Global Coral Reef Fund announces additional $25 million in funding to protect coral reefs

Board of Directors Global Fund for Coral Reefs (GFCR) has announced more than $25 million in additional funding to spur “restoration action” across coral reef nations. GFCR’s latest efforts include a new program called the Egypt Red Sea Initiative, funded by the United States Agency for International Development (USAID) and created through a partnership with the Government of Egypt, the United Nations Development Programme (UNDP), international and local organizations, private and nonprofit donors and investors. According to a UNEP press release (see below), the initiative will “leverage up to US$50 million in public and private funding for sustainable blue economic transition and conservation efforts” in the Red Sea.

Increased GFCR funding was also announced for Indonesia, the Philippines, Zanzibar’s Pemba Island, and the Central American Region (MAR)—which includes Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama, in addition to nine southeastern states of Mexico. The GFCR Alliance is a public-private partnership driven by more than 50 member countries, United Nations agencies, financial institutions, philanthropies, impact investors, and conservation organizations.

Learn more about the new initiatives in the press release below.

PRESS RELEASE

Global Fund to Protect Coral Reefs Approves More Than $25 Million in Additional Funding for Restoration

Geneva, July 10, 2024 – In the face of growing threats to coral ecosystems and the recent announcement of the fourth global coral bleaching event, the Global Fund for Coral Reefs (GFCR) Board of Directors has announced more than $25 million in additional funding to scale up restoration efforts across coral reef countries. The announcements include a new blended finance program for Egypt’s Red Sea, funded by the United States Agency for International Development (USAID).

“Without collective action at speed and scale, scientists estimate that 90% of remaining coral reefs could be lost by 2050, with catastrophic consequences for the communities and economies they support. To address this crisis, the GFCR Alliance has built a robust portfolio of innovative, market-driven solutions spanning 23 countries to protect critical coral reef sanctuaries – the Earth’s most resilient coral reef ecosystems,” said Peter Bryant, Oceans Program Director at the Builders Initiative and GFCR Executive Board Member. “The new GFCR announcements, representing an increase of more than $25 million in resilience-based efforts, will support the sustainable green transition of local economies and unlock more conservation funding for future generations.”

A new GFCR program, the Egypt Red Sea Initiative, aims to enhance protection of one of the world’s oldest and most resilient coral reef ecosystems. Backed by a major funding commitment from USAID, the initiative, in partnership with the Government of Egypt and the United Nations Development Programme (UNDP), will establish the Egypt Fund for Coral Reefs to mobilize up to US$50 million in public and private funding for sustainable blue economy transitions and conservation efforts. Additional market-based solutions will be supported by a coral reef business incubator, including recycling organic waste for coastal farming, aquaculture to support ecosystem restoration, and mooring systems to avoid reef-related damage from shipping.

“The Egypt Red Sea Initiative is a groundbreaking blended finance partnership to conserve Egypt’s coral reefs. USAID, in partnership with the Government of Egypt, international and local organizations, private and nonprofit donors and investors, is committed to protecting the Red Sea’s vital ecosystem and the communities it supports, while promoting economic growth and sustainable development for the Egyptian people,” said Sean Jones, Mission Director, USAID Egypt.

New announcements from the GFCR Executive Board also include increased funding for the Central America Region (MAR), country programs in Indonesia and the Philippines, as well as an initiative in Pemba Island, Zanzibar.

In the Philippines, home to the world’s third largest coral reef area, a GFCR-supported program led by Blue Alliance Marine Protected Areas has unlocked funding from catalyst donors and impact investors to operationalize the Marine Protected Area (MPA) Impact Loan Facility. The new GFCR funding will scale up implementation to cover more than 100 MPAs covering 80,000 hectares of significant coral conservation and increase the resilience of more than two million members of coastal communities. The increased funding will expand reef-positive business solutions including ecotourism, community-based aquaculture, and sustainable fisheries, which are embedded in the program’s MPA funding strategy.

In Indonesia, located in the heart of the Coral Triangle, additional support from GFCR will help ensure long-term sustainable funding for effective MPA management and access to finance for reef-positive businesses. With a focus on supporting local women, this additional funding is aimed at facilitating the development of at least 10 additional reef-positive businesses, including community-managed seaweed hatcheries and processing facilities, ecotourism projects and sustainable aquaculture.

