The Importance of Blue Carbon Ecosystem Conservation for Climate Action
Blue carbon ecosystems (BCE), including mangroves, seagrass meadows, and salt marshes, are vital for climate mitigation, storing carbon at significantly higher rates than terrestrial forests. These ecosystems act as crucial carbon sinks while also providing coastal protection, biodiversity support, and economic benefits for communities. However, BCE are among the most threatened ecosystems due to human activity and climate change, making their conservation and restoration urgent priorities. To maximize their potential, countries must integrate BCE into their climate commitments and ensure that investment planning is in place to support long-term conservation and sustainable management efforts.
Effective investment planning is essential to mobilize the financial resources needed to protect and restore BCE while aligning them with national climate and development goals. Strategic investment planning enables governments to attract funding, strengthen policy frameworks, and create economic opportunities through nature-based solutions.
Advancing BCE Investments for Climate Action and Sustainable Development
Biodiversity and ecosystem services—including those provided by blue carbon ecosystems (BCEs)—are essential for human well-being, economic activity, and climate resilience. However, human activities have caused a rapid decline in biodiversity, underscoring the urgent need for sustainable financing to support conservation. In response, the UN Convention on Biological Diversity adopted the Kunming-Montreal Global Biodiversity Framework in 2022, aiming to halt and reverse nature loss while addressing the significant biodiversity finance gap, estimated at US$722–996 billion annually over the next decade. Approximately US$83 billion is needed specifically for coastal areas, including BCEs.
As recognition grows of BCEs’ critical role in climate mitigation, biodiversity protection, economic development, and social well-being, it becomes essential to plan and mobilize investments effectively. This includes integrating BCE-related targets into NDC 3.0 with clear cost estimates and investment strategies. Such integration not only unlocks needed financial resources but also ensures that BCEs are embedded in national climate strategies, sustainable development frameworks, and financial planning. In doing so, countries can enhance resilience, reduce emissions, support livelihoods, and secure vital natural capital for future generations.
Existing Barriers and Enabling Conditions for Financing and Implementing BCE NDCs
Despite increased interest in BCEs, major financing barriers persist. These include limited national budgets, fragmented policies, low institutional capacity, and insufficient or inconsistent data on ecosystems. Accessing international finance is also challenging due to complex eligibility and compliance requirements. Without coherent frameworks and strong governance, countries struggle to mobilize resources and develop investable projects, especially at the scale needed to meet climate and biodiversity targets.
To finance and implement BCE commitments within NDCs, countries must establish strong enabling conditions. This includes securing baseline ecosystem data, clarifying policy and land tenure frameworks, and ensuring stable and transparent governance. Capacity-building within government institutions and the inclusion of local communities are also essential to attract and manage funding. Clear, consistent policies signal credibility to investors, while integrated data and cost assessments help align BCE actions with broader climate and development goals.
Types of Blue Carbon Ecosystem Financing
Financing BCEs requires a mix of public, private, and market-based sources. Public finance can come from national budgets, taxes, subsidies, or international donors and development banks. Innovative tools such as blue bonds, debt-for-nature swaps, and conservation trust funds offer additional pathways. Private and market-based mechanisms include carbon markets, biodiversity credits, and payments for ecosystem services. Blended finance strategies—combining public and private capital—are especially useful in de-risking investments and scaling impact. A diversified financing strategy helps align BCE projects with both climate goals and sustainable development priorities.
To learn more about the Blue Carbon Ecosystems Investment Planning Supplement, please see the dedicated supplement to the Climate Investment Planning and Mobilization Framework available here.
Case Studies
Support resources
The following resources can be considered. Explore the NDC Partnership Knowledge Portal Climate Toolbox for additional blue carbon ecosystems investment planning resources.
