In association with the Foreign, Commonwealth & Development Office.
This workshop brought together representatives from Small Island Developing States (SIDS), development partners, regional institutions, the private sector, civil society and the research community to explore opportunities and challenges in ocean governance and blue economy financing. Discussions focused on the entry into force of the Agreement on the Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction (BBNJ Agreement), the blue economy financing needs of SIDS, persistent data and capacity gaps, and practical solutions for mobilising finance and implementing area based conservation measures. Interactive sessions—including world cafés and breakout groups—were used to identify actionable next steps and clarify stakeholder roles.
Context and Emerging Themes
SIDS are at a pivotal moment. The BBNJ Agreement provides a modern, cross sectoral framework that integrates biodiversity, climate and ocean governance, while global financing systems are evolving rapidly. Across all sessions, several themes consistently emerged:
- Equity and SIDS leadership must be central to ocean governance and financing arrangements.
- Long term capacity and human resources are essential for SIDS to identify priorities, structure projects, mobilise blue financing and engage effectively at national, regional and international levels.
- Data and technology gaps remain significant, but imperfect data should not delay action, while technology transfer should be accelerated.
- Financing solutions must be tailored to SIDS, avoiding unnecessary complexity and fragmentation, while strengthening local capacity to lead on new and innovative financing approaches.
- Private sector engagement requires clearer frameworks, de risking tools and better communication of SIDS priorities and stories.
- Regional collaboration can reduce transaction costs, build scale and strengthen negotiating power.
- SIDS are starting from different baselines, and diagnostic work would help identify country specific needs.
Ocean Governance and the BBNJ Agreement
Discussion on ocean governance centred on the Agreement on the Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction (BBNJ Agreement), which entered into force on 17 January 2026. Participants highlighted the influential role of SIDS in shaping the Agreement—particularly the advancement of the concept of “stewardship”—and noted that early SIDS ratification was instrumental in its swift entry into force.
The Agreement was recognised as a modern instrument that brings together biodiversity, ocean and climate issues traditionally addressed in silos. Participants emphasised the importance of giving practical effect to the principle of “full recognition of the special circumstances of SIDS” (Article 7(m)), especially in the institutional design of the Special Fund and the broader financing mechanism under Article 52.
Equity emerged as a central concern. The BBNJ financing mechanism was seen as an opportunity to learn from existing climate and nature finance models while avoiding their fragmentation and complexity. It was also stressed that SIDS’ stewardship of their national waters generates global benefits, yet SIDS face capacity constraints at all levels. Capacity building and technology transfer under the Agreement could support both BBNJ implementation and national ocean management.
Discussions addressed potential tensions in developing area based management tools—such as balancing conservation ambitions with fisheries interests, or reconciling seabed sovereign rights with water column conservation. Participants noted opportunities for SIDS to benefit from the equitable sharing of marine genetic resources, both through strengthened scientific capability and through emerging ocean related industries.
Financing Gaps and Opportunities
The second plenary examined gaps in ocean and blue economy financing. Three challenges were highlighted: data and knowledge gaps, capacity constraints, and limited access to appropriate financial instruments.
Many SIDS lack the data needed to identify financing priorities. While Nationally Determined Contributions (NDCs) often contain ocean related measures — UN Trade and Development (UNCTAD) notes that 36 of 39 SIDS reference them—national biodiversity strategies and marine plans are less consistently developed. Participants stressed the need for long term, in house expertise to undertake needs assessments and manage financing processes. They also noted that data valuable for conservation is equally valuable for industry, creating potential investment opportunities.
On financial instruments, participants emphasised the need to distinguish between one off expenditures and long term financing approaches. Equity and SIDS specific contexts must guide the design of solutions. A portfolio approach—combining public, private, domestic and external sources—was seen as essential. ODA remains limited: only 1% goes to the ocean economy, and just 0.8% is sustainable.
Innovative mechanisms offer potential but often carry high transaction costs and require capacity that many SIDS lack. Instruments that increase debt, even at concessional rates, are not attractive. Participants stressed that blended finance has often bypassed SIDS in favour of larger countries.
Regional collaboration was highlighted as a way to reduce costs, pool expertise and build scale. The BBNJ Agreement was seen as a platform for developing high quality markets for blue natural assets within broader natural capital markets. Participants also noted that lowering the cost of capital is a systemic issue for SIDS, linked to how international financial institutions and credit rating agencies assess sovereign risk. Strengthening the dialogue with SIDS on how best to assess SIDS assets, risks and resilience investment is required. More widely, improving SIDS literacy amongst the financial community will be important.
From the private sector perspective, it was emphasised that private sector institutions have to provide financing that meets the requirements of shareholders in terms of return and regulators’ expectations. The term “blue finance” can trigger regulatory burdens; some argued for framing this simply as “SIDS financing”. Clear definitions of “good” practice—aligned with SIDS realities—are needed to avoid “bluewashing”. There is also a need to increase private sector knowledge and expertise about SIDS. It was also noted that the difficulties in placing a value on ocean assets and on the blue financing required makes it difficult for private sector finance to engage in this area.
Participants also discussed the role of national financial institutions, regulators and conservation trusts, as well as the potential for levies such as tourism fees—while recognising that not all SIDS have the capacity or economic base to implement them. Community level access to finance is critical for long term sustainability, and fintech solutions could help bridge gaps between local banks and coastal communities.