Blue Catalyst Fund

Fair Carbon

Blue Catalyst Fund

Developing impactful blue carbon projects and unlocking sustainable finance for thriving coastal ecosystems and resilient communities

Geneva, Switzerland

CHE

Nonprofit

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Coastal and marine ecosystems—mangroves, tidal marshes, and seagrasses—are crucial for climate regulation, biodiversity, and supporting the livelihoods of coastal communities. They store up to 10 times more carbon per hectare than terrestrial forests, provide $65 billion annually in storm protection, and underpin 80% of the global fish catch. Yet, these ecosystems are disappearing rapidly due to human activity and climate change, with up to 50% already lost. Mangrove degradation alone emits 440 million tons of CO₂ annually, contributing 10% of global deforestation-related emissions. Without intervention, all remaining mangroves could vanish within a century. Despite their importance, they receive minimal investment. The voluntary carbon market, forecast to grow from $2 billion in 2020 to $250 billion by 2050, offers potential for financing, but Blue Carbon projects make up only 0.2% of the market. Just 12 projects exist compared to over 600 land-based ones. Several barriers are holding Blue Carbon back. On the supply side, there is a lack of investable pipeline due to technical expertise, high development costs, and limited early-stage funding, which hinders project development. On the demand side, committed capital remains low due to high due diligence costs, regulatory complexity, and perceived investment risks.

The Blue Catalyst Fund offers a structured, end-to-end program designed to de-risk, finance, and scale high-integrity Blue Carbon projects, addressing the core challenges that existing solutions often fail to resolve. Unlike most accelerators that provide short-term, generic support, our approach is tailored to the complexities of Blue Carbon project development. We provide milestone-based catalytic funding, expert guidance, and deep capacity building to strengthen local ownership and ensure projects meet the highest quality standards. Our model addresses common market failures, including the over-reliance on external consultants with limited Blue Carbon expertise and a lack of support in securing and negotiating follow-on investment. Funding is recoverable only upon success, aligning incentives around long-term viability and high-quality outcomes. Every dollar of donor capital has the potential to be recycled, creating a self-sustaining model that reduces dependence on continuous donor funding while ensuring ongoing support for new projects. By de-risking the early stages, building technical and institutional capacity, and unlocking private capital, the Blue Catalyst Fund creates a more efficient, fair, and scalable pathway for Blue Carbon project development, maximizing impact for climate, biodiversity, and coastal communities.

Our solution directly serves coastal communities, local project developers, and early-stage Blue Carbon entrepreneurs—groups vital to the restoration and protection of marine ecosystems, yet currently underserved by the existing ecosystem of finance. Coastal communities rely heavily on ecosystems like mangroves, seagrasses, and tidal marshes for fishing, aquaculture, and other livelihood activities. These ecosystems sustain local economies and act as natural buffers against sea-level rise, coastal erosion, and extreme weather. However, with accelerating climate change and habitat loss, these communities face mounting threats to their homes, food security, and income. Blue Carbon projects present a unique opportunity to strengthen ecological and economic resilience, offering sustainable income streams, enhanced food security, and long-term climate protection. Nature-based solutions like Blue Carbon projects require distinct types of capital at different stages of development. Yet most face a significant financing gap during the implementation stage, after initial philanthropic incubation, before they can access commercial investment. At this stage, projects are deemed high risk, lack access to carbon finance, and often struggle without patient, risk-tolerant capital and expert support. The Blue Catalyst Fund addresses this critical gap by providing catalytic funding, technical expertise, and local capacity building, empowering communities to create high-integrity, investable projects.