Washington, D.C. January 31, 2025: The World Bank's Board of Executive Directors approved a new project to help Belize advance the blue economy - an economy based on the sustainable use of ocean and coastal resources for economic growth while protecting the environment and improving livelihoods. The $32.23 million initiative will focus on improving the management of coastal and marine resources, increasing safe water supply, and reducing land-based pollution in targeted urban areas.
Belize faces significant environmental and economic pressures, ranking third among small island developing states in disaster risk. Its renowned barrier reef - the largest in the northern hemisphere - has dramatically declined from a 'fair' to a 'poor' health rating, due to overfishing and habitat loss. This vital ecosystem plays a crucial role in the national economy, contributing over $1 billion annually through tourism, fisheries, and shoreline protection.
The country's coastal areas are experiencing intense environmental challenges driven by uncontrolled urban development. Critical infrastructure gaps compound these issues, with 71% of the population having water connections and only 18% served by sanitation systems. Over 50% of the population depend on agriculture and fisheries, making them highly vulnerable to environmental disruptions. High nutrient concentrations from inadequately treated sewage, combined with climate change impacts like more frequent hurricanes, rising sea levels, and unpredictable weather, further threaten the nation's ecological and economic stability.
The new Belize Blue Cities and Beyond Project will address these challenges through strategic policy and infrastructure interventions. The project will focus on creating national geospatial and spatial planning systems and policies that integrate ecological urban planning and nature-based solutions. This includes developing comprehensive water quality control strategies, a national sanitation master plan, and sustainable fisheries and other blue asset monitoring policies to support the sustainable development of Belize's coastal communities and blue economy. The project will also prioritize and develop proposals for future critical urban investments to promote sustainable coastal and blue economy development under a changing climate, in critical urban areas, including in Belize City, Ambergris Caye, and Punta Gorda.
A critical infrastructure component will upgrade Belize City's wastewater treatment plant, expanding its capacity and improving treatment performance to meet national demands and standards. The project will also expand water supply in South San Pedro and implement a waste management pilot designed to reduce waste generation, increase source separation, and promote circular economy investments.
An innovative carbon market development initiative will establish regulatory mechanisms and digital infrastructure for carbon transactions. This will help Belize to develop high-quality carbon credits that can be marketed internationally and unlock sustainable financing mechanisms for the blue economy.
The project will also focus on building the capacity of local stakeholders, including local governments, NGOs, women, and youth-led businesses in blue economy management. This includes specialized training in climate-resilient planning, and gender sensitization to ensure the comprehensive and inclusive development of Belize's marine and coastal resources.
"This is an important initiative which could have a transformative effect," said Lilia Burunciuc, World Bank Director for the Caribbean. "By protecting its valuable natural resources while advancing the blue economy, Belize is setting a model for resilience and economic growth-one that is especially relevant for the Caribbean and other small states facing similar challenges."
The project is funded through multiple sources including the World Bank's International Development Association ($23.5 million), along with grants from the Global Environment Facility ($3.76 million), the PROBLUE multi-donor Trust Fund ($4 million), and the Global Facility for Disaster Reduction and Recovery ($0.96 million).
The International Development Association is the arm of the World Bank which provides grants and low-interest credits to low-income countries and eligible small states.
Learn more about the work of the World Bank in Latin America and the Caribbean: https://www.worldbank.org/en/country/caribbean
