Adaptation through Water 2025

Project brief: With its abundant marine and terrestrial life, Belize has one of the most diverse ecosystems in the world. Its extensive coral reefs comprise what Charles Darwin called “the most remarkable [barrier] reef in the West Indies”. Belize is also highly vulnerable to climate change. Coastal erosion and flooding, along with land-based pollution, threaten the nation’s marine ecosystems, urban areas and blue economy. In early 2025, the World Bank approved the Belize Blue Cities and Beyond Project, a multi-pronged five-year project designed to strengthen coastal resilience, reduce land-based pollution and wastewater discharge into the ocean, and protect the nation’s coral reefs and fisheries. The project also aims to enhance urban resilience, which will benefit coastal communities, tourism (a key industry, second to agriculture) and fisheries, through carbon market policy development and other infrastructure projects. Funding for the project consists of the International Development Association’s $23.5 million in financing, along with grants from the Global Environment Facility ($3.76 million), the PROBLUE Multi-Donor Trust Fund ($4.0 million) and the Global Facility for Disaster Reduction and Recovery (0.92 million Euros), totalling $32.23 million. Belize Blue Cities and Beyond Project will combine an array of solutions, such as mangrove planting and restoration and wetland-based filtration systems to improve wastewater treatment. The project will also prepare future investment in hard solutions, wherever required, such as reinforced revetments and integrated drainage and sediment control to stabilize shoreline erosion. Why is this case innovative? –Belize Blue Cities and Beyond Project is the first large- scale urban coastal adaptation project that integrates blue economy governance and climate resilience. –Its carbon finance component enables the country to access the carbon market to validate blue carbon credits through coastal ecosystem protection. –Its nature-based solutions approach combines mangrove restoration, wetlands and sustainable urban drainage to mitigate flood risk. How is this example relevant to Southeast Asia’s water adaptation challenges? –The project represents a scalable framework for climate-vulnerable coastal cities in the Philippines, Indonesia and Viet Nam. –It demonstrates confidence in the effectiveness of coastal ecosystem restoration and green infrastructure to enhance flood resilience. –It provides insights on carbon market readiness, blue economy investments and resilience financing. What opportunities does this illustrate for the private sector? –Companies can invest in a variety of coastal protection technologies, such as modular seawalls, geotextiles (used for filtering and drainage) and climate-resilient infrastructure. –Its sustainable finance models offer opportunities for carbon credits, biodiversity credits and blue bonds, to finance the longer term protection of coastal ecosystems. –Companies can participate in the circular economy and waste management activities, including in expanded private recycling initiatives and waste-to-energy solutions, which will also generate more and better jobs.CASE STUDY 1 Belize Blue Cities and Beyond Project: a multi-pronged strategy for coastal resilience and pollution abatement Source: World Bank.19 Adaptation through Water: Mobilizing the Private Sector for Climate Adaptation in Southeast Asia 19