Key Impact Points:
- Luxembourg pledges €5M in junior equity to Outrigger Impact Fund I, targeting climate resilience in Small Island Developing States (SIDS).
- The €100M fund will support sustainable aquaculture, ocean conservation, ecotourism, and offshore renewables.
- The initiative aligns with EU’s Global Gateway agenda and aims to mobilize private capital to close climate finance gaps.
Luxembourg and EIB Global Join Forces for Ocean-Based Climate Solutions
Luxembourg is partnering with EIB Global to contribute €5 million to the Outrigger Impact Fund I, a new initiative designed to support climate resilience and low-carbon development in Small Island Developing States (SIDS). The fund, managed by UK-based Outrigger Impact, has a target size of $100 million and will focus on ocean-based sectors within the sustainable “blue economy.”
Announced at the 2025 United Nations Ocean Conference in Nice, France, the investment will be channeled through the Luxembourg-EIB Climate Finance Platform (LCFP). EIB Global will oversee the contribution to ensure strategic and impactful deployment.
“This investment reflects our ambition to drive more capital towards climate resilience where it is most urgently needed. By backing the Outrigger Impact Fund I through the provision of junior equity, we aim to de-risk innovative projects in the blue economy and mobilise private finance at scale,” said Luxembourg Minister of Finance Gilles Roth.
Fund Aims to Address Climate Gaps for Vulnerable States
The fund will provide debt and equity financing for SIDS projects in areas such as sustainable aquaculture, marine conservation, ecotourism, and offshore renewable energy. These initiatives are designed to help local economies adapt to climate change, reduce greenhouse gas emissions, and create long-term sustainable income for vulnerable coastal communities.
“Small Island Development States are disproportionally affected and face a finance gap at the same time,” said Luxembourg’s Minister of Environment, Climate and Biodiversity Serge Wilmes. “The blue economy offers an opportunity for SIDS to help adapt to climate change, protect and restore nature, while generating sustainable income for the most vulnerable communities.”
Leveraging Private Capital and Scaling Impact
As a junior equity investor, Luxembourg’s stake will help de-risk the fund, aiming to attract additional private investment. According to EIB Vice-President Ambroise Fayolle, this is critical given the under-financing of SIDS in the global climate space:
“Small Island Developing States are disproportionately at risk of the impacts of climate change and receive immeasurably less financing than other developing or low-income countries. That’s why this fund is important – at the portfolio level it is expected to multiply investments with a significant leverage.”
The fund will focus on catalytic investments that promote environmental restoration—such as coral reef conservation—and address ocean pollution. It also supports small and medium enterprises and nature-based solutions across island economies.
“This new fund will provide catalytic investment in projects, small and medium-sized enterprises and nature-based solutions in Small Island Development States,” said Outrigger Impact Managing Director Simon Dent. “These states steward over 30% of our oceans… their blue economies, ecosystems and sustainable marine assets are full of environmental, social and economic potential.”
Supporting EU Global Gateway Goals
This initiative also advances the European Union’s Global Gateway Investment Agenda, which aims to promote sustainable, climate-smart investments worldwide. The partnership between Luxembourg and EIB Global demonstrates a targeted deployment of public funds to mobilize private capital where it is needed most.
By pooling resources and aligning international development goals, the Outrigger Impact Fund I marks a significant step toward accelerating the blue economy transition in some of the world’s most climate-vulnerable regions.
Related Article: The Business Case for a Sustainable Blue Economy
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