Investment Opportunities in Seagrass Restoration
[s.n]
Auteur moral
Auteur secondaire
Résumé
"Le rapport « Investment Opportunities in Seagrass Restoration », publié dans le cadre du projet Interreg Euro-MED ARTEMIS, est le premier à explorer comment des instruments de marché peuvent contribuer au financement de la restauration et de la conservation des herbiers de posidonie en Méditerranée, l'un des écosystèmes les plus précieux, mais aussi les plus sous-estimés de la région."
Editeur
Interreg Euro-MED ARTEMIS
Descripteur Urbamet
Descripteur écoplanete
faune aquatique
; flore aquatique
; posidonie
Thème
Environnement - Nature
; Économie - Société
; Méthodes - Techniques
; Nature
Texte intégral
Co-funded by
the European UnionARTEMIS
Investment
Opportunities in
Seagrass Restoration
October 2025
Investment Opportunities in Seagrass Restoration2
Team:
David Álvarez, Álvaro García,
Paula Castillo Alonso (Ecoacsa)
Ivan Paspaldzhiev, Martin Georgiev,
Denitza Pavlova
(EY Denkstatt)
Contributors & Reviewers
Arnaud Terrisse, Alice Wittevrongel
(Plan Bleu)
Ioli Christopolou, Dimitra Syrou
(The Green Tank)
About us:
Home - Interreg Euro-MED - ARTEMIS
Ecoacsa Reserva de Biodiversidad
EY denkstatt
This report is based on the version:
State of the Art Report on Market Based
Instruments for Boosting Seagrass
Restoration and Conservation in the
Mediterranean
By Ecoacsa and EY Denkstatt
December 2024
© MEDSEA Foundation
https://artemis.interreg-euro-med.eu/
https://ecoacsa.com/
https://denkstatt.at/en/
https://artemis.interreg-euro-med.eu/what-we-achieve/
https://artemis.interreg-euro-med.eu/what-we-achieve/
https://artemis.interreg-euro-med.eu/what-we-achieve/
https://artemis.interreg-euro-med.eu/what-we-achieve/
https://artemis.interreg-euro-med.eu/what-we-achieve/
Investment Opportunities in Seagrass Restoration 3
Forefront
Beyond Sustainability: Investing in the Engine
of Mediterranean Prosperity
The health of the Mediterranean Sea is
inextricably linked to its economic vitality.
Within this critical blue economy, seagrass
meadows, particularly the ones of the
endemic species Posidonia oceanica,
function as essential natural assets. They
underpin coastal economies and provide
vital buffers against climate change, yet
they face unprecedented threats from
human pressures. This situation presents
not merely an environmental challenge,
but an emergent investment opportunity.
To address these opportunities, nature
needs more sources of funding; likewise, we
will miss the chance to achieve Kunming-
Montreal Global Biodiversity Framework
(KM GBF) and its goals. Therefore, we are
at a pivotal moment, transitioning beyond
traditional grant-based driven conservation
funding, either by governments or
philanthropy towards developing genuinely
bankable, nature-positive projects willing to
meet businesses and investors? interest.
This report outlines the strategic case
for investing in seagrass restoration. The
Interreg Euro-MED ARTEMIS initiative,
detailed herein, is pioneering the necessary
frameworks to unlock the tangible financial
value inherent in these ecosystems.
We are building the bridge between
ecological restoration and financial
return, offering investors a unique chance
to participate in a nascent market that
promises both a significant impact and
long-term value.
Join us at the forefront of the
Mediterranean blue finance innovation!
Join us as we build the bridge
between ecological restoration and
financial return
This report
outlines the
strategic case
for investing
in seagrass
restoration.
?
Investment Opportunities in Seagrass Restoration4
Executive summary
Mediterranean Seagrass: From
Ecological Gem to Investable Asset Class
This report presents the investment case
for Mediterranean seagrass restoration,
a burgeoning frontier in natural capital
markets.
? The Mediterranean blue heart:
Accelerating seagrass restoration brings
significant benefits not only to marine
biodiversity, since Posidonia meadows
provide habitat for numerous species,
but also to humans by protecting
coastlines from erosion, improving
water quality, serving as nurseries for
coastal fisheries, enhancing the aesthetic
beauty of our oceans and coastlines,
and contributing to the formation and
extension of sand dunes.
? The Untapped Opportunity:
Mediterranean?s iconic Posidonia
oceanica seagrass meadows constitute
vast, undervalued natural capital,
essential for regional climate resilience
and key industries like coastal tourism,
insurance industries and fisheries.
? Valuing Ocean Health:
Seagrass restoration offers pathways
to tangible financial returns through
structured financial mechanisms based
on market-based tools. Key avenues
includeBlue Carbon Creditsfor climate
mitigation, emergingBiodiversity or
Nature Creditsmeeting corporate
nature-positive goals (driven by KM
GBF, EU Roadmap and other initiatives
explained next), andPayment for
Ecosystem Services (PES)schemes
linking beneficiaries directly to positive
verified outcomes in nature.
