Bridging the Climate Finance Gap in the Seafood Sector

Christoph Beierl | November 19, 2024

How can we fight climate change if we neglect our most important ally – the oceans?

Our oceans are an undervalued treasure in the fight against climate change – absorbing immense amounts of excess heat and supporting marine biodiversity. Yet, they are under threat and underfunded.

The latest report from the Climate Policy Initiative (CPI) on global climate finance Global Landscape of Climate Finance highlights a significant funding gap in climate protection.

The agricultural sector, in particular (AFOLU: Agriculture, Forestry, and Other Land Use), receives considerably less financial support compared to other sectors, despite its substantial potential for reducing carbon emissions.

Source: Climate Policy Initiative

"SDG 14 (Life Below Water) remains the most underfunded SDG (Sustainable Development Goal) yet holds immense potential to be a game changer in addressing the triple planetary crisis." — UN Assistant Secretary-General, Haoliang Xu.

Our oceans play a crucial role in combating climate change: they absorb around 90% of the excess heat generated by carbon emissions. Yet, they remain one of the most underestimated parts of our ecosystem.

This underfunding is particularly alarming, as the IPCC Special Report on the Ocean and Cryosphere highlights coral reefs' vulnerability to climate change. With just a 1.5°C rise in global temperatures - a threshold we may have already reached - 70-90% of coral reefs could disappear.

Source: IPCC

The National Oceanic and Atmospheric Administration (NOAA), a U.S. agency for ocean and climate research, warns that 2024 will mark the fourth global coral bleaching event in ten years. This is occurring too frequently for coral reefs to recover.

Why Are Coral Reefs So Important?

  1. Coral reefs provide ecosystem services valued at around $11 trillion USD.
  2. They protect coastlines, sustain fisheries, and generate tourism.

In the U.S. alone, they provide coastal protection worth approximately $94 million USD annually, with even greater savings during extreme storms, such as Category 5 hurricanes.

Despite covering only 1% of the Earth's surface, coral reefs are home to 25% of the world's marine biodiversity.

Source: NOAA

Conclusion

Closing the financing gap in climate, agriculture and our oceans can no longer be an afterthought.

At Bonafide, we invest in sustainable aquaculture projects that effectively contribute to reducing carbon emissions.

30% of our portfolio companies have set climate targets validated by the Science-Based Targets Initiative (SBTi). Additionally, we support innovative technologies, such as low impact deep-sea farming, bioremediating algae cultivation and sustainable feeding practices that are key to unlocking the oceans’ potential.

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