Vice President Uz Hussain Mohamed Latheef announced a new Coral Reef Insurance initiative aimed at protecting marine biodiversity and strengthening access to finance for small businesses operating in the blue economy.

The announcement was made during a Maldives-hosted side event, “Blended Finance Opportunities for Marine Biodiversity: Case Studies on Coral Reef Insurance and Blue Economy Financing," at the Fourth International Conference on Financing for Development (FfD4) on Tuesday.

Vice President at the side event at FfD4 --- Photo: President's Office

The initiative seeks to close the ocean finance gap by pricing environmental risk, offering protection against climate shocks, and enhancing investment in marine-based enterprises.

The Vice President said the insurance mechanism would help build a pipeline of bankable projects by derisking loans and improving business capacity among micro, small and medium enterprises (MSMEs) in ocean-based sectors.

He warned that continued underfunding of Sustainable Development Goal 14 (Life Below Water) alongside increasing coral bleaching events, posed serious threats to the Maldives’ economy and food security. He described these challenges as both unacceptable and unsustainable.

Calling the oceans a “lifeline,” the Vice President emphasised the Maldives’ heavy dependence on marine biodiversity, particularly for tourism and livelihoods. He urged the international community to reform the global financing system to better support Small Island Developing States (SIDS) facing escalating climate threats.

The Vice President is currently attending FfD4 in Seville, where global leaders are discussing financial strategies for sustainable development. The conference runs from June 30 to July 3.