Seychelles’ blue finance: A blueprint for marine conservation?

Abstract

Both media and academia have described the Seychelles’ blue finance transactions as a blueprint for marine conservation, national development and financial innovation. The two blue finance transactions are the 2016 Debt for Nature Swap facilitated by The Nature Conservancy, and the 2018 Seychelles Blue Bond facilitated by The World Bank. These initiatives are widely considered to fund activities that improve oceanic health and develop the nation’s “blue economy.” Specifically, these transactions fund a marine spatial planning process that culminates in establishing sizeable marine protected areas. Substantial and broad claims have been made in the media and in published academic research for the effectiveness of these financial innovations. We found that sovereign debt was not reduced by these transactions and has not diminished since. The ‘debt for nature swap’ did not secure environmental protections beyond commitments already made by the Seychelles Government prior to the swap with the exception of some minor changes in artisanal fisheries regulations, but did fund a planning process for their implementation. The significant no-take area for industrial fishing will simply lead to relocation of fishing effort. The characterizations of these blue finance transactions in media and in published academic research differ significantly from their reality. SIDS that are struggling with high public debt loads should be aware that these transactions will increase public indebtedness to fund activities and structures that reduce sovereign control of oceanic resources through shared governance.