Our Blue Finance Facility

The First Impact Loan Facility for Coral Reef Conservation

This facility supports Marine Protected Areas (MPAs) in regenerating coral reef biodiversity and improving food security for coastal communities, and builds innovative Blue Economy reef-positive enterprises around these protected areas. These businesses help alleviate poverty and generate long-term income for our stakeholders.

Investment Theory

The first impact loan facility transforms protected areas and livelihoods through investment in Blue Economy social enterprises.

Why?

Marine Protected Areas are among our most effective tools for regenerating the planet’s marine biodiversity and developing viable revenue streams to support vulnerable coastal communities. Our MPAs are organised into networks, with each network requiring an average of USD 600,000 per year for effective management.

How?

We establish reef-positive businesses around the MPAs in sectors such as responsible ecotourism, community-based aquaculture, blue carbon credits and sustainable fisheries. Each business helps to address drivers of coral reef ecosystem degradation, alleviate poverty and food insecurity in local communities, and contributes financially to MPA management through either dividends or revenue sharing, or a combination of both.

Our Pipeline of
Reef-Positive Businesses

Ecotourism

Creating innovative, responsible, and educational travel offerings through our wildlife ecotourism division BlueWild EcoVentures.

Community-based Aquaculture

Working with partners and communities to develop and grow responsible, community-based aquaculture facilities.

Blue Carbon

Initiating blue carbon credit projects through collaborative mangrove protection and conservation programmes.

Plastic Recycling

Collaborating with expert partners on innovative plastic collection and recycling programmes.

Fishery-supply chain improvement

Implementing sustainable fishing practices around MPAs, increasing revenues for coastal fishers, and reducing fishing pressure on vulnerable species through fishery-supply chain improvement projects.

The Blended Finance Approach

We combine grants with the Blue Finance impact loan facility. Grants fund the management of MPAs until they can be supplanted by income from reef-positive businesses. The impact loan facility provides initial working capital and equipment for these businesses.

What Our Partners Say

“

We are proud to support Blue Alliance as they scale up their management of Marine Protected Areas in emerging markets and amplify their positive impact on coral reef ecosystems and the sustainable development of local communities. This innovative, impact-linked facility was structured and financed by our impact investing team through our own account impact envelope, co-managed by Group CSR and BNP Paribas Asset Management. Our goal is to attract additional investors to join us in supporting the development of this innovative mechanism that combines the protection of natural ecosystems and productive economic activities for local populations, all based on the responsible and ethical use of marine ecosystems. This first BNP Paribas marine-focused impact performance loan reflects the bank’s global commitment to protecting the ocean and support a Just Transition.”

– Laurence Pessez, Global Head of CSR for the BNP Paribas Group

”

“

With the fourth mass global coral bleaching event 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 (UNCDF), is proud to have supported the design and issuance of early capital to operationalise the MPA impact loan facility established by Blue Alliance. Through unlocking private finance from partners including the BNP Paribas Group, this innovative finance vehicle is scaling reef-positive businesses to address local ecosystem threats and contribute to financing 30×30 ambitions.

– Laurence Pessez, Global Head of CSR for the BNP Paribas Group

”

Anchor Investors:

Anchor Donors:

Partner With Us

We continue to seek like-minded partners. By collaborating with us, you can show your support for the regeneration of 1.8 million hectares of vibrant coral reef ecosystems in 115 MPAs across Indonesia, the Philippines, Tanzania, and Cabo Verde, and directly improve livelihoods and food security for some 110,000 local community members.

Benefits of the Impact Loan Facility

Simplifies the investment process for investors through a unified, streamlined due diligence process and access to a portfolio of projects that share common impact metrics.
Improves project design and execution.
Creates efficiency and economies of scale through aggregation.
Reduces investment risk through geographical spread and diversification across revenue models.
Increases liquidity for investors through potential transfer of some debt to other investors.
Reduces financial burden for the MPAs (blending impact capital with different return profiles).
Increases transparency and facilitates impact monitoring.

Together, we are transforming protected areas and empowering communities through investment in reef-positive Blue Economy businesses.

Environmental, Social, and Governance (ESG)

For each business, we conduct an Environmental & Social Due Diligence (ESDD) study. The following standards form the reference framework for our ESDD studies:

Blue Finance Environmental & Social Safeguards Policy
Applicable local, national and international environmental and social (including health and safety) laws, regulations and standards (including fully ratified international conventions)
International Finance Corporation (IFC) Performance Standards (PS) (2012)
Applicable World Bank Group (WBG) Environmental, Health & Safety (EHS) Guidelines
General EHS Guidelines (2007)
EHS Guidelines for Aquaculture (2007)
World Travel & Tourism Council – Nature Positive Tourism Roadmap (2022)
Secretariat of the Convention on Biological Diversity – Guidelines on Biodiversity and Tourism Development (2004)

Key Performance Indicators (KPIs)

focused on coral reef ecosystem recovery, protection of endangered species, livelihood enhancement and sustainable enterprises, equity improvement and the creation of new MPA jobs. KPIs and monitoring will follow the Global Fund for Coral Reef Monitoring & Evaluation guidelines, as well as international best practice impact measurement standards (GIIN, IUCN, ORRAA, IFC, SOCMON, METT). Where possible, they will be verified by independent external partners.