OA and Multilateral Development Finance

Field Value
Circular ID TG-1.7
Version 4.0
Badge Applied
Status Draft
Last Updated February 2026

1. Outcome

This Circular provides guidance on using Ocean Accounts to support business case development for multilateral development finance, including quantifying ocean-based development opportunities and natural capital benefits. It addresses how national statistical offices, ocean management agencies, and finance ministries can leverage the structured data from Ocean Accounts to strengthen project proposals and programme documentation for submission to multilateral development banks (MDBs) and international climate and biodiversity funds.

Readers will learn how to connect ocean accounting information to MDB project appraisal requirements, understand the role of natural capital valuation in cost-benefit analysis for development finance, and align ocean account reporting with emerging international frameworks for nature-related financial disclosure. The guidance supports practitioners in articulating the economic rationale for ocean investments using internationally standardised accounting information that is recognised by development finance institutions. By grounding project proposals in the structured data of Ocean Accounts, practitioners can strengthen the evidence base for sustainable ocean development, demonstrate alignment with environmental and social safeguards, and improve the monitoring and evaluation of financed activities.

Key decision contexts supported by this guidance include: MDB project appraisal using ocean accounting baselines, blue bond verification and impact reporting, Small Island Developing States (SIDS) ocean finance tracking for SDG 14.7 implementation, and Green Climate Fund and Global Environment Facility results frameworks that require quantified natural capital metrics. The structured information from Ocean Accounts provides the common baseline across these diverse financing contexts, enabling consistent measurement of ocean dependencies, environmental outcomes, and financial risks related to nature loss.

This Circular builds on the foundational concepts and terminology introduced in TG-0.1 General Introduction to Ocean Accounts and the statistical standards described in TG-0.2 Standards Overview. The guidance provided here supports downstream application at the project level (TG-1.8 OA and Project-Level Finance), detailed valuation methods (TG-1.9 OA and Natural Capital Valuation), and investment indicator compilation (TG-2.6 Ocean-related Investment).

2. Requirements

This Circular requires familiarity with:

Related circulars that build on this guidance:

3. Guidance Material

3.1 Ocean accounts and multilateral development finance

Ocean Accounts provide a structured information system that can support the preparation and appraisal of investment proposals for multilateral development finance. Multilateral development banks (MDBs)--including the World Bank Group, Asian Development Bank, African Development Bank, Inter-American Development Bank, European Bank for Reconstruction and Development, and Asian Infrastructure Investment Bank--collectively provide hundreds of billions of dollars in development financing annually, with increasing attention to climate adaptation, biodiversity conservation, and sustainable blue economy development[1]. Vertical climate and biodiversity funds, including the Green Climate Fund (GCF) and Global Environment Facility (GEF), provide additional financing channels with specific environmental mandates. The distinction between MDBs and vertical funds matters in practice because their appraisal processes differ: MDBs typically apply economic rate-of-return tests and safeguard compliance frameworks, whereas vertical funds such as the GCF and GEF employ investment criteria centred on paradigm-shift potential, climate rationale, or global environmental benefits. Practitioners should tailor their use of ocean accounting data to the specific requirements of the financing institution being approached.

The 2025 System of National Accounts (SNA) introduces new guidance on sustainability measurement that directly supports the use of accounting frameworks in development finance contexts. Chapter 35 of the 2025 SNA explains that accounting-based approaches that bring together information in a structured way and cover multiple capitals "provide an excellent structure for the required baseline information" for assessments of sustainability, capacity, resilience and risk[2]. The SNA further notes that "the use of a common baseline across different assessments can enhance the usefulness of assessments for decision makers since the differences across assessments can be more readily compared"[3].

For development finance purposes, Ocean Accounts can provide this common baseline by organising data on:

This structured information addresses core elements of MDB project appraisal: the economic rationale for investment, the baseline against which results will be measured, the environmental and social context in which projects operate, and the sustainability of anticipated benefits over time.

The 2025 SNA also introduces guidance on accounting for areas beyond national jurisdiction (ABNJ), noting that where there is interest in organising data about natural capital outside the scope of the national accounts, "the accounting definitions and treatments of the integrated framework of the SNA and the SEEA can be applied"[4]. This is particularly relevant for ocean financing that spans exclusive economic zones and high seas areas.

