Impact investment in marine conservation

Abstract Marine Protected Areas (MPAs) are promising examples of Nature-Based Solutions that can protect diversity while delivering ecosystem services. However insufficient funding for effective management and expansion of MPAs remains a challenge and one that particularly affects developing countries. During the last ten years, a community of investors seeking positive social and environmental impacts alongside financial returns, have stepped in to help fill this marine conservation financing gap. An innovative collaborative management approach has been recently implemented in the Dominican Republic for one of the largest MPAs in the Caribbean. Blended finance solutions mixing catalytic, development and impact finance have been used to cover the up-front capital needs. MPA revenues are being generated for MPA management and investor returns, via a range of sustainable finance tools including fees paid by visitors. The solution offers interesting outcomes that uses catalytic and development finance to mobilise commercial impact finance into MPAs. From a Government point of view, the approach provides empirical evidence of how non-public funding can become part of the financing options for a country’s MPA network, reducing the financial burden on Public Budgets. Scalability of the approach seems limited by the number of MPAs with tangible business models.