Key Impact Points:
- USD 35m Impact Loan Facility: Blue Finance aims to support 115 Marine Protected Areas (MPAs) across four countries with an initial funding of USD 2.4m from BNP Paribas.
- Community Benefits: The initiative will directly improve livelihoods and food security for 110,000 people while regenerating 1.8 million hectares of coral reefs.
- Blended Finance Approach: The facility blends philanthropic and private investments to attract impact-focused investors and scale reef-positive businesses.
Blue Alliance Marine Protected Areas (BA) and BNP Paribas have announced the launch of Blue Finance, a USD 35 million impact loan facility designed to support reef-positive businesses and accelerate the growth of the Blue Economy within Marine Protected Areas (MPAs). This innovative financial facility, which leverages a blended finance approach, will initially target 115 MPAs across Indonesia, the Philippines, Tanzania, and Cabo Verde, helping to regenerate 1.8 million hectares of coral reef ecosystems while improving the livelihoods and food security of 110,000 community members.
Supporting the Blue Economy with Reef-Positive Businesses
With an initial funding commitment of USD 2.4 million from BNP Paribas, the Blue Finance facility provides early-stage impact financing to reef-positive businesses (RPBs). These businesses play a critical role in reducing the drivers of coral reef degradation while boosting economic opportunities for local communities. The targeted pipeline of businesses includes responsible ecotourism, community-based aquaculture, blue carbon credits, and sustainable fisheries. By generating financial returns, these businesses contribute to the long-term management and success of MPAs.
Nicolas Pascal, Executive Director of Blue Alliance, explained, “The success of reef-positive businesses around MPAs depends on having a viable business model, a multi-stakeholder approach, and clear performance indicators for social and environmental impact. These components are essential for scaling sustainable marine conservation efforts.”
A Blended Finance Model for Marine Conservation
The Blue Finance facility is structured using a blended finance model, where philanthropic capital from partners like the Global Fund for Coral Reefs (GFCR), co-led by the United Nations Capital Development Fund (UNCDF), helps attract private investments. BNP Paribas is the first investor, with the facility aiming to raise up to USD 35 million by welcoming additional co-investors. The facility offers patient capital with long-term maturity and performance-linked interest rates that reward businesses for achieving social and environmental targets.
Why Marine Protected Areas Matter
MPAs are vital for biodiversity conservation, providing essential ecosystem services such as shoreline protection, enhanced food supply, and greater climate resilience for coastal communities. Yet, 70% of the 20,000 MPAs globally struggle to meet minimum management standards due to fragmented and short-term funding. Blue Finance aims to address this challenge by providing sustainable financing for day-to-day operations, monitoring, staffing, and equipment required to ensure long-term success.
“BNP Paribas is proud to support Blue Alliance’s efforts in scaling Marine Protected Areas in emerging markets,” said Laurence Pessez, Global Head of CSR for BNP Paribas. “This innovative impact-linked facility not only enhances the resilience of coral reef ecosystems but also strengthens sustainable development within local communities. We believe this is a critical step in the global commitment to a Just Transition and ocean protection.”
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Scaling Coral Reef Conservation Efforts
As global coral bleaching reaches record levels, the effectiveness of MPAs is more critical than ever. By unlocking private finance and combining it with philanthropic efforts, the Blue Finance facility provides an innovative solution to address local ecosystem threats and meet the 30×30 global conservation target, which aims to protect 30% of the planet’s land and sea by 2030.
Pradeep Kurukulasuriya, Executive Secretary of UNCDF, added, “The Global Fund for Coral Reefs is proud to have supported the design and early financing of this impact loan facility. Scaling reef-positive businesses to address local threats to coral reefs will play a crucial role in achieving global conservation goals.”
The Blue Finance facility represents a powerful collaboration between public and private sectors, showing that sustainable development and economic progress can go hand in hand. With this innovative approach, Blue Alliance and BNP Paribas are laying the groundwork for a bluer, more sustainable future for coastal communities and marine ecosystems alike.
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