Blue Economy Project Approved for Belize

Blue economy projects promote economic growth while ensuring sustainable use of oceanic and coastal resources. (Unsplash)

The World Bank Executive Board of Directors approved a 32.23 million USD ‘Blue Economy’ project in Belize on January 31, 2025. 

Blue economy projects work to guide economic activities in oceanic and coastal areas, such as shipping and cruise tourism, toward a sustainable future. They typically implement a mixture of decarbonization efforts, conservation policy, sustainable resource use, and even education and training programs. 

For Belize, a nation ranked third among small developing states in risk for climate-change related disasters such as hurricanes and floods, proponents argue the project presents a unique opportunity to harness the power of oceanic resources in a way that prevents future environmental harm. Belize currently faces significant economic risks from environmental hazards, as their ocean economy generates over $1 billion annually from activities such as tourism and fisheries. Overfishing, habitat loss, and unregulated urban development all serve as critical economic risks for Belize. A recent press release from Belize’s Ministry of Blue Economy and Disaster Risk Management stated that “limited innovation, missed opportunities, and a lack of direction” have all contributed to such problems in oceanic and coastal areas. 

The World Bank initiative promises to mitigate environmental risks and promote development through policy changes, capacity building, and water and sanitation management. The policy changes in particular are aimed to curb unregulated urban development and promote conservation efforts for environmental resources such as Belize’s barrier reef. The project promises to enhance Belize’s capacity to manage sustainable ocean activities through geospatial and spatial planning systems and carbon audits. 

As part of the initiative, Belize will enter the carbon market by selling carbon credits through digital infrastructures. This initiative follows other programs in Belize and Seychelles to establish blue bonds—bonds that are used to raise money from impact investors to support ocean-related environmental projects. 

Expanding water and sanitation development in Belize is another key goal of the project. Currently, only 18 percent of the population is served by water sanitation systems. The project plans to combat this issue by upgrading water treatment plans and extending water supply to underserved areas such as South San Pedro. 

The World Bank also emphasizes that the project will empower local stakeholders, such as governments, NGOs, and women-led businesses, so they can benefit from blue economy management. World Bank efforts will collaborate with Belize’s Ministry of Blue Economy and Disaster Risk Management, who encourage Belizeans to explore “creative and sustainable ways to utilize the nation’s blue spaces,” such as in a recent project that examined implementing sustainable oyster farming in Belize. With efforts being led by large, international development organizations, the importance of engaging local communities has proven critical. 

Opponents of the blue economy project argue that the projects can often lack understanding of local cultural traditions and practices, such as the importance of fishing industries. They argue that further understanding would bolster local support for projects and minimize potential negative impacts of environmental regulations on local industries.

Despite the concerns of critics, Belizean authorities remain optimistic that the project will support Belize’s long-term environmental goals of “safeguarding lives, seas and sustainability.”