? Favorable Market Tailwinds to create
robust and credible demand:
Investment is underpinned by powerful
global and regional drivers. The KM
GBF (Target 19), the EU Green Deal, the
new EU mandate for Nature Credits,
the Corporate Sustainability Reporting
Directive (CSRD), EU Taxonomy
We invite you
to explore this
compelling
proposition!
alignment, climate and nature resilience
initiatives and evolving nature finance
standards collectively creating robust
demand and structure for credible
nature-based investments.
? The ARTEMIS Blueprint for Bankability:
The ARTEMIS project serves as a crucial
incubator, developing investable
restoration models across key
Mediterranean sites. It integrates rigorous
science combined with the United
Nations-backed System of Environmental
Economic Account - Ecosystem
Accounting (UN SEEA ? EA) framework
and credible Monitoring, Reporting, and
Verification (MRV) systems, building the
investor confidence necessary for market
growth.
Your Entry Point:
Investing in Mediterranean seagrass
offers a strategic opportunity to achieve
financial returns, mitigate portfolio
risk, assured financial nature assess,
meet critical Environmental Social and
Governance (ESG) mandates, and secure
early-move advantage in the rapidly
expanding blue economy.
?
Investment Opportunities in Seagrass Restoration 5
Index
1. The ARTEMIS framework
2. The Mediterranean?s Blue Heart:
Seagrass as Blue Financial
Infrastructure
3. A Depleting Asset: The Financial
Imperative for Investment
3.1 The Rising Tide of Risk: Why
Seagrass Loss Impacts the
Bottoam Line
3.2 Policy Tailwinds: Creating Market
Demand and Structure
4. Blue Infrastructure funding: The
case for marine meadows
4.1 State of the art on seagrass
investment
4.2 Preserving marine meadows
5. Monetizing Ocean Resilience:
Pathways to FinancialReturn
5.1 Natural Markets as part of the
solution
5.2 Market based instruments for marine
meadows funding restoration
5.3 Accounting for value creation &
monitoring
5.4 Market size
6. Final takeaways
Acknowledgements
References
Glossary
Annex I
6
7
8
8
9
10
10
10
12
12
13
17
17
20
22
23
24
25
Disclaimer (if appliable)
?Although Ecoacsa has endeavored to provide
accurate and reliable information, Ecoacsa relies
on the accuracy of the underlying data provided
and those readily available in the public domain.
Ecoacsa will not be responsible for any loss or
damage caused by relying on the content of this
report.?
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organization cannot accept responsibility for loss
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Investment Opportunities in Seagrass Restoration6
The ARTEMIS framework
The ARTEMIS
project
strategically
leverages
four distinct
Mediterranean
locations to
develop and
validate robust
restoration
and financing
approaches.
?
The Interreg Euro-MED ARTEMIS project aims to accelerate the Restoration of Seagrass
Meadows in the Mediterranean area through innovative ecosystem-service based Solutions.
Project partners include Plan Bleu, Hellenic Centre for Marine Research, Istituto Superiore
per la Ricerca et la Protezione Ambientale (ISPRA), Mediterranean Coast and Sea Foundation
(MEDSEA), Minorcan Institute of Studies ? Socio-environmental Observatory of Menorca (IME-
OBSAM), Municipality of Monfalcone, ECOACSA, EY Denkstatt, Bax, and the Green Tank.
The ARTEMIS project strategically leverages four distinct Mediterranean locations to develop
and validate robust restoration and financing approaches. These pilots serve as real-world
laboratories generating critical data on costs, success factors, stakeholder engagement, and
measurable outcomes needed to structure credible investments.
? Menorca, Spain (Cala Blanca): Restoring from Direct Impact:Testing active restoration after
infrastructure impact; developing PES links to coastal users. Demonstrates targeted recovery
potential.
? Sardinia, Italy (Capo Testa Punta Falcone MPA): Balancing Conservation and
Use:Combining passive (anchoring removal) and active restoration in an MPA; developing
PES models linked to yachting/tourism fees. Quantifying carbon/biodiversity uplift in a
protected area.
? Crete, Greece (Atzikiari Bay, Natura 2000): Recovery in a Protected Area:Investigating
restoration after fish farm impacts within Natura 2000; linking restoration to fisheries and
biodiversity goals. Exploring carbon/biodiversity co-benefits.
? Monfalcone, Italy (Gulf of Trieste): Addressing Complex Industrial Settings:Applying
lessons to mixed seagrasses near a port; exploring links to port operations, shipping (Blue
Carbon+), and industrial mitigation needs.
