First Executive Board Decisions Demonstrate Blended Financing Principles
[New York, March 10th 2021] – The first round of funding approved by the Global Fund for Coral Reefs (GFCR) covers proposals from six countries including a USD $4.7M proposal led by the UN Fiji Country Office, “Investing in Coral Reefs and the Blue Economy.” The Fiji joint programme will receive an initial 2021 disbursement of US$1M along with UN Joint SDG Fund co-financing of US$5.3M awarded in February of this year. The programme leverages philanthropic and development finance to mobilize commercial investments and promote the financial sustainability of coral reef conservation and reef-positive livelihoods.
“Building reef resilience protects a sustainable source of food and livelihoods for the Fijian people and a vibrant hub of biodiversity for the world,” said Aiyaz Sayed-Khaiyum, Attorning General and Minister for Economy, Fiji. “We hope this innovative financing initiative offers a scalable model that can support the conservation of marine ecosystems across our globally connected blue economy.”
Principal transactions of the programme establish a locally managed Technical Assistance Facility to incubate a pipeline of reef-positive business models and institute Special Purpose Entities (SPEs) with revenue streams to manage Fijian Locally Managed Marine Area networks. The joint programme will also support a new initiative to source sugar cane plantations with a non-synthetic fertiliser and paired with educational programmes to reduce agricultural run-off and erosion harmful to nearby coral reefs.
Additionally, the GFCR is supporting the development of a new sanitary landfill with a network of transfer stations to improve waste collection and prevent leaching of harmful pollutants that are detrimental to Fijian mangroves and coral reef ecosystems. This joint programme is a collaboration with partners that include UN agencies (UNDP, UNCDF, UNEP), the WWF-Pacific, Matanataki, Blue Finance, Fijian local actors and the Government of Fiji and aims to leverage US$50M in investment capital by 2030.
“The pilot investments of the Global Fund for Coral Reefs and Joint SDG Fund in Fiji will bring positive impacts not only to reef systems but to the people who depend on them,” said Jodi Smith, Partner at Matanataki. “During a time of extreme economic and climatic uncertainty, this investment will pave the way for world class solutions and new manufacturing and income opportunities, while at the same time enabling active stewardship of the environment.”