Downward connections to accounts, indicators and data

Ocean Accounts provide the downward connections that translate development finance commitments into measurable outcomes. The structured data from Ocean Accounts supports four key operational functions for multilateral development finance:

Baseline establishment for project appraisal: Ecosystem extent accounts (TG-3.1 Assets) establish pre-project stocks of marine habitats such as coral reefs, mangroves, and seagrass meadows. Ecosystem condition accounts record baseline health metrics--coral cover percentages, mangrove regeneration rates, water quality indicators--that define the starting point for impact assessment. Physical flow accounts (TG-3.2 Flows from Environment to Economy) quantify provisioning services such as fish catch and regulating services such as coastal protection, measured in physical units (tonnes of fish, linear kilometres of shoreline protected). These baselines are essential for MDB appraisal methodologies, which require quantified evidence of the natural capital at risk or the ecosystem services that investments will protect or enhance.

Results measurement for monitoring frameworks: Flow accounts provide the monitoring data required by MDB results frameworks and vertical fund reporting requirements. Ocean economy thematic accounts (TG-2.5 Ocean Economy Structure) track economic outcomes such as employment in sustainable fisheries or tourism revenues from marine protected areas. Investment indicators (TG-2.6 Ocean-related Investment) measure capital formation in ocean sectors, including gross fixed capital formation (GFCF) in vessels, port infrastructure, and aquaculture facilities, enabling tracking of whether development finance is catalysing additional private investment. Asset accounts document changes in natural capital stocks, revealing whether financed interventions are achieving their intended conservation or restoration outcomes. The time-series structure of Ocean Accounts enables before-and-after comparison essential for impact evaluation.

Risk assessment for financial structuring: Asset accounts quantify the natural capital stocks on which proposed investments depend, informing risk assessment. For example, coastal infrastructure investments depend on the coastal protection services provided by mangroves and reefs; if extent and condition accounts show declining trends in these ecosystems, this signals increased physical risk to project viability. Ocean economy accounts identify sectoral dependencies on ecosystem services--tourism depends on water quality and biodiversity, aquaculture depends on water quality and waste assimilation, fisheries depend on spawning habitat and nursery grounds. Quantifying these dependencies enables MDBs to assess nature-related risks to project cash flows, as required under the emerging frameworks for nature-related financial disclosure (TNFD, IFRS S1) discussed in Section 3.4 below.

Indicator reporting for policy targets: Ocean Accounts provide the source data for compiling indicators relevant to multilateral financing targets. SDG 14.7.1 (sustainable fisheries as proportion of GDP) can be derived from ocean economy thematic accounts by identifying the value added of sustainably managed fisheries relative to total GDP. SDG 14.5 (marine protected area coverage) can be reported from spatial extent accounts. GCF and GEF proposals increasingly require indicators on ecosystem condition, livelihoods, and climate adaptation benefits; Ocean Accounts provide the standardised measurement framework for compiling these indicators in a manner consistent with international statistical standards. For guidance on deriving these indicators, see TG-2.10 MEA Indicators.

3.2 Natural capital in project appraisal

The appraisal of development projects traditionally relies on cost-benefit analysis (CBA) to assess whether expected benefits exceed expected costs over the project lifetime. The SEEA Ecosystem Accounting (SEEA EA) framework, adopted as an international statistical standard in 2024, provides guidance on how ecosystem service values can be systematically incorporated into such analyses[5]. Detailed guidance on valuation methods is provided in TG-1.9 OA and Natural Capital Valuation.

A common focus in project appraisal is cost-benefit analysis, "entailing the measurement of the expected effects, both positive and negative, of a particular project, activity or policy change. This type of analysis, when undertaken in the context of decision-making in the public sphere, requires a comparison of the wider social costs and benefits of a given project, activity, or policy"[6]. Ocean Accounts provide baseline data on ecosystem condition and ecosystem service flows that can inform these comparisons.

