The Global Fund for Coral Reefs (GFCR) is a blended finance vehicle to protect and restore coral reefs through investing in and incubating solutions that alleviate pressure on the ocean ecosystem. It aims to achieve four outcomes:53
Protect priority coral reef sites and climate change resilient refugia
Transformation towards sustainable livelihoods of reef-dependent communities
Coral reef restoration and adaptation technologies
Recovery of coral reef-dependent communities to major shocks (e.g. large storms, health crises, etc.)
GFCR is the first UN Multi-Partner Trust Fund for SDG 14 (Life below Water). The blended fund consists out of a technical assistance facility ($125 million) managed by the UN Grant Administrator and an impact investing window ($375 million) managed by BNP Paribas and Mirova Natural Capital. Through its TA and impact investing window, the fund hopes to mobilize an additional $2-3 billion in public and private capital. Once established, GFCR is planning to invest in projects and companies aimed at improving (directly or indirectly) coral health and regeneration. These include marine protected areas (MPA), eco-tourism, sustainable fisheries, sustainable aquaculture, reef insurance, waste management, and access to clean energy. GFCR is planning to make grant, debt and equity investments in both established businesses and projects, as well as creating novel business solutions that address the target issues.54
53 ‘Global Fund for Coral Reefs’. n.d. Conservation Finance Alliance. Accessed 22 September 2020. https://www.conservationfinancealliance.org/gfcr.
54 ‘Global Fund for Coral Reefs - Terms of Reference 2020-2030’. 2020. Global Fund for Coral Reefs. https://static1.squarespace.com/static/57e1f17b37c58156a98f1ee4/t/5f2c14ff69efb66f5bbc96c8/ 1596724492425/TOR+Global+Fund+for+Coral+Reefs_+May+2020_Final.pdf.