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Bahamas, Dominican Republic, Grenada, St. Lucia and St. Vincent and the Grenadines unite to strengthen blue economy and coastal and ocean management through innovative financing mechanisms.
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Coastal and marine resources – coral reefs, mangroves, seagrass beds, tidal marshes, and beaches – are critical economic drivers in the Caribbean.
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The USD 6 million initiative will leverage existing regional sustainable finance architecture in the Caribbean to support and showcase the value of blue economy and blue businesses.
The governments of the Bahamas, Dominican Republic, Grenada, St. Lucia and St. Vincent and the Grenadines joined forces to launch an initiative to enhance funding access for blue economy opportunities across the Caribbean through innovative financing.
Globally, the annual economic value for ocean-linked sectors, or the blue economy is estimated at USD 2.5 trillion – equivalent to the world’s 7th largest economy.
In the Caribbean alone, sustainably managed ocean resources have the potential to significantly reduce poverty for its population of over 40 million and contribute to international biodiversity obligations.
Despite this economic potential, the Caribbean’s marine and coastal ecosystems have been facing a steady decline – more than 50 per cent for Caribbean corals since the 1970s – largely due to the effects caused by human activities and local stressors.
Overfishing, unsustainable coastal development, marine and land pollution, and the ever-increasing impacts of climate change and other anthropogenic drivers hinder the growth of the Caribbean's blue economy.
In response, the UNEP-led ‘Caribbean Blue Economy Financing’ project – or Caribbean BluEFin, funded by the Global Environment Facility (GEF), aims to address these challenges by bring together a wide range of stakeholders from government and the private sector to explore innovative financing mechanisms to improve access to funds for sustainable blue economy initiatives in this region.
The initiative identifies insufficient financial resources allocated to conservation efforts for biodiversity, sustainable land use, ecosystem restoration, and climate change mitigation and adaptation as one of the root causes, for this continued decline.
Additionally, it recognises a lack of consideration for ecosystem goods and services in economic decisions, often treating them as public goods, along with low awareness and understanding of the environmental and economic benefits they provide as a second cause of the drop.
The USD 6 million initiative will develop at least three regional Caribbean Ocean finance mechanisms, expected to generate up to USD 600,000 yearly. These mechanisms will include conservation finance, climate finance and circular economy finance.
“In order to ensure the sustainability of the ocean economy,” said Isabelle Vanderbeck, UNEP Programme Management Officer, “sufficient ocean financing must be allocated towards the management and governance of the ocean and its resources.”
“Governments must work with the private sector to not only catalyse private sector capital but also to create an enabling environment by putting in place policies, regulations, and incentives for blue investments.” she added.
The initiative will leverage upon the experience and innovation of the existing Caribbean Sustainable Finance Architecture which is the first of its kind in the world to develop over 10 Environmental Funds in the implementation and delivery of the financial mechanisms.
NOTES TO EDITORS
About the Global Environment Facility
The Global Environment Facility (GEF) is a multilateral fund dedicated to confronting biodiversity loss, climate change, pollution, and strains on land and ocean health. Its grants, blended financing, and policy support helps developing countries address their biggest environmental priorities and adhere to international environmental conventions. Over the past three decades, the GEF has provided more than US$24 billion in financing and mobilized another US$138 billion for more than 5,700 national and regional projects.
About the UN Environment Programme
UNEP is the leading global voice on the environment. It provides leadership and encourages partnership in caring for the environment by inspiring, informing and enabling nations and peoples to improve their quality of life without compromising that of future generations.
For more information, please contact:
Samwel Adawo samwel.adawo@un.org – Communications Specialist, UNEP-GEF International Waters