The SEEA EA distinguishes between exchange values used in accounting (reflecting market prices or equivalent transaction values) and welfare values used in traditional cost-benefit analysis (reflecting total willingness to pay including consumer surplus). Both types of value have roles in development finance:

  1. Exchange values from ecosystem accounts provide a conservative, transaction-based measure that is directly comparable with other economic statistics including GDP and national wealth accounts. These values are appropriate for national accounting purposes, for assessing the macroeconomic significance of ecosystem contributions, and for ensuring consistency with broader national accounts data submitted to MDBs.
  2. Welfare values from complementary assessments provide a more comprehensive measure of total economic value that captures benefits to users beyond what they actually pay. MDB economic analysis guidance--including the World Bank's guidance on economic analysis of investment operations--typically requires welfare values for cost-benefit analysis because they reflect the full social benefits and costs relevant to public investment decisions.

In practice, practitioners preparing MDB project submissions should use welfare values as the primary basis for project-level cost-benefit analysis, consistent with standard MDB appraisal methodology, while referencing exchange values from the ecosystem accounts to establish the baseline asset stocks and service flows from which welfare-based assessments are conducted. The SEEA EA notes that "data from the ecosystem accounts can provide inputs to [externality] assessments through its recording of changes in ecosystem condition and changes in ecosystem services flows that arise as a result of a particular activity"[7]. This complementary use of both value concepts ensures that project documentation is grounded in the accounting framework while meeting MDB appraisal requirements.

When preparing project documentation for MDB financing, practitioners should:

  1. Use ecosystem accounts to establish baseline values for marine and coastal ecosystem assets in the project area
  2. Use ecosystem service flow accounts to quantify the current value of services provided to beneficiaries
  3. Apply net present value (NPV) approaches using appropriate discount rates to estimate changes in asset values under project scenarios
  4. Present welfare values as the primary input to cost-benefit analysis, supplemented by exchange values from the accounts to demonstrate consistency with the national statistical framework

The SEEA Central Framework provides detailed guidance on NPV approaches to asset valuation, noting that the net present value "is the value of an asset determined by estimating the stream of income expected to be earned in the future and then discounting the future income back to the present accounting period"[8]. This approach is directly applicable to valuing changes in ecosystem asset values under alternative project scenarios. For ecosystem assets, the choice of discount rate significantly affects valuations; the SEEA notes that "there is also support for the use of social discount rates in the valuation of environmental assets" given their "broad and long-term value to society as a whole"[9].

3.3 Aligning with MDB environmental and social safeguards

Multilateral development banks operate under environmental and social safeguard policies that establish requirements for project assessment, stakeholder engagement, and impact mitigation. Ocean Accounts provide data that can demonstrate compliance with and strengthen performance under these safeguards.

The principal MDB safeguard frameworks include the World Bank Environmental and Social Framework (ESF), which comprises ten Environmental and Social Standards (ESSs) covering assessment and management of environmental and social risks; the Asian Development Bank Safeguard Policy Statement (SPS 2009); the African Development Bank Integrated Safeguards System (ISS); and the Inter-American Development Bank Environmental and Social Policy Framework. While these frameworks differ in detail and procedural requirements, they share common substantive requirements related to:

Ocean Accounts organised under the SEEA framework directly address several of these requirements. Ecosystem extent accounts record the areas of different marine and coastal ecosystem types, providing baseline data for habitat protection targets. Ecosystem condition accounts track the state of ecosystems against reference benchmarks, enabling assessment of project impacts on ecosystem health. Asset accounts for fisheries and other biological resources record extraction relative to sustainable yields, demonstrating compliance with sustainable use requirements[10].

MDB safeguard-account alignment

Table 1 summarises how specific MDB safeguard policy requirements can be verified using metrics from ocean account components. This alignment demonstrates that Ocean Accounts provide a structured evidence base for safeguard compliance, enabling practitioners to draw directly on compiled accounting data rather than undertaking separate ad hoc assessments for each safeguard requirement.

