1.8 million hectares of coral reef to receive new Blue Finance funding
Initial funding from the Blue Finance programme will be channelled into the regeneration of the reef systems across 115 Marine Protected Areas throughout Indonesia, the Philippines, Tanzania, and Cabo Verde.
Around 1.8 million hectares of coral reef ecosystems across Indonesia, the Philippines, Tanzania, and Cabo Verde will be among the first to benefit from a newly established impact loan from the Investment teams behind BNP Paribas and Blue Alliance Marine Protected Areas.
Initial funding from the Blue Finance facility – a new $35m impact loan facility designed to provide up-front and early-stage financing to reef positive businesses (RPBs) – will be channelled into the regeneration of the reef systems across 115 MPAs in the region.
Provided by BNP Paribas, a leader in sustainable finance and ethical banking, this initial $2.4m will also be used to directly improve the livelihoods and food security of some 110,000 local community members.
The structure of the Blue Finance programme relies on a blended approach in which philanthropic capital provided by long-term partners including the Global Fund for Coral Reefs (GFCR), co-led by the United Nations Capital Development Fund (UNCDF) and will work to support conservation efforts within the selected Marine Protected Areas (MPAs).
It’s hoped that it will also help design an overall framework for bringing additional private, impact-focused investors into the financing programme. As an initial investor, PNB Paribas has expressed its optimism that other investors will be quick to join the programme.
“We hope to attract additional investors alongside us to support the development of this innovative player that combines the protection of natural ecosystems and productive economic activities for local populations based on a responsible and ethical usage of the maritime ecosystem,” said Laurence Pessez, global head of CSR for the BNP Paribas Group.
A first of its kind for the international bank, this marine-focused impact performance loan “echoes its global commitment to protecting the ocean” while supporting PNB Paribas’ focus on a ‘just’ transition to renewable, clean energy while “leaving no one behind.”
It’s widely recognised that well-managed and financed MPAs are essential to global efforts to “replenish biodiversity and nourish the growing human population.” Such benefits of improved marine ecosystems include enhanced food supply and fishing incomes for coastal communities, opportunities for Blue Economy businesses, shoreline protection, and a greater resilience to climate change.
But despite their importance, 70% of the world’s 20,000 MPAs struggle to meet minimum management standards. This is largely due to insufficient or short-term-only funding which is provided mostly through public and philanthropic efforts.
Blue Alliance and BNP Paribas have therefore introduced the Blue Finance programme to bridge the gap in marine conservation financing, support the development of innovative, reef-positive businesses, and bolster the Blue Economy in and around the world’s MPAs.
“We are proud to support Blue Alliance to scale up their management of Marine Protected Areas in emerging markets and amplify their positive impact on coral reef ecosystems and local communities’ sustainable development,” added BNP’s Pessez.
The pipeline of reef-positive businesses captured within the scope includes: responsible ecotourism, community-based aquaculture, blue carbon credits, and sustainable fisheries. The inclusion of local communities within participatory management roles of such projects will form a “critical part of each.”
Pradeep Kurukulasuriya, executive secretary of UNCDF, added: “With the fourth mass global bleaching now hitting record-levels, bolstering the effectiveness of Marine Protected Areas (MPAs) is more critical than ever.
“As part of this effort, the Global Fund for Coral Reefs, co-led by the United Nations Capital Development Fund, is proud to have supported the design and issuance of early capital to operationalise the MPA impact loan facility established by Blue Alliance.
“Now unlocking private finance from partners including the BNP Paribas Group, this innovative vehicle is scaling reef-positive businesses to address local ecosystem threats that contribute to financing 30×30 ambitions.”
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