WWF-UK
An innovative investment model designed to scale sustainable marine protection and strengthen coastal livelihoods across the Global South.
Key Details
Project Lead: Blue Alliance Marine Protected Areas
Financial Innovation: Funds
Supporting partners: Governments of Indonesia, Philippines, and Tanzania, alongside AXA Climate, BNP PARIBAS, Blue Natural Capital Finance Facility (BNCFF), Foundation Hans Wildorf, Global Eba Fund, Global Fund for Coral Reefs, Howden Group, Mirova Natural Capital, Mirova Nature+, MAVA Foundation, UBS Optimus Foundation and UN Capital Development Fund
Financial Support: Government of Canada
Location: The Bahamas, Belize, Cabo Verde, Dominican Republic, Fiji, Indonesia, Mozambique, Philippines and Tanzania
Project Timeline: Completed (2023-2024)
People Supported: 16,545
Investment Leveraged: USD$3.5 million
Area Conserved: 170,000 ha
Summary
ORRAA is working with Blue Alliance to structure a blended finance facility that supports sustainable revenue-generating initiatives in marine protected areas (MPAs). These initiatives are protecting over 1 million hectares of high-biodiverse coral reefs while strengthening the local economy, including in coastal fishing communities.
The initial phase was focused on Indonesia, the Philippines, and Tanzania to manage 1.5 million hectares of MPAs and develop a portfolio of reef-positive businesses. In parallel, the project is laying the groundwork for new MPA financing mechanisms in Belize, Bahamas, Cabo Verde, Dominican Republic, Fiji, and Mozambique.
Challenge
Coral reefs are vital to the lives of around 500 million people who depend on them for food, jobs, and protection. But these ecosystems are in danger – 60% are under immediate threat from climate change and human activity. One proven way to protect them is through Marine Protected Areas (MPAs), which help restore reef health, support local fisheries, boost tourism, and build resilience to climate impacts.
However, most MPAs around the world struggle to function effectively. Nearly 70% don’t meet minimum management standards due to fragmented, insufficient and short-term funding. To close this gap, blended finance – combining public and private funding – offers a promising path to bring in additional funds from impact investors.
Solution
With support from ORRAA, Blue Alliance is building a blended finance facility to provide up-front and early-stage capital for 10 sustainable large MPAs in the Global South. The initiative is looking to invest over USD$22 million in grants, impact loans, loan guarantees, and innovative insurance solutions. By generating revenue from sources like community-based aquaculture, sustainable fishery, ecotourism and blue carbon – the vehicle will deliver returns for investors, measurable impact for donors and effective management and financial sustainability for the MPAs.
Scalability and Next Steps
Blue Alliance’s finance facility is designed for scale, with a large pipeline of MPAs already identified in some of the world’s most biodiverse areas.
In its initial phase (2022-2023), the vehicle invested in three large MPAs managing 1.5 million hectares, in Indonesia, the Philippines and Tanzania, where Blue Alliance and its partners have been working since 2019.
With strong government support and proven, replicable business models in sectors like aquaculture, ecotourism, sustainable fisheries, and blue carbon, the next phase will focus on creating and managing portfolios of social enterprises around each MPA. These models will generate sustainable revenue streams while delivering long-term conservation and community benefits at scale.
“Generating critical finance for MPAs is vital for marine conservation and natural resource management.” – Valdemar Andrade, Executive Director, Turneffe Atoll Sustainability Association (TASA).