Table 1: MDB Safeguard-Account Alignment

MDB Safeguard Policy Relevant Account Account Metric Verification Method Downward Connection
Environmental assessment Condition accounts Condition index change Pre/post comparison TG-3.1 Section 3.2
Biodiversity conservation Extent accounts Habitat area change Spatial analysis TG-3.1 Section 3.1
Pollution prevention Residual flow accounts Emission quantities Physical flow data TG-3.6
Sustainable resource use Asset accounts Extraction vs regeneration Stock-flow reconciliation TG-3.1 Section 3.3

In each case, the ocean account provides a standardised, repeatable measurement that can serve as the baseline for safeguard assessment and the monitoring indicator for safeguard compliance during project implementation. Condition accounts record changes against reference benchmarks, enabling environmental assessment requirements to be grounded in quantitative data. Extent accounts document habitat area by ecosystem type, directly supporting biodiversity conservation obligations. Residual flow accounts track pollutant discharges in physical units, providing the data needed to demonstrate pollution prevention performance. Asset accounts track extraction relative to regeneration for biological resources, demonstrating sustainable use.

The 2025 SNA identifies that "a related area of work is the assessment of enterprises' exposure to environmental risks, including climate risks and risks emerging from declines in nature and biodiversity. This work extends from assessing the physical risks to quantifying the financial risks to corporations, including through their supply chains"[11]. Ocean Accounts provide the baseline information needed to conduct such assessments in the context of development projects.

For climate resilience, Ocean Accounts can document:

SDG 14 (Life Below Water) establishes international commitments to "sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans"[12]. Ocean Accounts provide the structured data needed to demonstrate progress against SDG 14 targets, which increasingly feature in MDB results frameworks and country partnership strategies. For small island developing States (SIDS) and least developed countries (LDCs), SDG 14 specifically calls to "increase the economic benefits ... from the sustainable use of marine resources"[13]--a target that Ocean Accounts can directly monitor.

3.4 Monitoring, reporting and disclosure frameworks

The development finance landscape is increasingly shaped by requirements for sustainability monitoring, results reporting, and nature-related financial disclosure. Ocean Accounts can support compliance with these frameworks by providing structured, comparable data over time.

Sustainable finance classification: The 2025 SNA introduces guidance on measuring sustainable finance, including green bonds and sustainability-linked financial instruments. The SNA defines green finance as "finance for activities or projects that sustain or improve the condition of the environment"[14]. Ocean Accounts provide the baseline and monitoring data needed to verify that financed activities achieve environmental improvements, supporting efforts to combat "greenwashing" concerns in sustainable finance markets.

The SNA notes that "to support assessments of the effectiveness of sustainable finance, it is relevant to present data on the levels of investment in ESG and green activities ... alongside data about the outcomes arising from that activity"[15]. For ocean-related green bonds or blue bonds, ecosystem extent and condition accounts provide the outcome data against which the environmental effectiveness of financing can be assessed. Detailed guidance on compiling ocean investment indicators, including sustainable finance instruments, is provided in TG-2.6 Ocean-related Investment.

Nature-related financial disclosure: The Taskforce on Nature-related Financial Disclosures (TNFD) provides a framework for companies and financial institutions to report on nature-related dependencies, impacts, risks and opportunities[16]. The TNFD recommendations are structured around four pillars--governance, strategy, risk management, and metrics and targets--that parallel the climate-related disclosures established under the Task Force on Climate-related Financial Disclosures (TCFD) and now incorporated into IFRS Sustainability Disclosure Standards[17].

The TNFD notes that "nature risk, beyond climate change, is financial risk. Business as usual is no longer a viable option and nature must no longer be seen as a corporate social responsibility issue but a strategic risk management one"[18]. For development finance, this means that MDBs and their borrowers increasingly need systematic data on nature-related risks and dependencies--exactly the type of information that Ocean Accounts provide.

TNFD-aligned reporting is currently voluntary for most MDB borrowers; no MDB has yet mandated full TNFD-aligned disclosure as a condition of financing. However, several MDBs are progressively integrating nature considerations into their operational requirements. The International Finance Corporation (IFC), for instance, has incorporated biodiversity and ecosystem service considerations into its Performance Standards, and the broader trend toward mandatory nature-related disclosure--driven by regulatory developments in the European Union, the United Kingdom, and other jurisdictions--suggests that voluntary adoption now will facilitate compliance as requirements evolve. Practitioners are advised to treat TNFD-aligned reporting as an emerging expectation that strengthens financing proposals, even where it is not yet formally required.

