Study proposes innovative fund to combat underfunding of ocean-related initiatives
The Ocean Streams for Climate Fund makes it possible to correct the investment discrepancy
15/10/2025
The prominent role of the oceans in discussions about global climate change is becoming increasingly clear. After all, they are fundamental to the planet's climate balance and essential for vital issues such as food security and energy.
However, despite their immense importance, marine ecosystems receive less than 2% of global climate finance – a serious discrepancy that demands urgent resolution, especially since most of the countries most vulnerable to climate change are islands or coastal nations.
To correct this historical underfunding, experts from Route to Belém propose the creation of an innovative funding source for ocean-related solutions: the Ocean Streams for Climate Fund. Inspired by an endowment model, the OS4C Fund aims to integrate climate adaptation, marine conservation, and social justice, with a permanent financial mechanism and participatory governance to protect coastal and ocean ecosystems.
According to Alexandre Castro, a biologist and PhD in Ecology specializing in climate adaptation at Route to Belém, it is crucial to position the ocean as a key element in the journey towards a sustainable future, and this involves increasing the allocation of climate funds to ocean-related issues.
"Having only 2% of funds directed to this cause is incompatible with the leading role of the oceans. They are a fundamental pillar in discussions to combat global climate change and in practices to combat it," says Castro.
To give an idea of the funding discrepancy, between 2019 and 2020, multilateral funds, such as the Global Environment Facility (GEF), allocated less than USD 300 million/year to marine projects, in contrast to more than USD 40 billion annually for sectors such as energy and transport.
Castro further emphasizes that, as important as allocating more funds to ocean-related solutions is implementing this funding fairly. “One of the advantages of the Ocean Streams for Climate Fund is that it was designed with a perspective of facilitating access for the populations that need it most, strengthening cooperation and creating a new governance model. This means that, for example, a more vulnerable country with fewer resources can access OS4F with less bureaucracy than other funds and also count on technical support from other nations.”
OS4F was developed by Castro in co-authorship with Luciano Schweizer, a Partnerships specialist at Route to Belém, who holds a PhD in Production Engineering and has over 30 years of experience in the finance sector, international cooperation, and development finance institutions.
"The climate emergency is a complex issue, and I believe we have moved beyond the phase of experimenting with one-size-fits-all financial solutions. The oceans are an important economic frontier for humanity's livelihood and, along with forests, are a significant carbon sink," says Schweizer. "Therefore, we understand that the moment for implementing and scaling climate finance demands a solution dedicated to the oceans that combines the strengths of multilateralism into a focused instrument."
The fund's operation is detailed in the Technical Note "Ocean's streams for climate fund: Journey from Rio-92 to COP30 in Belém", which can be accessed in full in Portuguese or English .
The study begins by outlining the evolution of the role of the oceans in the global climate agenda from Rio-92 — when they were recognized as a metaphor for environmental interconnectedness — to COP30, where they have consolidated themselves as a crucial element in solutions to the climate crisis.
This journey between climate conferences reveals the emergence of successive crises (acidification, melting glaciers), but also the recognition of the ocean as an ally capable of storing carbon and protecting coastlines. COP30 in Belém is seen as a historic moment, in the heart of the Amazon, symbolizing the interface between forest and ocean.
The Ocean Streams for Climate Fund is an initiative that complements the Tropical Forest Forever Fund (TFFF). This is because its function is to mobilize long-term resources to strengthen coastal and marine resilience, protect biodiversity, and support communities dependent on the sea, always remembering that forests and oceans go hand in hand as the two ecosystems responsible for the planet's climate. But not only that: they are also responsible for capturing and removing carbon dioxide from the atmosphere.
The OS4C Fund uses mechanisms such as blue bonds, blended finance , and climate insurance, articulated with approaches like Ecosystem-based Adaptation (EbA) and Community-based Adaptation (CBA). Capitalized in an endowment format, it guarantees continuity and predictability , ensuring a permanent source of resources for ocean protection. Brazil, as host of COP30, has a strategic opportunity to lead this agenda.
Learn more about the fund by downloading the full study 'Ocean's streams for climate fund: Journey from Rio-92 to COP30 in Belém' in Portuguese or English .
