Financial innovation to conserve marine biodiversity in Patagonia

Marine biodiversity, especially in ecosystems as unique as those of Chile's Patagonia, faces increasing threats due to overfishing, pollution and climate change. In response to this crisis, marine protected areas have proven to be an effective tool to curb biodiversity loss. However, these areas face a crucial obstacle: the lack of funding for their long-term management and conservation.

CAF -development bank of Latin America and the Caribbean, in collaboration with Fundación Patagonia Azul and Natural Capital Reserve, has promoted at the COP16 in Cali the pioneering program of marine biodiversity credits in Chilean Patagonia. This innovative mechanism quantifies and assigns economic value to conservation efforts, incentivizing local communities and other key stakeholders to manage ecosystems sustainably. The credits attract private sector investment, generating resources that not only strengthen protected areas, but also improve local economies.

"Marine biodiversity conservation is not only an environmental responsibility, but also an economic opportunity. With the marine biodiversity credit program we are promoting in Chilean Patagonia, we are creating a financial model that not only protects crucial ecosystems, but also offers direct benefits to local communities and encourages private investment in sustainability," said Sergio Díaz-Granados, CAF's executive president.

"The Pitipalena-Añihue coastal marine protected area will be the setting where, together with Fundación Patagonia Azul and Capital Natural Reserve, and with CAF's financial and technical support, we will work hand in hand with the local community and Fundación Pitipalena-Añihue to lay the groundwork for the first marine biodiversity credit program in Chile. This pioneering project seeks to enhance the value of marine biodiversity with the objective of providing financing to communities that make conservation efforts, generating the necessary incentives for the proper management and administration of marine protected areas. Reaching this milestone will allow Chile not only to lead in the protection of its marine biodiversity, but also to establish a precedent in the transition to a new economic-environmental paradigm," said Eduardo Sorensen, a specialized underwater photographer.

The first pilot of this program will be implemented in the Cipalaena marine protected area, where the goal is to create an effective and transparent conservation model that can be replicated in other regions of the world. This effort not only positions Chile as a leader in marine biodiversity protection, but also sets a precedent for the transition to a new economic paradigm that balances development and sustainability.

"With CAF's financial and technical support, we will work hand in hand with the local community and Fundación Pitipalena Añihue to establish the basis for the first marine biodiversity credit program in Chilean Patagonia. This pioneering project seeks to enhance the value of marine biodiversity with the objective of providing financing to communities that make conservation efforts, generating the necessary incentives for the proper management and administration of marine protected areas. Reaching this milestone will allow Chile to not only lead the way in the protection of its marine biodiversity in Patagonia, but also set a precedent in the transition to a new economic-environmental paradigm," said Cristian Laborda, Executive Director of Fundación Patagonia Azul.