Ocean Accounts can support TNFD-aligned reporting by providing:

IFRS sustainability disclosure: The International Sustainability Standards Board (ISSB) has established IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures) as global baseline standards for sustainability reporting[19]. The 2025 SNA notes that "these reporting requirements have been developed from initial work from the Financial Stability Board who developed the recommendations on climate-related disclosures and is extending to recommendations on nature-related disclosures"[20].

IFRS S1 establishes that sustainability-related information is useful to primary users because "an entity's ability to generate cash flows over the short, medium and long term is inextricably linked to the interactions between the entity and its stakeholders, society, the economy and the natural environment throughout the entity's value chain"[21]. For development projects, alignment with these disclosure frameworks enhances credibility with international investors and demonstrates that borrowing countries are building the data infrastructure needed for participation in global sustainable finance markets.

3.5 Application procedures for development finance institutions

This section provides a step-by-step procedure for development finance institutions and borrowing country agencies to use Ocean Accounts in preparing and appraising financing proposals. The procedure is structured around the typical MDB project cycle: identification, preparation, appraisal, approval, implementation, and evaluation.

Step 1: Identification phase--scoping the role of ocean natural capital

During the project identification phase, practitioners should determine whether ocean natural capital is material to the proposed investment. Key questions include:

If Ocean Accounts have been compiled for the country, practitioners should consult spatial extent accounts (TG-3.1) to determine whether the project footprint overlaps with mapped marine or coastal ecosystem assets. If no spatial accounts are available, practitioners should identify whether the country has compiled at least national-level ecosystem extent and condition data that can inform the project design.

Step 2: Preparation phase--establishing baselines and dependencies

During project preparation, Ocean Accounts provide the baseline data required for MDB appraisal documentation. Practitioners should:

  1. Extract baseline natural capital stocks: From ecosystem extent and condition accounts, extract the area and condition scores for ecosystem types within or adjacent to the project area. For example, for a coastal infrastructure project, document the extent of mangrove forests, seagrass meadows, and coral reefs within a defined buffer zone.

  2. Quantify ecosystem service flows: From physical and monetary ecosystem service flow accounts (TG-3.2), quantify the provisioning, regulating, and cultural services currently provided by ocean ecosystems in the project area. For example, for a fisheries management project, document the current sustainable catch potential (tonnes per year), the value of that catch (monetary units), and the number of people dependent on fishing livelihoods.

  3. Identify economic dependencies: From ocean economy thematic accounts (TG-2.5), identify the economic sectors active in the project area and their contribution to regional employment and GDP. This establishes the economic context for assessing project benefits.

  4. Document environmental pressures: From residual flow accounts (TG-3.6), document current levels of pollution, waste discharge, and resource extraction that the project aims to address or that the project will generate.

Step 3: Appraisal phase--demonstrating economic rationale and safeguard alignment

During MDB appraisal, Ocean Accounts support the economic analysis and safeguard compliance documentation:

  1. Economic analysis: Use NPV approaches to value ecosystem assets under alternative project scenarios (with-project versus without-project). For guidance on valuation methods, see TG-1.9. Present welfare values as the primary input to cost-benefit analysis, supplemented by exchange values from the ecosystem accounts to demonstrate consistency with national accounts. Document the discount rate used and justify its appropriateness for long-lived ecosystem assets.

  2. Safeguard compliance: Use the account-safeguard alignment in Table 1 to populate safeguard screening tools and environmental and social impact assessments. For example, to demonstrate compliance with biodiversity safeguards, cite extent account data showing that the project area includes X hectares of critical habitat, and present the project design measures to avoid, minimise, or compensate for impacts on those habitats.

  3. Results framework: Define project results indicators using metrics from Ocean Accounts. For example, an outcome indicator might be "area of mangrove habitat restored (hectares)" measured from extent accounts, and an impact indicator might be "coastal protection services provided (linear kilometres of shoreline)" measured from ecosystem service flow accounts.

Step 4: Implementation phase--monitoring and adaptive management

During project implementation, Ocean Accounts provide the monitoring data for results frameworks and safeguard compliance:

  1. Annual monitoring: Update extent, condition, and flow accounts on an annual basis for the project area. Compare monitored values against the baseline established in Step 2 and the targets defined in the results framework.

  2. Mid-term review: At mid-term, use time-series account data to assess whether the project is on track to achieve its natural capital targets. If condition accounts show declining trends in ecosystem health despite project interventions, this triggers adaptive management actions.

