Blue Alliance
Nature Transformation Fund • Indonesia
Restoring coral reefs and supporting coastal communities in Indonesia
Blue Alliance is developing the Blue Finance Impact Facility, a blended finance mechanism, to regenerate coral reef ecosystems and improve livelihoods in Indonesia’s Central Sulawesi Province. The facility will support the management of 16 Marine Protected Areas (MPAs) spanning 600,000 hectares of coral reefs and develop reef-positive businesses like ecotourism, aquaculture and sustainable fisheries. Financial sustainability of the MPAs will be ensured through dividends and revenue-sharing, with a versatile structure that combines grants, refundable grants, performance impact loans, and climate insurance solutions.
The Blue Alliance project stands out for its innovative approach to financing marine conservation and supporting local economies. The funding from NTF, will support the development of the Blue Finance Impact Facility, particularly by supporting essential preparatory activities that will make blue economy businesses investment-ready. With a successful track record in similar projects across Belize, Cabo Verde, and other regions, the initiative is well-positioned to scale and succeed in Indonesia. By linking revenue from reef-positive businesses to the management of MPAs, the project ensures long-term environmental and financial sustainability while directly benefiting 13,000 coastal community members.
Jill Raval
Milkywire Nature Lead
Innovative Finance
Innovative finance focuses on developing financial strategies to sustainably manage and preserve natural resources. It seeks to secure continuous funding and unlock extra resources for long-term environmental stewardship. Mechanisms like conservation finance and blended finance, harness economic incentives to support conservation efforts and generate financial benefits. Additionally, they encourage community participation and ownership.
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Innovative Finance
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