Overview
The Blue Finance Blended Finance facility, launched with initial commitments from BNP Paribas, UBS Optimus Foundation, and Global Fund for Coral Reefs, is a USD 65 million blended facility that will support 2,000,000 ha Marine Protected Areas (MPAs) across Sub-Saharan Africa and Southeast Asia. The facility will enhance MPAs operations and develop reef-positive businesses in the Blue Economy that alleviate poverty and generate long-term income for MPAs. Sectors include community-based aquaculture, ecotourism, sustainable fisheries, and blue carbon projects.
Problem
Marine ecosystems are under increasing threat from climate change, overfishing, and pollution, leading to the degradation of biodiversity and loss of essential livelihoods for coastal communities. While MPAs play a crucial role in preserving marine biodiversity, they often face funding challenges, making it difficult to sustain their operations. Additionally, blue economy businesses, such as ecotourism and aquaculture, typically lack access to affordable capital, preventing them from scaling and generating sustained socioeconomic and environmental benefits.
Solution
Blue Alliance addresses these issues by creating a holistic financing model that supports both marine conservation and economic development. The vehicle provides grants to cover the operational expenses of MPAs, ensuring their continued effectiveness while also providing impact debt capital to social enterprises that alleviate poverty and generate sustainable revenue streams for MPAs. Profits from these businesses are reinvested into MPA management, creating a self-sustaining model that supports biodiversity preservation and improves local livelihoods.
CC Facility Support
The CC Facility is supporting Blue Alliance in refining its financing structure, enabling it to scale and attract new capital. This includes guidance on structuring, gender strategy development, and investor engagement. Additionally, the CC Facility is assisting Blue Alliance with its go-to-market strategy, financial modeling, and fundraising efforts, ensuring the vehicle can replicate its model across multiple regions and achieve long-term sustainability for MPAs and reef-positive enterprises.
Website
Blue Alliance - https://bluealliance.earth/