Coral reefs are the beating heart of our oceans. Although they cover less than one tenth of one percent of the seafloor, they shelter more than a quarter of all marine biodiversity and provide food, coastal protection, and income for hundreds of millions of people. CSF’s work on the economics and finance of coral reefs shows just how critical they are, not only for nature but also for economies and societies around the world. We estimate that healthy coral reefs generate nearly two trillion dollars in economic value each year. From safeguarding coastlines against storms to supporting fisheries and fueling tourism, these ecosystems are among the most valuable on Earth.
But coral reefs are under severe threat. Climate change, overfishing, pollution, and poorly planned coastal development are eroding their resilience at an unprecedented pace. Without urgent action, scientists warn that 70 to 90 percent of living coral could be lost by 2050. For communities in low-lying islands and coastal regions, the disappearance of reefs would mean the loss of natural storm barriers, critical fish stocks, and vital tourism revenues. The costs of inaction—measured in lives, jobs, and infrastructure—are simply too high.
CSF's new report sets out a vision for how finance can play a transformative role in turning this crisis around. We highlight how innovative approaches are already unlocking new flows of investment into reef-positive solutions. The Global Fund for Coral Reefs (GFCR), established in 2020, is a leading example. By blending public and philanthropic funding with private capital, the GFCR has mobilized hundreds of millions of dollars for reef conservation and aims to raise much more by 2030. This blended model reduces risks for investors while channeling finance toward projects that restore ecosystems, create sustainable livelihoods, and strengthen coastal economies.
Across key sectors, we found compelling opportunities to invest in change. Sustainable fisheries and aquaculture models are helping to rebuild stocks, secure food, and improve supply chains. Marine protected areas, when well-managed, boost biodiversity while generating income from tourism and spillover fisheries. Coastal infrastructure that integrates nature-based solutions offers high returns by protecting people and property from storms. And reef-positive tourism initiatives—from visitor fees to eco-certification—show how conservation and business can go hand in hand. Each of these sectors demonstrates that protecting reefs is not just about avoiding losses; it is about creating new sources of prosperity.
We also emphasized that governments play a vital enabling role. Public policy and fiscal tools—such as subsidy reforms, conservation trust funds, and environmental levies—can align incentives and crowd in private investment. Meanwhile, innovative instruments like blue bonds, debt-for-nature swaps, biodiversity credits, and reef insurance schemes are showing real promise. By scaling these solutions, we can close the finance gap that has long hampered reef conservation.
Our findings leave no doubt: investing in coral reefs is investing in the future of our oceans and our communities. Coral reefs generate food, jobs, and coastal protection worth trillions, yet they continue to be undervalued in markets and overlooked in policy. By reframing them as natural infrastructure and a foundation of the blue economy, we can mobilize the resources needed to secure them. If we act now—with creativity, collaboration, and the right financial tools—we can build a reef-positive future that benefits people and nature alike.
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Photo: Coral Reef areal view, courtesy of Marcello Hernández-Blanco