EY
DENKSTATT
ECOACSA Bax
Municipality of Monfalcone
IME OBSAM
MEDSEA
MENORCA
CRETE
SARDINIA
MONFALCONE
ISPRA
Plan Bleu
THE GREEN
TANK
HCMR
Cala Blanca, Menorca
(Balearic Islands, Spain)
Partner in Charge:
? Institut Menorqui
d?Estudis - OBSAM
Associate Partner:
? Government of the
Balearic Islands
? Menorca Preservation
Atzikiari Bay, Sitia
(Crete Island, Greece)
Partner in Charge:
? Hellenic Centre of Marine
Research
? The Green Tank
Associate Partner:
? Region of Crete
? Natural Environment and
Climate Change Agency Project Partners Pilots
Monfalcone
(Gulf of Trieste Italy)
Partner in Charge:
? Municipailty of
Monfalcone
Capo Testa Punta Falcone
(Sardinia Island, Italy)
Partner in Charge:
? MEDSEA Foundation
Associate Partner:
? MPA Capo Testa Punta
Falcone
1
Figure 1 - ARTEMIS map of Pilot sites
Investment Opportunities in Seagrass Restoration 7
2
1LIFE ? Blue Natura, 2016; 2WWF MMI, 2025; 3Duarte et al., 2025; 4Conservation International et al., 2022;
5UNEP, GRID-Arendal, & UNEP-WCMC, 2020); 6UNEP, n.d
The Mediterranean?s Blue Heart:
Seagrass as Blue Financial Infrastructure
?
Posidonia oceanica: The Blue Natural
Infrastructure Powering Coastal
Economies
Posidonia oceanica is a marine plant -
not an algae- meaning it has roots, stems,
leaves, fruits and flowers. It forms meadows
between the surface and a depth of 40
metres. Posidonia oceanica is an endemic
seagrass species of the Mediterranean
Sea, which creates extensive meadows
occupying a surface area of approximately
35 000 km21.
These underwater plants constitute
an ecosystem of great beauty, whose
contribution to the good environmental
status of the Mediterranean Sea, and
consequently, the Mediterranean economy
is vital. According to the French Court,
¤ 86,000 per hectare/year is the value
of the ecosystem services provided by
Posidonia oceanica 2. Other studies show
that seagrass are valued at ¤5,57 trillion
annually3. Awareness of this value shall
reinforce and encourage the value of
conserving and restoring marine meadows.
? Climate Regulation & Carbon Markets:
Functioning as highly efficientBlue
Carbon Sinks, these meadows capture
and store significant amounts of
atmospheric carbon. Restoration directly
contributes to climate mitigation goals
and generates potential revenue streams
through verifiedcarbon credits.4
? Coastal Defense & Risk Reduction: Acts
as a naturalbreakwater, dampening
wave energy, stabilizing the seabed,
protecting coastal infrastructure,
reducing erosion, and lowering insurance
risks ? offering substantial avoided costs.5
? Biodiversity & Economic Engine: Critical
nurseries and habitatssupporting
commercial fisheries and underpinning
the appeal of coastal tourism. This
richness is the foundation for commercial
fisheries to provide seafood and
guarantee long term good condition
ecosystems as the bases for touristic
activities.6
? Water Quality Maintenance:Trapping
sediments and filtering pollutants
improve water clarity, benefiting tourism,
recreation, and aquaculture operations.6
Seagrass can store up to
8.4 Pg C globally (Duarte
et al., 2013) at 27.4 Tg C/yr
(Fourqurean et al., 2012)
Soft bottom fixing
Reduction of turbidity
Exportation of
dead leaves
Food supply to
other ecosystems
Water
oxygenation
Hot-spot of
biodiversity
Exportation of
commercial species
O2
Refuge &
habitat
Carbon
sequestration
Content developed by By Ecoacsa and EY Denkstatt
According to a
recent ruling
from the French
Court (2024),
the value of the
ecosystem services
provided by
Posidonia oceanica
is ¤86,000 per
hectare/year.
Figure 2 - Seagrass Meadows? Ecosystem Services, Source: Own elaboration
Investment Opportunities in Seagrass Restoration8
A Depleting Asset: The Financial
Imperative for Investment
? Only France and the Balearic Islands have implemented and upheld rules to prohibit or at least control
anchoring impact on Posidonia oceanica. 6UNEP, n.d
?
While the value proposition of healthy
seagrass is clear, this critical asset is under
severe threat. Globally, an alarming 7% of
seagrass habitat is lost annually (UNEP,
n.d)6. Mediterranean rates are worryingly
high in many regions, driven by factors
like coastal urbanization, pollution,
unregulated? anchoring, destructive fishing
(mainly trawling fisheries), and climate
change impacts.
This degradation is not just an
environmental tragedy; it represents
a growingmaterial financial risk.
Posidonia oceanicameadows across the
Mediterranean are experiencing significant
decline, particularly in areas subject to
intense human pressure.
The financial consequences of inaction are
becoming increasingly apparent:
? Sand beaches quality and width decrease
due to Posidonia surface reduction. This
in turn might reduce tourism activity and
affect coastal economies.
Investing in seagrass restoration is urgent. This section justifies ?Why the moment is now??
from the perspective of risks and market demand.
? Drastic reduction of nurseries promotion
could result in fisheries collapse and
these impacts could economically affect
the seafood industry and food security
and autonomy.
? Broader coastal vulnerability amplifies
storm damage costs. Coastal protection
costs for governments or insurance
companies will be increased.
