Institute of
Global Affairs
A key constraint for commercial funding of ecosystem solutions is the lack of clear metrics and parameters for investment.
Blue natural capital approaches can be a logical component of an effort for greater private sector funding for coastal ecosystems.
engagement of the insurance industry around the concept of ocean risk and the development of a blue natural capital approach. Private sector funding will benefit not only from tools such as the proposed oceans supplement to the natural capital protocol but also from clear regulatory frameworks. Without adequate ecosystem financing we will not be able to slow, let alone reverse the ongoing loss and degradation of coastal habitats. Public sector sources and in particular climate finance for adaptation, including through blended finance led by multilateral development banks will play a relevant and relatively costeffective role in delivering some funding for coastal landscapes and ecosystems but this will be insufficient. Supporting local livelihoods and a just transition will be key to get the required buy-in, scale and dynamics to offer sustainable ecosystem financing mechanisms. Nature-based solutions, in particular for adaptation finance towards resilient coastal infrastructure are likely to be of increasing importance. Engineering challenges and local capacity building need to be addressed adequately yet such infrastructure, including utilities, transport and coastal protection is most easily accessible to large-
funding. How the forthcoming EU taxonomy on sustainable adaption finance will apply to blue ecosystem finance will be an important determinant of the ability to scale coastal habitat finance. Blue natural capital approaches can be a logical component of an effort for greater private sector funding for coastal ecosystems. Blue natural capital assets will be seen as significantly more valuable under any scenario in which asset managers and governments realize the scale of the stranded assets problem in more traditional sectors. â—†
scale debt finance. Marine habitats such as mangroves, tidal salt marshes and seagrasses are relevant carbon sinks and further opportunities exist to update the blue carbon accounting based on further science such as by adding macro algae and deep-water seagrasses and addressing carbon cycling to more accurately estimate carbon offsets in blue carbon ecosystems. Adaptation finance area is emerging as potentially a robust source of funding for coastal ecosystems. The climate finance space is rapidly developing and starting to offer formats for water and landscape
Torsten Thiele is a Visiting Fellow in the Institute of Global Affairs at the London School of Economics. His research areas are ocean governance and blue finance. Founder of the Global Ocean Trust and Senior Research Associate at lASS, Torsten Thiele had a long career in infrastructure finance in the City of London, where he was Head of Telecom Project Finance for Investec Bank plc till 2013. He holds graduate degrees in economics and in law from Bonn University, an MPhil from the University of Cambridge and an MPA from the Harvard Kennedy School. He returned to Harvard University as a 2014 Advanced Leadership Fellow. Torsten Thiele is also active on a number of advisory boards, including DOSI and EU ocean projects SOPHIE and iAtlantic.
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