Location

Niue

Niue is one of the Small Island Developing States in the South Pacific. The main population is gathered in the capital, Alofi. The greater part of its island is around 60 meters above sea level with an outer reef slope. The population of Niue depends on the ocean to sustain their way of life. The government of Niue designated its entire Exclusive Economic Zone (EEZ) as a multiple-use marine park, and also formally established the Marine Protected Area (MPA) in 2020, which accounts for 40 % of EEZ.

 

Issue

Climate change undermines ecosystem and natural resources

Niue, as a small island has been facing climate change, impacts particularly coastal hazards, for instance, the sea level would threaten underground freshwater supplies. Increasing incidence and severity of tropical cyclones are also seen as a critical threat that damages existing infrastructure and ecosystems. These climatic impacts are also combined with overfishing or sea-bed mining and undermine the sustainability of marine and coastal ecosystems as vital natural resources for the population.

 

Solution / Lesson learned

Ocean Conservation Credit as a fit-for-purpose financing mechanism

The government of Niue will start to operate “ocean conservation credit” in early 2023 as a new fit-for-purpose innovative sustainable financing mechanism. The Ocean Conservation Credit will help the country monetize benefits arising in its ocean space and finance broader adaptation, resilience, and sustainable blue economy. It also aims to raise at least $32 million to capitalize Niue and Ocean Wide Trust Fund that can provide a consistent funding stream to help climate mitigation and adaptation priorities. This is a global call for investment in Niue’s ocean ecosystems by launching a new credit. For sponsors, it could be beneficial to directly impact Niue's ocean ecosystems from the perspective of responsibility to protect oceans.