? Stricter regulation to meet KM GBF
goals might cause some current
activities (fisheries, recreational trawling,
waste management?) to change and
dramatically increase their operational
costs becoming non-viable.
? Lost carbon storage potentially creates
future liabilities.
Therefore, investing in seagrass restoration
transcends environmental stewardship
and goes beyond CSR or philanthropy for
companies.
Figure 2 - Left - a thriving Posidonia meadow. Right - degraded, barren ?dead matte? seafloor
The Rising Tide of Risk: Why Seagrass Loss Impacts the Bottom Line3.1
© MEDSEA Foundation© Wiki Commons, Gronk. License
Investing
in seagrass
restoration
transcends
environmental
stewardship and
goes beyond CSR
or philanthropy
for companies.
3
https://commons.wikimedia.org/wiki/Commons:GNU_Free_Documentation_License,_version_1.2
Investment Opportunities in Seagrass Restoration 9
7European Commission, 2025
?
Supportive policy and regulation are critical
to market enablers. Globally, theKunming-
Montreal Global Biodiversity Framework
(GBF)signals strong governmental
commitment. KM GBF lays out concrete
targets for 2030, including restoration of
30% of degraded ecosystems (Target 2),
conservation of 30% of Lands, Waters and
Seas (Target 3), and mobilization of $200
billion per year for Biodiversity (Target 19).
The European Union has pledged to
allocate 10% of its budget in 2026 and
2027 to initiatives and investments aimed
at protecting and restoring biodiversity.
This commitment will be implemented
through various financial instruments
and programs. Additionally, the EU plans
to double its funding for international
biodiversity efforts, reaching ¤7 billion for
the 2021?2027 period. These actions align
with the GBF Target 19.
? The EU Restoration Law provides a
unique legislation framework globally to
restore at least 20% of the most relevant
habitats in Europe by 2030.
? The EU Nature Credits Roadmap to
boost private investment in nature-
positive actions provides an appropriate
institutional context for driving forward
ocean restoration agendas.
? TheCorporate Sustainability Reporting
Directive (CSRD)mandates extensive
disclosure on sustainability, including
biodiversity impacts.
? TheSustainable Finance Disclosure
Regulation (SFDR)requires financial
players to disclose sustainability risks.
? TheEU Taxonomy for Sustainable
Activitiesprovides a classification system
incentivizing qualifying investments.
These policies collectivelycreate tangible
demandfor verifiable nature-positive
investments. Moreover, public funds can act
as de-risking capital to attract private co-
investment in blended finance models.
In February 2025, The European
Commission introduced significant
changes to the regulatory framework
for sustainability reporting through
the Omnibus package. One of the key
proposed changes is the modification of
the Corporate Sustainability Reporting
Directive (CSRD), which will now primarily
apply to larger companies with over 1,000
employees and specific revenue or asset
thresholds. This adjustment is expected
to significantly reduce the number of
companies required to report, while still
maintaining the essential requirement for
double materiality analysis. Additionally,
the number of reporting indicators will be
streamlined to enhance practicality and
ease of compliance.7
Market driven initiatives: Meeting Market
Expectations, Initiatives & Standards
Alignment.
Alongside regulatory drivers, voluntary
market initiatives and sustainable standards
play a key role in shaping corporate strategy
and investor expectations, further building
the case for seagrass investment. These
are paving the way to help corporate and
investors to better understand how nature
may impact their investments.
? TheTaskforce on Nature-related
Financial Disclosures (TNFD)guides
corporate reporting on nature risks/
opportunities.
? The Global Reporting Initiative (GRI)
includes biodiversity reporting standards,
and financial standards within the
International Sustainability Standards
Board (ISSB) is building a natural
capital framework to gather financial
consequences of nature inaction.
? Initiatives like the Nature Positive
Initiative shape credible corporate action
and metrics.
Alignment demonstrates proactive
management of nature-related issues. This
is why high-quality seagrass restoration
methods must align naturally with globally
recognized frameworks: Based on this,
companies that will proactively develop
strategies for mitigating these escalating
natural financial risks would rebuild a
resilient economy by creating valuable
natural assets that secure long-term
economic stability.
Overall, by positioning seagrass as a
strategic blue natural capital asset,
the Mediterranean region can attract
substantial investment aligned with the
above policy restoration goals.
Policy Tailwinds: Creating Market Demand and Structure 3.2
Public funds
can act as de-
risking capital
to attract private
co-investment in
blended finance
models.
Investment Opportunities in Seagrass Restoration10
Blue Infrastructure funding: The case for
marine meadows
The financing gap to halt and reverse
biodiversity loss is estimated at ¤613
billion per year8. In the ocean, an
estimated financing gap of ¤150 billion
per year remains to deliver Sustainable
Development Goal 14 ?Life Below Water?.
Narrowing down to the European Union,
the region faces an estimated ¤19 billion
annual gap in the investment needed to
Seagrass meadows restoration can be
achieved in two ways. One being creating
new meadows where they used to exist
in the past (active restoration), the other
consisting of reducing or removing the
impacts that erode marine meadows,
achieve theEU Biodiversity Strategy for
20305
As far as Posidonia oceanica conservation
in the Mediterranean is concerned the
annual funding needed per year is: ¤336
million. Yet, the current funding received
annually is ¤17 million. Overall, leading to a
Mediterranean funding restoration gap of
¤319 million euros per year 9.
