Established in 2020, the Global Fund for Coral Reefs (GFCR) is the first and only global blended finance initiative dedicated to coral reef conservation. This public-private coalition includes United Nations agencies, governments, foundations, and other key stakeholders.

The fund focuses on scaling financial solutions and driving the transition to a blue economy to strengthen the resilience of coral reefs and the communities that depend on them against the impacts of climate change. When ocean temperatures remain elevated for extended periods, corals lose their zooxanthellae – photosynthetic microalgae that give them their color and serve as their primary energy source. Under heat stress, these algae begin producing harmful compounds, prompting the corals to expel them. As a result, the corals turn white and can no longer obtain energy through photosynthesis. This process is similar to tree leaves losing their chloroplasts – the structures that contain chlorophyll – except that corals are animals, not plants. Depending on the intensity and duration of bleaching, corals may recover or die.

With FUNBIO as the executing agency for funds in Brazil, the initiative stands out for its blended finance approach, combining grant funding with return-seeking investments in businesses that drive positive social and environmental impacts. This model strengthens local economies while supporting coral reef conservation. Grants play a key role in the initial preparation of these areas, creating the conditions to attract partnerships and private capital focused on the sustainable use of natural resources.

Greenhouse gas emissions are driving rising ocean temperatures and acidification, putting coral reefs under increasing stress – compounded by local threats such as pollution and overfishing. According to reports from the Intergovernmental Panel on Climate Change (IPCC), some of these ecosystems could suffer irreversible damage if global temperatures exceed 1.5°C above pre-industrial levels. If warming reaches 2°C or more, scientists warn that 99% of all reef-building coral species could be lost due to extreme bleaching events and intensified storms, which increase sediment runoff from land and further disrupt marine ecosystems.

With an 8,000 km coastline, Brazil is both highly vulnerable to environmental risks and rich with opportunities for a new conservation approach. Following the initial approval of the Global Fund for Coral Reefs to develop a program in the country, the focus is on engaging and strengthening local stakeholders – including NGOs, governments, researchers, and communities – to advance zoning strategies and identify sustainable business models. These may include low-impact tourism, sustainable fishing, and innovative waste management technologies