The philanthropy arm of asset manager UBS has provided an impact loan designed to enable the manager of a group of essential Marine Protected Areas (MPAs) in the Philippines to implement a number of revenue-generating initiatives, in what the parties say is a transformative deal for ocean conservation.
UBS Optimus Foundation will provide $500,000 up-front and early-stage blended capital to France-based Blue Finance, which manages several MPAs in the Philippines island state of North Oriental Mindoro along with the local government through the Blue Alliance, an NGO created by the French firm.
“This funding will allow Blue Alliance to enhance the management and protection of coral reef ecosystems, develop sustainable revenue mechanisms for the MPA network through reef-positive businesses in nature-based ecotourism, blue carbon credits from mangrove conservation, and small-scale aquaculture projects,” Blue Finance said in a press release.
That revenue will be used to pay back the impact loan and then become self-funded in the group’s efforts to protect and regenerate coral reefs, increase marine biodiversity, and enhance livelihoods.
While there are currently no specific plans for introducing biodiversity credit projects as part of the MPA funding base, that might change in the future, or at other Blue Finance projects.
“We are extremely interested in biodiversity credits. Currently, we are in the preparation stage with different partners, exploring opportunities to implement biodiversity credit projects,” a company spokesperson told Carbon Pulse.
A total of 12 MPAs have been established in the area, which includes the Verde Island Passage, a centre of marine shorefish biodiversity that supports more than 2 million people, according to Blue Finance.
The network protects around 70 km of coastline and 52 km2 of coastal marine ecosystems.
“This innovative approach is transformative for MPAs and is setting a precedent for impact investment in marine conservation and economic development globally,” said Nicolas Pascal, director and co-founder of Blue Finance.
“While more than 60% of coral reefs worldwide are under immediate threat, we have shown that MPAs are one of the best tools we have for protecting, conserving, and managing marine biodiversity. Successful MPAs are key contributors to a more climate change-resilient economy.”
The impact loan is the first the UBS Optimus Foundation awards to a marine initiative.
“We are strong proponents of [Blue Finance’s] holistic approach, which supports biodiversity and climate mitigation while improving the livelihoods of local communities,” said CEO Maya Ziswiler.
“Our impact loan to MPA projects in the Philippines showcases the financial viability of what will be a self-sustaining conservation model and highlights the impact potential of Blue finance’s approach.”
By Stian Reklev – stian@carbon-pulse.com
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