Blue Lending Facility (LMMA)
Investing in Fiji’s Blue Future: Financing the Protection of Coral Reefs and Coastal Livelihoods
A Transformative Blue Finance Initiative for the Pacific
Fiji’s coral reefs are the beating heart of its economy, food security, and cultural identity - yet they face mounting threats from overfishing, climate change, and unsustainable coastal use. To safeguard these ecosystems while empowering local communities, a pioneering partnership between UNDP, UNCDF, UNEP, and the Fiji Development Bank (FDB) has launched an innovative blended finance facility designed to unlock private capital for reef-positive enterprises.
At its core, this initiative is about creating a sustainable financing pathway for the protection and restoration of Fiji’s coral reef ecosystems — transforming conservation into opportunity, and opportunity into resilience.
Reimagining Finance for Coral Reefs
The initiative’s goal is to establish a Blue Lending Facility that mobilizes commercial impact investment to support Locally Managed Marine Areas (LMMAs) and priority coral reef sites across Fiji. By addressing the chronic under-financing of many LMMAs and Marine Protected Areas, this model empowers communities to develop reef-positive businesses that generate income while restoring marine biodiversity.
With support from the Community Conservation Centered (C3), 30 LMMAs have already secured community consent and national recognition. Ten of these will be transformed into investable opportunities — with bankable business models in areas such as sustainable fisheries, eco-tourism, aquaculture, and reef restoration.
Blending Capital for Impact
The transaction deploys a USD 920,000 credit guarantee through UNCDF to de-risk lending to small and medium enterprises operating within Fiji’s blue economy. Of this, USD 770,000 is contributed through the Investing in Coral Reef and the Blue Economy project (ICRBE) and is fully funded by JSDG Fund to deploy the guarantee that allows the Fiji Development Bank (FDB) to extend loans — up to USD 200,000 per enterprise — to businesses that protect coral reefs, enhance coastal resilience, and create jobs, including for women and youth. Whilst USD 150,000 is contributed through the Pacific Insurance and Climate Adaptation Programme (PICAP) to improve climate resilience of SMEs accessing funding from FDB, whereby the facility will provide guarantee over the premiums paid by SMEs to subscribe for insurance cover.
UNEP will provide targeted technical assistance to upskill FDB staff in project monitoring and environmental performance, ensuring every dollar invested delivers measurable ecological and social value.
Together, these partners have crafted a robust, scalable financing model that fuses environmental stewardship with inclusive economic growth.
Development and Climate Outcomes
This investment is not just about conservation — it is about transformation. The facility directly contributes to Fiji’s National Development Plan priorities:
- Climate Resilience & Environmental Protection: Coral reefs act as natural storm barriers, protecting coastal communities while supporting biodiversity.
- Economic Diversification & Livelihoods: Sustainable tourism, aquaculture, and fisheries fuel inclusive growth under the “Leave No One Behind” principle.
- Innovation & Sustainable Infrastructure: Reef restoration and eco-enterprise investments align with Fiji’s shift toward a modern blue economy.
In doing so, the initiative advances multiple Sustainable Development Goals:
- SDG 14: Life Below Water
- SDG 13: Climate Action
- SDG 8: Decent Work and Economic Growth
- SDG 5: Gender Equality
A Model for the Pacific — and the World
The Fiji Blue Lending Facility sets a global precedent for how blended finance can accelerate reef protection and community prosperity. It demonstrates how a small island nation can lead in innovation, resilience, and blue-economy transformation.
This success story has the potential to scale across the Pacific, informing regional programmes such as the Sustainable Pacific Blue Circle Fund and the GFCR initiative in the Solomon Islands.
With an estimated 10 reef-positive enterprises benefiting — including at least 30 % women-led businesses — the facility represents a catalytic opportunity for investors to drive inclusive, climate-resilient growth while preserving one of the world’s most vital ecosystems.
Join Us in Building a Reef-Positive Future
This is more than an investment — it is a legacy.
By partnering in this initiative, investors and donors help shape a future where Fiji’s coral reefs thrive, its communities prosper, and the blue economy becomes a beacon of sustainability for the world.
Invest in Fiji’s Blue Future. Protect the reefs. Empower the people. Inspire the planet.