  3. Safeguard monitoring: Report on safeguard indicators using account data. For example, if the safeguard framework requires reporting on water quality, use residual flow accounts to report nutrient loading (kg nitrogen per year) or biochemical oxygen demand.

Step 5: Evaluation phase--impact assessment and lessons learned

At project completion, Ocean Accounts enable rigorous impact evaluation:

  1. Before-and-after analysis: Compare pre-project baselines (from Step 2) with post-project conditions (from Step 4) to assess the magnitude of change attributable to the project. Use statistical methods to control for confounding factors where possible.

  2. Attribution analysis: Use the integrated structure of Ocean Accounts to trace impacts through the system. For example, if the project restored mangroves, document the change in mangrove extent (from extent accounts), the change in fish biomass in associated waters (from asset accounts), and the change in fisheries livelihoods (from ocean economy accounts).

  3. Cost-effectiveness assessment: Compare the cost per unit of ecosystem service provided or natural capital restored against alternative approaches. For example, calculate the cost per hectare of mangrove restored, and compare against the cost of equivalent grey infrastructure for coastal protection.

3.6 Worked example: Blue bond impact report using ocean accounting data

This example demonstrates how a national government or subnational entity can use Ocean Accounts to prepare an annual impact report for blue bond investors, satisfying both use-of-proceeds verification and key performance indicator (KPI) monitoring requirements.

Context: A coastal state has issued a USD 100 million blue bond to finance ocean conservation and sustainable blue economy development. Bond proceeds are allocated to three use-of-proceeds categories: marine protected area management (40 per cent), sustainable fisheries infrastructure (35 per cent), and coastal ecosystem restoration (25 per cent). The bond covenants require annual reporting on use of proceeds and performance against KPIs.

Use-of-proceeds verification using Ocean Accounts: Ocean Accounts provide the data infrastructure to verify that bond proceeds are directed to eligible activities:

  1. Marine protected area management: Government expenditure accounts (TG-1.1 Section 3.3) classify ocean-related public expenditure by function, including expenditure on protected area management under the Classification of the Functions of Government (COFOG) 05.4 (Protection of biodiversity and landscape). The government reports that USD 40 million of bond proceeds were disbursed to protected area management agencies, verifiable against budget execution records. Extent accounts (TG-3.1) document that the funded protected areas cover 1.2 million hectares of marine ecosystems, including coral reefs, seagrass meadows, and pelagic zones.

  2. Sustainable fisheries infrastructure: Investment accounts (TG-2.6 Section 3.3) track gross fixed capital formation (GFCF) in ocean industries by asset type. The government reports that USD 35 million of bond proceeds financed capital investments in fisheries monitoring systems, cold chain infrastructure, and vessel upgrades, recorded under GFCF in machinery and equipment and transport equipment. Physical supply and use tables (TG-3.2) document that the funded infrastructure serves fisheries extracting 45,000 tonnes of fish per year from stocks assessed as within biologically sustainable levels.

  3. Coastal ecosystem restoration: Environmental protection expenditure accounts (SEEA CF Chapter IV) track expenditure on environmental protection purposes, including ecosystem restoration under COFOG 05.4. The government reports that USD 25 million of bond proceeds financed mangrove and seagrass restoration activities. Extent accounts document that the funded restoration activities increased mangrove extent by 3,200 hectares and seagrass extent by 1,800 hectares.

KPI monitoring using Ocean Accounts: The blue bond covenants define four KPIs, each linked to specific ocean accounting data sources:

KPI 1: Biodiversity conservation (target: maintain or improve coral reef health): Condition accounts (TG-3.1 Section 3.2) provide the data source. The government reports that coral cover within funded marine protected areas was 32 per cent at bond issuance (baseline year) and 35 per cent in the reporting year, measured through standardised reef monitoring surveys compiled into the condition accounts. This represents a 3 percentage point improvement, meeting the KPI target. The data are compiled annually, enabling time-series monitoring of reef health.

