Outrigger Impact Fund I achieves a first close to finance blue economy projects in global Small Island Developing States
Photo: TheOceanAgency / Ocean Image Bank
NDF has committed a total of USD 9.5 million to the Outrigger Impact Fund I to contribute to closing the adaptation financing gap.
Outrigger Impact Fund I is a blended finance vehicle designed to provide equity and debt financing to blue economy businesses in Small Island Developing States (SIDS), with the objective to support development of blue economy and enhance the sustainability of ocean resources, to build climate and community resilience and drive nature-positive outcomes in vulnerable island and coastal states. As a catalytic investor, NDF has committed a junior equity contribution of USD 8 million, which helped the Fund achieve its first close and begin operations, and served a critical role in mobilising additional investments. In addition to this contribution, NDF has also contributed a grant of USD 1.5 million to support the Outrigger Technical Assistance Facility (OTAF).
SIDS are the custodians of our ocean ecosystems, overseeing around 30% of the world's ocean through their Exclusive Economic Zones and hosting over 20% of global biodiversity and 40% of the world's coral reefs. Their economies and livelihoods are deeply intertwined with the ocean, making them particularly dependent on the natural resources and ecosystem services provided by marine and coastal environments. This dependence also makes them especially vulnerable to climate change, biodiversity loss, and declining ocean health. But despite being at the front line of climate change, SIDS receive a low share of global development finance.
Outrigger Impact Fund I's primary focus will be on investments in blue economy sectors that strengthen climate adaptation and resilience, including circular economy, sustainable fisheries, ecosystem restoration, coastal resilience and climate-smart infrastructure. Distributed clean energy, energy efficiency and low-carbon shipping will also be supported by the portfolio, provided they contribute to broader resilience outcomes for islands.
Supporting nature-positive investments through technical assistance
The Outrigger Technical Assistance Facility (OTAF) is an investment readiness facility established alongside the Fund to support the development of sustainable blue economy projects across SIDS. The Facility provides early-stage financing and technical assistance to help prepare projects for future investments, while also supporting broader ecosystem development through capacity building, stakeholder engagement, and strengthening the enabling environment for sustainable and nature-positive investments in the Blue Economy.
Among others, OTAF will focus particularly on support for nature-based solutions, including more early-stage and innovative projects with the potential to develop into blue carbon or biodiversity credit initiatives, as well as ecosystem restoration and conservation. It also supports improvements in business planning, ESG performance, policy development, impact management, community engagement, capacity building, and knowledge-sharing. These efforts bring together local, Indigenous and global expertise to support sustainable and resilient blue economy development.
Since the soft launch of OTAF in mid-2025, the facility has approved four grants totalling USD 1million for blue economy SMEs benefitting SIDS. The projects span a range of innovative solutions, from supporting seaweed farming and aquaculture as alternative livelihoods for coastal communities, to developing circular solutions that biodigest algae into biogas and organic fertilisers. They also include data tools that strengthen small-scall fisheries and food security, as well as initiatives to remove invasive fish species.
Photo: TheOceanAgency / Ocean Image Bank
Integrating gender equality into blue economy investments
Gender equality is a core element of Outrigger Impact Fund I's Strategy, reflecting Nordic values and recognising the significant gender challenges faced by SIDS. Through dedicated gender impact studies and sex-disaggregated data collection, the Fund aims to generate knowledge on the barriers faced by women and girls and identify opportunities to advance gender equality in the SIDS context. Part of NDF's commitment to the OTAF will support Outrigger Impact Fund I's evaluation and research work, with a particular focus on the interconnections between poverty reduction, gender equality, and climate adaptation and resilience. This will improve impact measurement and contribute to broader learning.
OTAF also includes dedicated support for gender equality, including capacity development, the prevention of Gender-Based Violence and Harassment (GBVH) and the implementation of the Fund's GBVH Policy across its projects. Significant structural gender challenges are faced by SIDS, including elevated rates of GBVH, and barriers to women's participation in the labour force. The Fund's efforts aim to improve safety, livelihoods, and opportunities for women and girls, contributing to more inclusive and resilient development across SIDS, in alignment with NDF’s strategic priorities.
“NDF is pleased to be an early investor in the Outrigger Impact Fund. The Fund aligns closely with NDF’s priorities to help close the adaptation financing gap while strengthening nature and biodiversity in some of the world’s most climate-vulnerable countries. SIDS and the blue economy remain significantly underfunded, and we welcome Outrigger’s focus on these areas and its ambition to mobilise investment where it is needed most,” says Michelle Voon, Program Manager at NDF.