By RISE UP 

The Urgency of Ocean Finance

Coastal regions support the livelihoods of millions worldwide, particularly in small island nations and fishing-dependent economies. However, these communities are increasingly vulnerable to worsening climate impacts. In 2024, insured losses from natural disasters reached $140 billion, one of the costliest years on record, driven by powerful hurricanes, severe storms, and extreme flooding, particularly in North America and Europe, amid the hottest global temperatures ever recorded. Meanwhile, habitat loss, driven by overfishing, pollution, and industrial exploitation, threatens the ecosystems that sustain fisheries and protect shorelines.

Despite this, global financial flows remain disproportionately focused on terrestrial solutions.  While more than $1 trillion flowed into green and sustainability-linked bonds in 2023, only a fraction of that funding was directed toward coastal and ocean regeneration and resilience.

Bridging the Ocean Finance Gap

The global ocean plays a crucial role in regulating climate, providing food security, and sustaining the livelihoods of millions. Yet, investments in ocean regeneration and resilience remain significantly below what is needed. The ocean sector is vastly underfunded, with an annual requirement of $175 billion to protect it, yet only $30 billion has been allocated since 2010. Closing this funding gap is imperative to safeguarding both coastal ecosystems and the communities that depend on them.

Public financing alone cannot meet the scale of the challenge. Greater collaboration between governments, financial institutions, and local organizations is necessary to develop innovative funding mechanisms that drive sustainable, equitable solutions. This must be done collaboratively, with the voices of those most affected at the forefront. By leveraging public-private partnerships, investments can be directed to the communities that need them most, particularly in Small Island Developing States (SIDS) and regions where small-scale fisheries are central to food and economic security.

Prioritizing Community-Led Solutions

A resilient ocean economy must be built with and for the communities that depend on it. Too often, large-scale financial initiatives overlook the needs of local communities and their traditional knowledge, resulting in policies that fail to address the unique challenges and priorities of these communities.

Mangrove restoration is a powerful example of a community-led initiative that delivers multiple benefits. Mangroves are vital for sustaining fisheries, protecting coastal ecosystems, and providing natural storm surge defense. They also act as carbon sinks, support marine biodiversity, and improve the livelihoods of coastal communities. Yet, despite their importance, mangroves receive only about 1% of climate finance.

The Mangrove Breakthrough aims to accelerate global action and investment to protect and restore mangroves. By 2030, the goal is to secure over 15 million hectares of mangroves with $4 billion in sustainable finance. This initiative aligns with key global agreements like the Paris Agreement and the UN Decade on Ecosystem Restoration.

By focusing financial investments on mangrove restoration, Indigenous and coastal communities are empowered to lead decision-making, vital habitats are revived, and long-term benefits are secured for both the environment and local economies.

Climate Finance Commitments

At the end of 2024, during COP29, negotiators agreed on a $300 billion annual target for developing nations by 2035 under the New Collective Quantified Goal  (NCQG), a step forward, but far below what is needed. To address this gap, the ‘Baku to Belem Roadmap to $1.3 Trillion’ was launched, providing a clear pathway for scaling up ambition in the years ahead. Meanwhile, the launch of Cali Fund and agreement on permanent financing mechanisms for biodiversity protection at COP16 underscored the need for sustained investment in conservation, particularly for coastal and Indigenous communities.

The Road Ahead: UNOC and the Blue Economy & Finance Forum

The upcoming UN Ocean Conference (UNOC) in France and the Blue Economy and Finance Forum in Monaco present key opportunities to push for stronger financial commitments toward ocean resilience. These global convenings can serve as catalysts for unlocking large-scale investments in ocean conservation, ensuring that financial flows align with the priorities of coastal communities and small-scale fishers.

To build truly resilient coastal economies, decision-makers must integrate climate risks into every investment and policy decision. This includes supporting policies that promote preferential access for small-scale fishers, ensuring equitable distribution of ocean resources, and safeguarding marine ecosystems from destructive industries such as deep-sea mining.

Aligning Finance with Ocean Justice

At RISE UP, we believe that financial mechanisms should not only address environmental concerns but also promote justice for communities that rely on the ocean. This means advocating for financing models that respect human rights, uphold Indigenous sovereignty, and directly benefit those on the frontlines of climate change.

Karen Sack, an advisor at RISE UP, recently wrote a powerful piece for Project Syndicate highlighting the urgent need for coordinated investment in ocean resilience. Her insights reinforce the importance of integrating ocean finance into global biodiversity and climate strategies.

Now more than ever, the global community must align financial flows with ocean resilience and community well-being. The future of coastal communities, and the planet, depends on it.

Learn more: Read Karen Sack’s article on the need for coordinated investment in ocean resilience here and join the conversation on how we can drive equitable financing for our ocean’s future.