatment, coastal adaptation, and clean water infrastructure.
Developed in partnership with the International Finance Corporation (IFC), a member of the World Bank Group, T. Rowe Price Blue has so far attracted more than US$200 million in commitments. Investors include Xylem Inc., a global water technology firm, and Builders Vision, an impact investment platform focused on sustainability, including ocean health.
The strategy is aligned with UN Sustainable Development Goals 6 and 14, which target clean water and healthy marine ecosystems, and is classified under Article 9 of the EU’s Sustainable Finance Disclosure Regulation, the highest level for sustainable investment.
According to the partners, the strategy is intended to help develop "a viable investment model for blue bonds in emerging markets", thus attracting additional private capital to address global water challenges.
Eric Veiel, Chief Investment Officer at T. Rowe Price, said the initiative “marks a significant step in addressing the need for sustainable water management and ocean preservation," adding, "By aligning the strategy’s investment objectives with specific water-related United Nations Sustainable Development Goals, we are not only mobilizing essential capital to protect and sustain our world's precious water resources, but we are also demonstrating our commitment to managing innovative and impactful investment strategies."
Vice President of Industries at IFC, Mohamed Gouled, said the partnership would “help build a stronger blue economy - one that safeguards water resources, drives investment, and creates quality jobs across emerging markets.”
“The strategy will directly benefit from IFC’s Blue Finance Guidelines, which provide a clear framework for channeling capital into high-impact ocean and water projects. Together, they give investors both the investment products and roadmap to scale credible blue finance - transforming sustainable water management and ocean preservation into engines for resilience, employment, and long-term prosperity," Gouled added.
The United Nations estimates that 2.2 billion people still lack access to safe drinking water and that more than 80% of wastewater is discharged untreated. The global blue economy is projected by OECD to reach US$3 trillion by 2030, highlighting both the urgency and the potential of sustainable water finance, the partners said.