European Investment Bank (EIB) Platform supports new blended-finance vehicle focused on sustainable fisheries, renewable energy, waste management and coastal resilience across Small Island Developing States.
A new blended-finance investment fund aimed at accelerating climate resilience and sustainable ocean-based development in Small Island Developing States (SIDS) is gaining momentum, backed by support from the EIB and a growing network of public and private investors.
Outrigger Impact has launched Outrigger Impact Fund I, a fund targeting US$100 million in commitments to provide both debt and equity financing to businesses operating in blue economy sectors across island nations. The initiative seeks to address the chronic shortage of capital available to small and medium-sized projects in vulnerable coastal and island economies.
The operation forms part of the Luxembourg-EIB Climate Finance Platform (LCFP) and has received an EIB financing commitment of approximately €5 million. The fund's total planned size is about €116 million (approximately US$100 million target size) and focuses on projects in Africa, the Caribbean and the Pacific.
The fund is intended to support sectors that strengthen climate adaptation and environmental sustainability, including sustainable fisheries, waste management, ocean-based renewable energy, green port technologies, ecosystem restoration, nature-based tourism and other climate-smart infrastructure projects.
Small Island Developing States are recognised as being among the regions most exposed to climate risks despite contributing little to global greenhouse gas emissions. Outrigger notes that many island economies depend heavily on healthy marine ecosystems, while collectively stewarding around 30% of the world's oceans through their Exclusive Economic Zones, containing more than 20% of global biodiversity and roughly 40% of the world's coral reefs.
A key objective of the fund is to address the financing gap often described as the "missing middle" or the "valley of death", where promising projects struggle to secure growth capital after initial grant funding. The EIB says many small and mid-sized blue economy projects in SIDS are considered too small for large institutional investors, limiting their ability to scale despite strong environmental and social benefits.
To overcome these barriers, the fund has been structured as a blended-finance platform, combining a catalytic junior tranche supported by development finance institutions and philanthropic partners with a senior tranche designed to attract commercial and institutional investors seeking both financial returns and measurable impact outcomes.
"Achieving the first close of Outrigger Impact Fund is a major milestone in our ambition to support adaptation and resilience in small island developing states," said Simon Dent, Managing Director of Outrigger Impact. He added that the combination of private capital, junior capital and technical assistance funding would help accelerate critical blue economy investment across island communities.
Complementing the investment vehicle is the Outrigger Technical Assistance Facility (OTAF), which provides grants and concessional financing to help early-stage projects become investment-ready. The facility is already supporting initiatives in the Caribbean, Pacific and Indian Ocean regions with backing from organisations including UK International Development, the Ocean Risk and Resilience Action Alliance, the Global Environment Facility and the Nordic Development Fund.
The EIB expects the fund to contribute significantly to its Climate Action and Environmental Sustainability objectives and to advance several United Nations Sustainable Development Goals, particularly SDG 14 (Life Below Water). The Bank also notes that, as a private-sector investment vehicle, the fund can support development ambitions without increasing the sovereign debt burden of many island states with already fragile public finances.
With a final fundraising close expected in 2027, the Outrigger Impact Fund represents a significant effort to mobilise private capital into climate adaptation and blue economy projects that have historically struggled to attract investment. Supporters hope the model will demonstrate that protecting ocean ecosystems and strengthening climate resilience can generate both measurable environmental benefits and sustainable financial returns.
EUROPEAN INVESTMENT BANK PROJECT PAGE "OUTRIGGER IMPACT FUND LCFP"
THE FISCH SITE, "US$100M FUND TO BUILD RESILIENT BLUE ECONOMIES IN ISLAND STATES
OUTRIGGER IMPACT - INVESTING IN THE WORLD'S OCEANS AND COASTAL COMMUNITIES