KPI 2: Water quality (target: reduce nutrient loading by 10 per cent): Residual flow accounts (TG-3.6) track emissions to water bodies in physical units. The government reports that nitrogen loading to coastal waters in the project areas was 1,200 tonnes per year at baseline and 1,050 tonnes per year in the reporting year, representing a 12.5 per cent reduction. This exceeds the KPI target and is attributed to improved wastewater treatment funded by bond proceeds. The data are compiled quarterly and aggregated to annual figures for bondholder reporting.

KPI 3: Blue carbon sequestration (target: sequester 50,000 tonnes CO2-equivalent per year): Carbon stock accounts (SEEA CF Chapter 3) measure carbon storage in biomass and soils for coastal ecosystems. The government reports that the 3,200 hectares of restored mangroves and 1,800 hectares of restored seagrass funded by bond proceeds sequester an estimated 48,000 tonnes CO2-equivalent per year, based on carbon sequestration rates from TG-6.2 Mangrove and Coastal Wetland Accounting and TG-6.3 Seagrass Ecosystem Accounting. While slightly below the target in the first reporting year, the government notes that sequestration rates will increase as restored ecosystems mature.

KPI 4: Fishing employment (target: maintain or increase formal employment in sustainable fisheries): Ocean economy thematic accounts (TG-2.5 Table 3.2) track employment by ocean industry, including marine fishing and aquaculture. The government reports that formal employment in marine fishing was 32,000 persons at baseline and 33,500 persons in the reporting year, representing a 4.7 per cent increase. The increase is attributed to improved fisheries management and infrastructure that reduced post-harvest losses and increased the economic viability of small-scale fisheries. Employment data are sourced from labour force surveys and compiled into the economic activity accounts.

Outcome data presentation: Table 2 presents the KPI performance data in a format suitable for inclusion in the annual blue bond impact report.

Table 2: Blue Bond KPI Performance (Reporting Year 1)

KPI Baseline Target Actual Status Account Source
Coral cover (%) 32 ≥32 35 Met Condition accounts
Nitrogen loading (tonnes/year) 1,200 ≤1,080 1,050 Exceeded Residual flow accounts
Blue carbon (tonnes CO2e/year) 0 50,000 48,000 Approaching Carbon stock accounts
Fishing employment (persons) 32,000 ≥32,000 33,500 Exceeded Economic activity accounts

Lessons learned: This worked example demonstrates that Ocean Accounts provide a complete data infrastructure for blue bond impact reporting, addressing both use-of-proceeds verification and KPI monitoring within a single integrated framework. The accounting structure ensures consistency over time, comparability across reporting entities, and alignment with international statistical standards. Practitioners preparing blue bond documentation can specify Ocean Accounts as the data source for impact metrics during bond structuring, ensuring that monitoring systems are in place before bond issuance. For detailed guidance on structuring blue bonds and other project-level finance instruments, see TG-1.8 OA and Project-Level Finance.

3.7 Case applications

The following illustrative examples demonstrate how Ocean Accounts can be applied in multilateral development finance contexts. These are stylised applications intended to show the range of use cases; as implementation experience from GOAP partner countries accumulates, future versions of this Circular will incorporate empirical case studies.

Application 1: Coastal resilience infrastructure financing

A coastal state seeks financing from an MDB for integrated coastal protection that combines grey infrastructure (sea walls, drainage) with nature-based solutions (mangrove restoration, coral reef rehabilitation). Ocean Accounts support the financing proposal by:

The ecosystem accounts enable comparison of full project benefits (including nature-based components) against a conventional grey-infrastructure-only alternative, potentially demonstrating superior cost-effectiveness and co-benefits. For project-level implementation details, see TG-1.8 OA and Project-Level Finance.

Application 2: Sustainable fisheries programme

An MDB considers financing a comprehensive fisheries management programme including stock assessment, monitoring and surveillance, market access improvements, and community development. Ocean Accounts inform the programme design by:

The asset accounts demonstrate that current depletion exceeds sustainable levels, providing economic justification for management investment. The 2025 SNA treatment of depletion as a cost of production means that unsustainable extraction is now reflected in reduced net national income, strengthening the fiscal case for intervention[22].

Application 3: Blue economy development

A regional development bank supports a multi-sector blue economy programme spanning marine tourism, sustainable aquaculture, and renewable ocean energy. Ocean Accounts provide the integrated information base by:

The accounts enable results-based monitoring that tracks both economic and environmental outcomes, demonstrating to financiers that blue economy growth is occurring within ecological limits.

