Blue and Biodiversity Finance: A Hybrid Review of Emerging Frontiers of Environmental Finance

Abstract

This study explores the development of blue and biodiversity finance using a hybrid review approach that integrates bibliometric techniques with content analysis. Drawing on 183 peer reviewed articles sourced from Scopus, the analysis employs performance metrics and science mapping, followed by a focused review of 62 influential publications. Findings reveal a surge in scholarly interest since 2018, driven by innovative financing mechanisms such as blue and biodiversity bonds, with 2024 marking the peak in publications. Keyword co-occurrence and thematic mapping identify four dominant thematic clusters: (1) financing gaps, enablers, and challenges; (2) conventional approaches, including public investment and aid; (3) internal revenue-based models; and (4) market-based external financing mechanisms. The study advances theoretical understanding by clarifying the conceptual organization of this emerging field while offering practical guidance to investors, decision-makers, and conservation professionals on linking financial innovation with ecological outcomes. It also outlines future research directions focused on addressing regional disparities, evaluating the consequences of financialization, and expanding the use of novel financial instruments in environmental policy.