Egyptian Red Sea Initiative (ERSI)

What is the project about?

The Egyptian Red Sea Initiative (ERSI) is a flagship partnership led by the Government of Egypt, UNDP, and the Global Fund for Coral Reefs (GFCR), launched at COP27 to conserve Egypt’s globally significant Red Sea coral reef ecosystems.

ERSI introduces innovative reef-positive finance mechanisms that support conservation, livelihoods, and economic resilience. By establishing new sustainable financing instruments, fostering reef-positive enterprises, strengthening marine protected areas, and enhances policy frameworks, ERSI  safeguards coral reefs as natural climate refugia while supporting coastal communities and Egypt’s tourism-driven economy.

Situational Background 

The Egyptian Red Sea harbors some of the world’s most climate-resilient coral reefs, providing a natural stronghold against global coral bleaching. These ecosystems are vital not only for biodiversity but also for Egypt’s economy, as they underpin tourism, fisheries, and community livelihoods along the Red Sea coast. However, increasing human-induced pressures –including unsustainable coastal development, intensive tourism, destructive fishing practices, and pollution from land- and marine-based activities are accelerating reef degradation.

In line with Egypt’s National Climate Change Strategy 2050 and updated Nationally Determined Contributions (NDCs), ERSI represents a bold new approach to conservation. It combines innovative finance with community-led solutions, ensuring long-term protection of coral ecosystems while supporting sustainable economic growth and resilience.

How are we doing this? 

ERSI adopts a comprehensive, multi-dimensional approach that goes beyond traditional conservation, combining financial innovation, stronger ecosystem management, and community-driven solutions to ensure long-term reef protection and sustainable livelihoods. To deliver this, the project is structured around three interconnected categories of solutions:

  1. Innovative Financing Solutions:
    • Establishing the Egyptian Fund for Coral Reefs (EFCR) as an independent trust fund to finance long-term reef conservation.
    • Launching the Coral Reef Business Incubator (CRBI) to support and scale reef-positive micro, small and medium enterprises (MSMEs)
    • Deploying blended finance instruments and reef insurance to catalyze private and donor investments in reef-positive businesses.
  2. Socio-Economic Solutions:
    • Supporting community-based initiatives such as sustainable ecotourism, organic waste up-cycling for urban farming, and aquaculture for reef restoration and alternative livelihoods, with a focus on engaging women and youth.
  3. EcoSystem Management Solutions:
    • Strengthening marine protected areas through improved management, business planing, and financing models.
    • Upgrading mooring systems to reduce reef damage from tourism vessels.
    • Enhancing monitoring systems to guide evidence-based decision-making.

How will Egypt benefit? 

Through ERSI, Egypt is establishing a sustainable financing model for coral reef conservation and marine-based livelihoods. The project will deliver: 

  • Egyptian Fund for Coral Reefs established, capitalized, and operational.
  • Coral Reef Business Incubator established that develops, funds, and supports scaling of reef-positive micro, small, and medium-sized enterprises (MSMEs) and other coral friendly organizations, community initiatives, and businesses that benefit local communities, women, and youth.
  • Blended finance opportunities for coral reef-positive businesses successfully implemented in partnership with banks and other finance institutions.
  • Strengthened policy frameworks and institutional coordination strengthened for coral reef finance and conservation.
  • Productive sectors (e.g. fisheries, tourism, waste management) transition to reef positive models through improved management and enhanced awareness and behavioral changes.
  • Enhanced knowledge management and learning for evidence-based decision making on coral reef finance and conservation.
  • Improved national capacity to monitor coral reef conditions to support effective national and local decision making and investments in reef conservation
  • Management & Business Plan developed for the “Great Fringing Reef Protected Area”
  • Innovative finance mechanisms operationalized for MPAs and other marine conservation approaches.