State of the art on seagrass investment
Preserving marine meadows
4.1
4.2
Seagrass restoration is still an emerging
field in marine natural capital markets.
Only ¤3.35 billion across 237 projects from
161 different funders in 127 countries have
been actively invested in the restoration of
coastal and marine ecosystems between
2015-2022. Within this contribution from
the private sector, it is still far from Global
Biodiversity Framework target 19 goals10.
Across the global database, ¤75 million
has been allocated to seagrass projects
(7%) for 40 projects (~19% of total) or
approx. ¤1.88 per project on average.
Out of these, only 8 projects have
received private sector funding (20%).
Within Europe, Mediterranean countries
and the United Kingdom, only 5 private
sector seagrass projects are recorded,
for a total funding of approximately ¤15.6
million but across all funding providers.
Overall, seagrass projects receive a
relatively minor share of funding
compared to more prominent ecosystems
globally (mangroves, coral reefs), and
within the European continent, terrestrial
projects predominate10.
thereby allowing them to recover by
themselves (passive restoration).
Active restoration includes direct
interventions to help ecosystems recover,
such seagrass seeding techniques11.
Funding
gap
5 EC, 2025; 8 IFC, 2023; 9Blue Seeds, Mediterranean Posidonia Network, WWF Med & OFB, 2024;
10UNEP-WCMC, FFI & ELP, 2020; 11 Redeia, IMEDEA, CSIC-UIB, 2024
¤336m ¤319m¤17m
Annual
funding
recieved
Annual
funding
needed
Figure 3 - The Mediterranean funding restoration gap
4
Investment Opportunities in Seagrass Restoration 11
Overall, seagrass
projects receive a
relatively minor
share of funding
compared to
more prominent
ecosystems
globally
?
Seagrass seed sowing is the most effective
and economical method for large-
scale restoration. According to experts12
restoration projects reporting highest
survival (57%) used a range of techniques,
including transplantation of seagrass
seedlings, sprigs, shoots, or rhizomes. These
methods require ongoing monitoring and
adaptation of strategies based on observed
results.
The average reported costs for active
restoration of one hectare of seagrass
meadows, according to specialists12 range
between ¤516k - and ¤942k. In 2024 in the
Balearic Islands (Spain) an active seagrass
restoration project reported costs of ¤250
(i.e, ¤2.500.000/ha) per m2 of Posidonia.
Passive restoration involves protecting and
managing existing habitats to allow nature
to recover on its own. This approach relies
on the natural resilience of ecosystems and
focuses on minimizing disturbances such
as installing eco-moorings and eradicating
illegal anchoring, verifiable reduction of a
point-source pollutant affecting a meadow,
effective surveillance and enforcement to
prevent damage.
Both active and passive restoration
techniques are essential to protect
underwater ecosystems, as they upgrade
the ecosystem extent and condition. That
in turn, leads to passive restoration
being the most impactful and efficient
approach for seagrass conservation2.
According to recent data from the
Balearic Islands, the conservation costs
derived range from 57,80¤/ha/year ? 38,1¤/
ha/year.
12 Bayraktarov et al., (2016); 2 WWF MMI, 2025
Notes:
*For year 2010. In 2024 in the Balearic Islands (Spain) an active seagrass restoration project reported
costs of ¤250 per m2 of Posidonia.
** Average price
© MEDSEA Foundation
Investment Opportunities in Seagrass Restoration12
Monetizing Ocean Resilience: Pathways
to Financial Return
Nature markets refer to economic systems
or mechanisms that assign value to
nature and its services, enabling financial
transactions that support conservation,
restoration, and sustainable use of
natural resources. These markets create
incentives for protecting ecosystems by
linking ecological outcomes (like carbon
sequestration or biodiversity gains) with
economic value.
They are essential tools for unlocking
investment, aligning incentives, and
Nature Markets as part of the solution
Types of Nature Markets relevant for valuing seagrass ES
5.1
Table 1
sustaining long-term seagrass restoration
efforts. When properly designed and
regulated, they can complement policy and
community-led conservation by bringing
financial capital and accountability into
ecological restoration.
The table below includes four types of
nature markets: asset, intrinsic, credit
and derivative markets, while it brings
definition, value type, example activities
and market characteristics of each one.
Type Asset Markets Intrinsic Markets Credit Markets Derivative Markets
Definition Markets that
trade rights to use
ecosystem assets
and the services they
provide.
Involve the exchange
of provisioning,
regulating, or cultural
ecosystem services.
Markets that trade
credits representing
efforts to enhance or
conserve ecosystems.
Financial products
that reflect the value
of ecosystem services
or assets.
Value Type Stock of value;
long-term revenue
potential.
Annual production
value; often cultural
or subsistence-based.
Annual flow of value;
policy-driven.
Can represent both
stock and flow values.