Application 4: Climate adaptation fund proposal

A small island developing state (SIDS) seeks financing from the Green Climate Fund for climate adaptation investments. Ocean Accounts strengthen the proposal by:

SDG 14 target 14.7 calls to "increase the economic benefits to small island developing States and least developed countries from the sustainable use of marine resources"[23]. Ocean Accounts provide the data infrastructure to measure progress against this target and to demonstrate the climate rationale for ocean investments.

4. Acknowledgements

This Circular has been prepared as a draft for review and comment. Final approval will follow the GOAP Technical Experts Group procedures.

Authors: Dan Whitaker (Co-Author)

Reviewers: To be confirmed following expert review process

5. References

  1. United Nations. (2024). Financing for Sustainable Development Report 2024. Inter-agency Task Force on Financing for Development. New York. ↩︎

  2. United Nations. (2025). System of National Accounts 2025, Chapter 35, para 35.115: "Accounting-based approaches that bring together information in a structured way and which cover multiple capitals provide an excellent structure for the required baseline information." ↩︎

  3. United Nations. (2025). System of National Accounts 2025, Chapter 35, para 35.115. ↩︎

  4. United Nations. (2025). System of National Accounts 2025, Chapter 35, para 35.129: "Where there is interest in organising data about these types of natural capital outside of the scope of the integrated framework of the SNA in a manner that can be directly related to country based measures, the accounting definitions and treatments of the integrated framework of the SNA and the SEEA can be applied." ↩︎

  5. United Nations. (2024). System of Environmental-Economic Accounting -- Ecosystem Accounting (SEEA EA). Statistical standard adopted by the United Nations Statistical Commission. ↩︎

  6. United Nations. (2024). SEEA Ecosystem Accounting, Chapter 12, para 12.16. ↩︎

  7. United Nations. (2024). SEEA Ecosystem Accounting, Chapter 12, para 12.18. ↩︎

  8. United Nations. (2014). System of Environmental-Economic Accounting 2012 -- Central Framework, Glossary: "Net present value is the value of an asset determined by estimating the stream of income expected to be earned in the future and then discounting the future income back to the present accounting period." ↩︎

  9. United Nations. (2014). SEEA Central Framework, Chapter 5, para 5.148. ↩︎

  10. United Nations. (2014). SEEA Central Framework, Chapter 5: Asset accounts and the valuation of environmental assets. ↩︎

  11. United Nations. (2025). System of National Accounts 2025, Chapter 35, para 35.119. ↩︎

  12. United Nations. (2015). Transforming our world: the 2030 Agenda for Sustainable Development. Resolution adopted by the General Assembly, A/RES/70/1. SDG 14, Target 14.2. ↩︎

  13. United Nations. (2015). 2030 Agenda for Sustainable Development. SDG 14, Target 14.7. ↩︎

  14. United Nations. (2025). System of National Accounts 2025, Chapter 35, para 35.122: "Green finance is finance for activities or projects that sustain or improve the condition of the environment." ↩︎

  15. United Nations. (2025). System of National Accounts 2025, Chapter 35, para 35.126. ↩︎

  16. Taskforce on Nature-related Financial Disclosures. (2023). Recommendations of the Taskforce on Nature-related Financial Disclosures. September 2023. ↩︎

  17. ISSB. (2023). IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information. International Sustainability Standards Board. June 2023. ↩︎

  18. TNFD. (2023). Recommendations of the Taskforce on Nature-related Financial Disclosures, Foreword, p.1. ↩︎

  19. ISSB. (2023). IFRS S2 Climate-related Disclosures. International Sustainability Standards Board. June 2023. ↩︎

  20. United Nations. (2025). System of National Accounts 2025, Chapter 35, para 35.119. ↩︎

  21. ISSB. (2023). IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, para 2. ↩︎

  22. United Nations. (2025). System of National Accounts 2025, Annex 4, para A4.59: "Depletion of non-produced natural resources is recorded as a cost of production in the 2025 SNA." ↩︎

  23. United Nations. (2015). 2030 Agenda for Sustainable Development. SDG 14, Target 14.7. ↩︎