Innovative Blue Financing Urged to Protect Thailand’s Marine Life and Livelihoods

The World Bank’s 2025 report “Innovative Blue Financing for Integrated Seascape Management in Thailand” calls for mobilizing new financial tools like blue bonds, debt-for-nature swaps, and blended funds to safeguard Thailand’s coastal ecosystems. It argues that protecting marine biodiversity is both an environmental necessity and an economic opportunity for the country’s future.

The World Bank, working in partnership with Thailand’s Department of Marine and Coastal Resources (DMCR) and supported by contributions from local universities and international research organizations, has unveiled its report “Innovative Blue Financing for Integrated Seascape Management in Thailand.” Released in 2025, the study explores how financial innovation can serve as a lifeline for Thailand’s fragile coastal and marine ecosystems, which underpin livelihoods, tourism, and national food security. The report makes clear that traditional government budgets and donor aid cannot keep pace with rising ecological challenges. Instead, it argues, Thailand must mobilize “blue finance”, dedicated capital for ocean and coastal conservation, if it wants to safeguard both its environment and its economy.

Seas Under Strain but Full of Opportunity

Thailand’s coastline, stretching more than 3,000 kilometers, supports vibrant coral reefs, mangrove forests, and fisheries that millions rely on for work and sustenance. These same resources power the country’s thriving beach tourism sector, a major source of foreign exchange. Yet they are also under immense strain. Overfishing continues to deplete stocks, while unchecked coastal development accelerates erosion and habitat destruction. Plastic pollution clogs waterways, and climate change is driving more frequent storms and rising sea temperatures, putting corals and coastal communities at risk. Against this backdrop, the report frames the blue economy as both threatened and full of potential. If new financing pathways can be opened, Thailand could become a regional leader in harnessing capital for conservation while reaping long-term economic benefits.

Assessing Thailand’s Readiness

The report’s first step is a readiness assessment. It finds that Thailand has strong foundations: progressive environmental policies, a record of designating marine protected areas, and a demonstrated interest in restoration projects such as coral reef rehabilitation and mangrove planting. The country is also a signatory to global biodiversity and climate accords. However, institutions remain fragmented, and funding is piecemeal and donor-driven. The report stresses that without stable and predictable financing, conservation efforts will remain too small to meet the scale of the crisis. Encouragingly, Thailand’s robust financial sector is seen as a powerful asset. With proper regulatory backing, banks and investors could become key players in blue financing, unlocking capital far beyond what government budgets or grants alone can provide.

Innovative Tools to Fund the Future

At the heart of the study is an exploration of financial innovations that could unlock new resources. Blue bonds are identified as particularly promising, allowing governments or corporations to raise capital specifically tied to marine conservation outcomes. Debt-for-nature swaps are another mechanism, offering a way to restructure sovereign debt in return for commitments to safeguard coastal ecosystems. Blended finance funds, which mix concessional donor money with private capital to lower risks, are highlighted as a bridge to attract mainstream investors. The report also points to payment-for-ecosystem services models, where industries like coastal hotels or seafood exporters contribute directly to funds that maintain reefs, mangroves, and fisheries. While none of these instruments is a silver bullet, the World Bank stresses that, combined, they could provide a diversified toolkit for Thailand. Success, however, will depend on transparency, accountability, and careful tailoring to the Thai context.

People at the Center of Blue Finance

The report insists that innovative finance must be matched by inclusive governance. Coastal communities, small-scale fishers, and indigenous groups are portrayed as guardians of marine ecosystems whose perspectives and rights must be central to planning. Benefit-sharing mechanisms, local participation in monitoring, and gender-sensitive approaches are deemed essential to ensure equity. Women, often underrecognized yet central to coastal economies, are specifically mentioned as needing stronger inclusion. At the same time, the private sector is called upon to step up. Tourism operators, seafood companies, and shipping businesses, which all profit from healthy seas, are urged to co-finance conservation. Early pilot initiatives where hotels contribute to reef management are cited as examples to build on. By weaving communities and corporations together in joint stewardship, blue finance could secure legitimacy and effectiveness.

Charting the Way Forward

Looking ahead, the report outlines a phased approach. In the short term, Thailand must strengthen its institutional frameworks, align agencies, and embed monitoring systems. In the medium term, small-scale pilot projects such as blue bonds or blended finance funds can be tested in specific regions to refine models and build confidence among investors. Over time, successful mechanisms could be scaled nationally and tied into Thailand’s climate and development strategies. With biodiversity assets, a strong financial sector, and political will, the country could emerge as a hub for blue finance in Asia. The World Bank concludes with urgency but also optimism: protecting the seas is no longer just an ecological choice, but an economic necessity. By pioneering innovative financing, Thailand has a chance to safeguard its coastal wealth while setting an example for the region and beyond.