Blending of enterprise development for fisheries with de-risking mechanisms
To address the degradation of coral reef ecosystems and overfishing along the Caribbean coast of Honduras, the MAR+Invest initiative is piloting a blended finance solution that links sustainable fisheries with innovative financial tools. Led by the MAR Fund in collaboration with partners including GOAL, Viwala, and WTW, and co-funded by the Global Fund for Coral Reefs and the BRIDGE Project (supported by the MAVA Foundation and the French Facility for Global Environment), the initiative promotes responsible fishing practices and strengthens access to finance for small-scale fishers.
- Training: GOAL delivered 22 training sessions to 945 fishers and 23 fishing associations, covering best fishing practices, reef health awareness, business management, and legal business registration. These efforts were designed to strengthen fishers' enterprises and promote sustainable fishing aligned with marine conservation goals.
- Parametric Insurance: WTW designed a strawman model for parametric insurance to compensate fishers for income lost due to extreme weather. The model was validated with local fishing associations and includes defined trigger thresholds for three marine zones. Fishers will pay premiums, with the possibility of partial subsidies.
- Other Financial Tools: Viwala is designing concessional loans and guarantees tailored for the small-scale fishing sector, based on economic data collected by GOAL. The MAR+Invest Guarantee Fund is now operational to help de-risk these loans and encourage lending by reducing perceived investment risk in the sector.
Through this work, MAR+Invest demonstrates how blending conservation with community-driven enterprise development can unlock investment and support a sustainable ocean economy.
The below diagram illustrates the structure of this finance solution:
