Designing Environmental Performance Indicators for Sovereign Blue Finance: A Case Study for Fiji

Abstract

This study develops a framework for identifying nature-related Key Performance Indicators (KPIs) suitable for sovereign blue finance. Despite growing interest in financing ocean sustainability, the limited availability of high-integrity indicators for marine and coastal systems constrains capital deployment and the effective use of performance-based financial instruments. To address this gap, the study proposes a framework to compile the current landscape of marine KPIs and evaluates a selected set of candidate indicators across three dimensions: data reliability, policy alignment, and financial materiality. The framework is applied to Fiji as a case study, reflecting the central role of marine ecosystems in Small Island Developing States. The analysis highlights key trade-offs in KPI selection and provides a basis for designing credible and effective indicator frameworks for blue finance instruments.