Example
Activities
? Leasing rights
for sustainable
aquaculture
? Eco-resort
concessions
? Marine spatial
planning zones
? Whale watching tours
? Recreational diving/
snorkeling
? Coastal heritage
tourism
? Blue carbon credits
from mangrove
restoration
? Seagrass
conservation credits
? Insurance products
for coral reef
protection
? Ocean risk hedging
instruments
Market
Characteristics
Requires enforceable
property rights
and long-term
investment.
Emerges from
cultural, recreational,
or subsistence value.
Driven by
environmental
regulations
and voluntary
commitments.
Tied to financial
markets; often used
for risk management
or speculation.
Source: Adapted from Taskforce on Nature Markets, 202313
5
Investment Opportunities in Seagrass Restoration 13
These markets
create incentives
for protecting
ecosystems by
linking ecological
outcomes
(like carbon
sequestration or
biodiversity gains)
with economic
value.
?
For seagrass restoration to attract
significant private capital, clear pathways
for financial return are essential. Moving
beyond traditional funding models to
embrace market-based instruments that
capture the economic value of restored
ecosystems is essential to overcome ocean
needs. In other words, building the business
case to provide revenues arising from
restoration and conservation activities is key
and Market-Based Instruments (MBIs) play
a crucial role. MBIs are indirect regulatory
instruments, which influence actors?
behaviour by changing their economic
incentive structure. MBIs are tools used
in environmental policy which include
taxes, emission trading systems, removal
of perverse incentives, liability rules
and deposit-refund14. Instead of relying
solely on regulations or direct government
interventions, MBIs leverage economic
incentives to promote environmental
benefits. These types of policies work by
reflecting the environmental impact of a
certain action by attaching a cost to it and
providing an incentive to the polluter to
reduce his impact. However, nature credits
sets a new paradigm for MBIs by providing
an investment tool oriented to reward
nature positive outcomes versus other
MBI?s focussed on reducing impacts.
Overall, MBIs aim to incorporate the
environmental costs into market pricing,
encouraging more sustainable behaviour
from businesses and consumers.
A key characteristic that these MBI must
meet is to generate ?additionality?. This
Market based instruments for marine meadows funding
restoration
5.2
means the scheme should bring additional
benefits that would not have been achieved
without its implementation. In that sense,
the goal of MBI?s is to close the finance and
management loop between beneficiaries of
ES and the stewards of the ecosystems that
enable these services.
Among emerging MBIs, several has been
considered within this report for marine
meadows depending on the activities
that might provide this additionality, the
length of the agreements and the nature of
restoration activities:
A. Payment for Ecosystem Services (PES):
Linking Beneficiaries to Outcomes
A foundational approach involves
structuringPayment for Ecosystem
Services (PES)schemes. These
innovative models facilitate direct
paymentsfromentities benefiting
from restoration (like tourism operators
profiting from clearer waters)tothe
projects delivering those verified
services. PES typically involves voluntary
agreements where pre-defined, monitored
environmental improvements trigger
compensation. This creates sustainable,
localized funding cycles directly reflecting
the economic utility of the restored
ecosystem. These agreements must be
renewed on an annual basis through
annual transactions to guarantee that
positive outcomes are provided, otherwise
the system shouldn?t be provided with
additionality. Therefore, once the activity is
finished, the payment is over.
14 Görlach, 2013
Investment Opportunities in Seagrass Restoration14
Figure 3 - Local financing mechanisms for seagrass restoration
B. Blue Carbon Credits: Tapping into
Climate Finance
Seagrass meadows are powerful carbon
sinks, makingBlue Carbon Creditsa major
potential revenue stream. By rigorously
quantifying the additional carbon
sequestered through restoration, or carbon
sinks that have been avoided to be released
to the atmosphere through conservation
activities or passive restoration, projects
can generate verified credits tradable on
burgeoning voluntary and compliance
carbon markets. Growing corporate
demand for high-integrity, nature-based
climate solutions makes this attractive.
Success hinges on credible Monitoring,
Reporting, and Verification (MRV) ? a core
focus of the ARTEMIS methodology.
Notwithstanding, some studies suggest
that Blue carbon credits by themselves
are not enough for financing seagrass
restoration projects .
Stacking
Biodiversity conservation
Water quality
Seagrass
Stewards
Philanthropic
Government
Companies
Others
Others
Blue carbon
absorption and
storage
CO2
C
Content developed by By Ecoacsa and EY Denkstatt
Investment Opportunities in Seagrass Restoration 15
Box 1 - Example of regional blue carbon standard
Box 2 - Structure & Design of Biodiversity Credit Projects: 1-Year Design & Registration Timeline
C. Biodiversity Credits (Nature Credits):
The Next Wave in Environmental Markets
While carbon represents a significant
opportunity, the financial case for seagrass
extends further, incorporating broader
nature values and innovative mechanisms
such as biodiversity credits.
A biodiversity credit is a measurable,
evidence-based unit representing
positive biodiversity or nature outcomes
achieved through restoration activities that
are additional and durable15.
