The Executive Board of the Global Fund for Coral Reefs (GFCR) has endorsed an Investment Plan, developed by the CFA, which presents the overall investment philosophy, strategy and principles of this blended finance vehicle.

Download the Investment Plan below.

Over the last 30 years, the world has lost half of its coral reefs: battered by over-fishing, pollution, and unsustainable coastal development, coral reefs are now at the frontline of climate change. These reefs, which only cover 0.2% of ocean surface, host 30% of marine biodiversity.

Without urgent action and rapid mobilization of resources, coral reefs may face extinction within the next 30 years. The global annual value of coral reefs and associated ecosystems has been estimated between US$ 375B and US$ 2.7T, yet the current funding levels needed to save them from climate change and other threats are at least seven times too small.

To protect these ecosystems and unleash their potential, the Global Fund for Coral Reefs (GFCR or the Fund) will serve as a blended finance vehicle leveraging grants, debt and other financial instruments to facilitate private return-based investments for coral reef conservation and resilience. The Fund will support businesses and finance mechanisms that improve the health and sustainability of coral reefs and associated ecosystems, while empowering local communities and enterprises. 

The GFCR seeks to invest 625 million USD in coral reef conservation over a 10 year window (2020 - 2030)

Visit the official website of the Global Fund for Coral Reefs

Details on the GFCR can be found in the document links below:

GFCR - Brochure

GFCR - Terms of Reference

GFCR - Theory of Change

GFCR’s REEF+ Accelerator - for Knowledge and Finance is launching in December 2022.

Background

Partners

The Global Fund for Coral Reefs will serve as a blended finance vehicle leveraging grants, debt and other financial instruments to facilitate private return-based investments for coral reef conservation and resilience.

The GFCR is being built around an innovative and growing partnership among:

·        Private philanthropy – Paul G. Allen Family Foundation, Prince Albert II of Monaco Foundation

·        Financial Institutions – BNP Paribas, Pegasus Capital Advisors

·        United Nations’ agencies – UNDP, UNEP, UNCDF

· Member States - Germany

The Fund will support interventions and business models that achieve the following four outcomes:

Outcome 1: Protect priority coral reef sites and climate change resilient refugia

Outcome 2: Transformation towards sustainable livelihoods of reef-dependent communities

Outcome 3: Coral reef restoration and adaptation technologies

Outcome 4: Recovery of coral reef-dependent communities to major shocks (e.g. large storms, health crises, etc.)

The GFCR is supported by the Conservation Finance Alliance (CFA), who are developing an Investment Plan (the Plan) for the Fund. The Investment Plan provides practical approaches that build on a strategic vision uniting conservation and sustainable finance goals for coral reef ecosystem conservation, recovery, and resilience as well as transforming sustainable livelihoods.  The Plan will include geographic priorities, a portfolio of specific and emerging “coral reef positive” business models and financial instruments, and an initial implementation plan to launch the Fund’s activities.

Business Models and Finance

The Investment Plan assesses essential data on existing key actors, businesses, financial instruments, and funding sources to better understand how these business models and instruments can generate revenue, address drivers of coral reef degradation while empowering local communities.

The Investment Plan expands on a wide range of actors including but not limited to the following areas that interact with coral reef ecosystems:

Site Selection Request for Information

The Investment Plan identifies eco-geographic coral reef areas within countries that are large enough to address main threats and opportunities yet targeted enough to assure the GFCR’s impact will be significant, manageable and measurable. At selected sites the Fund will concentrate its efforts to protect, transform, and restore coral reefs while providing socio-economic opportunities to the communities that rely on those coral reefs for subsistence, income, coastal protection and more.

The GFCR site selection process seeks to identify ‘focal areas’ to concentrate its interventions. ‘Focal areas’ are defined as geographic units of operation where one or multiple investments could occur targeting the Fund's objectives. A focal area could contain no, one or multiple MPAs and multiple coral reefs and it is unified either ecologically (i.e. biological corridor, reef systems) or administratively (i.e. province, municipality).

The RFI process looked to gather information about the following for coral reef focal areas:

• Coral ecosystem resilience –Highest chance of resilience in the face of climate change

• Biodiversity value – High diversity and species richness in the coral reef ecosystem

• Site Readiness / Capacity – Presence or potential of operational and technical capacity to develop and implement successful business-oriented solutions

• National Priorities / Political Alignment – Clear alignment of GFCR mission and approach with national, regional and local government priorities and actions

• Ecosystem Service Values – Sites with high ecosystem service benefits to human populations

• Monitoring and Evaluation Potential – clear solutions must be presented for extremely remote sites

• Sites of Significant Heritage - Cultural and Social Importance

• Beneficiaries, challenges, opportunities, risks etc.