“Innovation to support the acceleration and scaling of models in effective MPA management that involve positive coral business practices is critical to supporting Indonesia’s Blue Economy vision. Our vision is based on protecting coastal and marine ecosystems, providing food security, livelihoods for communities, and supporting national development,” said Meizani Irmadhiany, Senior Vice President and Executive Chairman of Konservasi Indonesia. “GFCR’s support provides catalytic funding to enhance effective MPA management and funding flows, creating innovative models to scale up impact through support in areas such as responsible tourism, seaweed development and fisheries, and encouraging long-term protection of critical coral reef habitats.”

In MAR, home to the largest barrier reef in the Western Hemisphere, GFCR is funding the MAR+Invest program to contribute to reef and community restoration through blended finance and address local drivers of ecosystem degradation such as increased pressure from increased tourism, seaweed development, and expanding agriculture and aquaculture.

Now in its second phase, MAR+Invest partners are expanding the regional portfolio of market-based solutions – including ecotourism, sustainable aquaculture, seaweed management, and the expansion of circular economy activities – in Belize, Guatemala, Honduras, and Mexico. These solutions are critical to achieving the program’s 2030 goals: 60,000 hectares of better-managed coral reefs; three million more resilient communities; and $60 million mobilized from public and private sources.

“The Global Fund for Coral Reefs has played a pivotal role in supporting MAR+Invest’s transformational efforts to protect coral reefs and the communities that depend on them in the Mesoamerican Reef Region. By addressing critical funding gaps and promoting innovative market solutions, MAR+Invest aims to protect these vital ecosystems while enhancing the livelihoods of local people,” said María José González, CEO of the Mesoamerican Reef Protection Fund. “We would like to extend our sincere thanks to the GFCR for their invaluable support in developing a regional blended finance mechanism. This initiative leverages market solutions to generate revenue and positively impact the health of our coral reefs, promoting sustainable development and enhancing the resilience and well-being of the Atlantic’s largest coral reef.”

New funding was also announced for a Blue Alliance-led initiative on Pemba Island, Zanzibar, which is home to 50% of Tanzania’s coral reefs and countless vulnerable marine species. The North Pemba Channel Protected Area Blended Finance Programme leverages locally-led businesses to protect coral reefs and promote inclusive prosperity. The initiative will enable the development of seven reef-positive business solutions, contributing to the sustainable financing and management of 27,000 hectares of marine protected area. The programme’s 2030 targets include the regeneration of approximately 4,200 hectares of coral reef, supporting the livelihoods of at least 15,000 fishermen and coastal communities, and a minimum of US$15 million in funding from commercial impact investors through the programme’s blended impact finance facility.

“Mobilizing US$25 million to scale up restoration efforts across coral reef countries is an incredible step forward, especially with the new program launched in Egypt’s Red Sea. I visited the Red Sea and Ras Mohammed National Park in October 2022 with UNEP Goodwill Ambassador Ellie Goulding in preparation for COP27 in Sharm el-Sheikh. The experience of seeing such a healthy reef was a defining and moving moment for all of us, knowing that it will almost certainly disappear if we do not invest in the resilience of this ecosystem and others like it,” said Leticia Carvalho, Head of the Marine and Freshwater Division of the United Nations Environment Programme (UNEP) and Co-Chair of the GFCR Executive Board.

“As we approach the 2025 UN Ocean Conference, we must wake up to the urgency and recognize what is at stake: the functional extinction of entire ecosystems. And the opportunity to be the first generation to save an ecosystem. Urgent and large-scale collective action is needed,” she added.

As the leading global coral finance tool, GFCR aims to enhance the protection and restoration of at least three million hectares of coral reefs globally by 2030—representing 25 percent of the reef breakthrough target and approximately 12 percent of the world’s remaining coral reefs. At full capitalization, the GFCR Alliance will aim to mobilize up to $3 billion in public and private finance for the benefit of marine ecosystems, coastal communities, and economies.