Companies can purchase these credits
to meet nature-positive commitments, to
insurance operations, access ecosystem
services, support green claims, enhancing
subsidy programs or green investments
and fulfill disclosure requirements.
Seagrass restoration projects,
demonstrably enhancing marine habitats,
The LIFE ? Blue Natura project aimed to restore Posidonia oceanica seagrass meadows across 11 hectares in the
protected area of the Natural Park of Cabo de Gata-Níjar. The restoration plan involved replacing traditional boat
mooring systems, which used concrete blocks and chains, with advanced fixed mooring structures. However,
the estimated cost of these works was ¤273,000, with the costs of validation, verification and monitoring not
included.
Measuring seagrass carbon to the precision required for formal accreditation is too expensive given current
prices and total carbon stocks involved. The project estimated a total CO2 absorption of 684 tCO2e over 50 years
and was ultimately not implemented due to financial instability, the high fixed and variable costs, and the low
anticipated price of carbon credits. Some conditions that might enhance the uptake of blue carbon credits
would be valuation of seagrass co-benefits in the schemes, such as biodiversity and other ecosystem services.
Phase Key Actions
Definition Define scope, type, and goals of the project
Due Diligence Select restoration actions; baseline structuring
Monitoring Create biodiversity monitoring scheme; define impact milestones
Legal Land tenure analysis, government consultation, collaboration agreements
Financial Develop financial model, investment plan, and fiduciary trust
Commercial Build sales plan, marketing, and commercialization strategy
Risk Design risk management tools and identify mitigation strategies
Registration Finalize and register the project
SPAIN. Cabo de Gata, Andalucía
Start date 2011?End date 2017. (LIFE ? Blue Naura, 20161)
are prime candidates for generating high-
integrity credits in this emerging market.
Biodiversity credits are not just a tool?
they?re a transformational model for
conservation. Scaling success requires
three key elements:
I. Robust and agreed metrics to guarantee
that nature is measured in the right way.
II. Building the legal and financial
infrastructure to support the market at a
European level which will include integrity
safeguards, traceability, contracts, new
Asset class?
III. Construct the demand based on
amending the current regulation (CSRD,
CDDD or Nature Restoration Law?) to
provide clear signals and clear policy to
boost the market.
Seagrass
restoration
projects,
demonstrably
enhancing marine
habitats, are
prime candidates
for generating
high-integrity
credits in this
emerging market.
?
15 CDC Biodiversité et al., 2024
Investment Opportunities in Seagrass Restoration16
Figure 4 - Integrated finance Model
To operationalize marine meadow
restoration through market-based
instruments, a network of key actors
collaborates across financial, ecological,
and regulatory domains. Blended finance?
comprising public and private banks,
businesses, and philanthropic sources?is
an approach which provides initial capital
through loans or donations to the business
or NGO responsible for seagrass restoration.
By upgrading the extent and condition
of seagrass meadows, the ecosystem
services which they provide; such as water
quality enhancement, carbon storage
and sequestration, coastal protection,
and biodiversity protection are likewise
improved, and can be monetized via
market mechanisms like biodiversity and
carbon credits, which are certified by a
third-party certifying company.
Businesses purchase these credits to meet
sustainability goals, creating a return on
investment while supporting ecological
outcomes. Beneficiaries of the restored
ecosystem, including tourism operators
and local communities, contribute
financially through service use, while
public administrations benefit from tax
revenues generated by these activities.
This integrated model aligns ecological
impact with financial viability, ensuring
long-term sustainability of marine meadow
restoration efforts.
Public Administration
Certifying company: launches to
the market the mechanisms
Ecosystem
Services
Business/NGO in
charge of the
restoration
? Biodiversity
Use of
services
Payment
Creates the service
Loan return
Return of
investment
Creation and
production
Financial
return
Creation and
production
Financial
return
Donations
Financial return
Concessions or
commercial loans
Pays for credits
Government
grants,
compensatory
payments or
others
? Carbon storage
? Coastal tourism
? Coastal protection
Services
(operation of
companies in
the area)
Sources of income:
Sponsorships, civil
society or corporate
donations.
Market mechanisms:
? Biodiversity credits
? Carbon credits
Business
Beneficiaries of Seagrass ES
? Scuba Diving
? Ecotourism/Recreation
Blended finance
? Banks (Public)
? Banks (Private)
? Business
Content developed by By Ecoacsa and EY Denkstatt
Investment Opportunities in Seagrass Restoration 17
By linking
environmental
data with
economic
activities,
investors can
make informed
decisions that
consider both
sustainability and
profitability.
?
Natural capital is the foundation of human
well-being and economic development.
The System of Environmental-Economic
Accounting (SEEA) Framework is the
international framework of natural capital
accounting. It defines natural capital as
the stock of renewable and non-renewable
assets or resources that combine to
generate a flow of benefits to people.
The ARTEMIS project is aligning with
the SEEA Ecosystem Accounting (SEEA
EA), which constitutes an integrated and
comprehensive statistical framework
for organizing data about habitats and
landscapes, measuring the ecosystem
services, tracking changes in ecosystem
assets, and linking this information to
economic and other human activity16. The
SEEA - EA has been in place since 2021 and
guides the work of ARTEMIS in all work
packages.
