CAF to invest USD 2.5 billion to boost the blue economy in Latin America and the Caribbean

CAF will invest USD 2.5 billion through 2030 to preserve the oceans, encourage responsible tourism, promote artisanal fisheries, manage the region's coastlines, conserve and restore marine ecosystems, develop clean technologies and renewable ocean energy, decarbonize ports and maritime transport and, ultimately, enhance the blue economy and local communities in Latin America and the Caribbean.

The destination of the funds will respond to the proposals of CAF's new sustainable blue economy strategy, also presented at the BEFF and UNOC, which establishes a comprehensive framework for the development of sustainable productive systems around the oceans, and positions the institution not only as a source of financing, but also as a key partner for countries to implement their development plans around the coasts and oceans.

CAF's new oceans strategy is based on four main pillars:

• Financing, through the provision of resources and investment mechanisms; and the innovation of financial instruments that positively impact the oceans such as: marine bi-diversity credits, blue bonds and debt-for-nature swaps.
• Blue diplomacy, promoting regional cooperation and positioning our oceans as a universal good and the region as a 'solution region';
• Education and capacity building, increasing public awareness and developing competencies in key stakeholders;
• Local value generation, facilitating private participation with a focus on retaining value in coastal communities for truly sustainable development.

“This important financial commitment not only reflects CAF's effort to protect the region's marine ecosystems, but also our ambition to be the main catalyst for a sustainable and regenerative blue economy in Latin America and the Caribbean. We thus reaffirm our commitment to a future where prosperity and sustainability protect the oceans, which are essential for the future of the region and the planet,” said Sergio Diaz-Granados, CAF's executive president.

CAF recently announced that it exceeded its goal of mobilizing USD 1.25 billion between 2022 and 2025 for sustainable blue economy projects, reaching a total of USD 1.32 billion. These resources were allocated to a total of 17 credit operations and 18 technical cooperation operations with sustainable blue economy components and protection of marine and coastal areas, benefiting 16 countries in Latin America and the Caribbean.

Investment lines of the US$ 2.5 billion

CAF's new oceans strategy encompasses several key lines of work for marine and coastal sustainability, including:

• Marine-coastal resources line: management or exploitation of marine-coastal resources for productive or commercial purposes, as well as conservation and restoration of marine ecosystems.
• Blue energy line: Promotion, research and development of renewable energies from the ocean and use of these energies to reduce the carbon footprint of marine-coastal activities.
• Tourism and recreation: Promotion of responsible tourism and recreational practices that protect and conserve marine-coastal ecosystems.
• Generation of economic benefits for cities and local communities.
• Innovation and technology: Includes research and development of new technologies for the exploitation and sustainable use of marine-coastal resources. It also includes marine biotechnology, engineering of offshore structures, digital infrastructure, data development, among others.
• Institutional framework: Focuses on strengthening governance and institutional capacities for the sustainable management of marine-coastal resources. It includes the consolidation or creation of legal frameworks, coherent public policies and articulation between public, private and community actors.

The announcement was also facilitated through a collaboration with the World Economic Forum and the World Resources Institute and will be later accompanied by a special report outlining the state of the blue economy in Latin America and the Caribbean, as well as clear opportunities for investment.