Understanding the scale of the opportunity,
assessing the potential returns, and
evaluating the viability and growth
potential of the project or business is
fundamental in the context of nature-based
investments like seagrass restoration.
To shed some light on initial estimates
of the market size of Posidonia oceanica
active and passive restoration activities,
we formulate the hypothesis that credits
may only be calculated when providing
additionality. In this sense, a Posidonia
credit only has value if the restoration action
generating it is additional, meaning that:
? The improvement in the meadow
condition (and the state of the Posidonia
meadow) would not have occurred
in the absence of the credit-financed
restoration project.
Accounting for value creation & monitoring
Market size
5.3
5.4
The SEEA - EA framework is at the heart
of the concept of the natural capital
approach.It is based on a standardized
and internationally recognized framework
which features an integrated view on
sustainability and climate change. It
allows users to identify interdependencies
between natural assets and resources,
including socio-economic impacts as
well as quantify the impacts to identify
mitigation measures. The spatial extent and
condition of ecosystems can be measured
whether they are protected or not.
This framework provides a clear picture of
the status and trends of natural resources,
helping to assess the potential impacts on
business and investment opportunities. By
linking environmental data with economic
activities, investors can make informed
decisions that consider both sustainability
and profitability.
? The action goes beyond existing legal
obligations (e.g., if a company is legally
required to restore damage, that doesn?t
generate additional voluntary credits
unless the restoration significantly
exceeds the obligation).
? The action would not have been
financially viable or would not have
been undertaken without the expected
revenue from credit sales
To evaluate not only the market size of active
restoration, but also passive restoration we
provide next different graphs for each type
of technique and its respective potential
market uptake.
Graphs show the different scenarios; which
account for:
16 UN, 2025
Investment Opportunities in Seagrass Restoration18
Scenario 1: Conservation Niche
Scenario 2: Marine Momentum
Scenario 3: Marine Restoration Markets Breakthrough
This scenario represents a conservative,
lower-bound estimate for the seagrass
market in the Mediterranean. It assumes
that:
? Only a small number of conservation-
focused organizations and marine
research institutions engage in
restoration or protection efforts.
? Regulatory frameworks for marine
credits remain underdeveloped, there are
no regulatory actions nor changes.
This scenario reflects a moderate, central-
upper estimate, assuming steady progress
in marine credit markets:
? EU and Mediterranean governments
begin to integrate seagrass restoration
into marine spatial planning and blue
economy strategies. There are regulatory
changes boosting restoration actions.
? Corporate nature targets become more
common, especially among tourism,
shipping, and coastal development
sectors.
This scenario envisions a high-growth,
transformative future for seagrass markets:
? Regulatory frameworks for driving ocean
protection are operationalized to meet
obligations under EU and international
biodiversity frameworks. There are
numerous regulatory actions and
changes boosting seagrass restoration.
? Financial innovation (e.g., blue bonds,
biodiversity-linked loans) channels
significant capital into ocean restoration.
? Widespread adoption of nature targets
? Nature credits linked to seagrass are
rarely used in corporate sustainability
strategies or green product claims.
? Restoration projects are localized, often
driven by NGOs or EU-funded pilot
programs, with limited private sector
involvement.
? Voluntary market demand remains low,
with low transaction volumes and limited
scalability. Credits are mostly symbolic
or used for CSR reporting by a few early
adopters.
? Standardized methodologies for
measuring and verifying seagrass
restoration outcomes are developed,
increasing investor confidence.
? Public-private partnerships emerge to
scale restoration efforts, especially in
marine protected areas (MPAs).
? Voluntary market demand from
sustainability-oriented companies
and regional policy support grows
steadily. Posidonia oceanica becomes a
flagship habitat in Mediterranean credit
schemes.
and mandatory disclosures drive
demand for marine credits.
? Tech-enabled monitoring (e.g., satellite,
AI, underwater drones) ensures
transparent and scalable verification of
outcomes.
? Voluntary market demand for
restoration rises exponentially. The
Posidonia oceanica market becomes a
core component of the Mediterranean
blue economy, with high liquidity, strong
investor interest, and integration into
global nature markets.
The marine
restoration
market is poised
for significant
growth between
2030 and 2050.
Alignment
between private
capital and public
policy is essential
to unlock the full
market potential.
?
Investment Opportunities in Seagrass Restoration 19
The marine restoration market is poised for
significant growth between 2035 and 2050.
Alignment between private capital and
public policy is essential to unlock the full
market potential.
Key Insights
? Credit Prices Increase: From ¤34,033
per hectare in 2035 to ¤41,221 per
hectare by 2050, reflecting rising
demand and ecosystem value.
? Active Restoration Dominates: By 2050,
active restoration accounts for over 60%
of market value across scenarios.
? Transformative Potential: The
breakthrough scenario drives market
size beyond ¤1.3 billion by 2050,
representing nearly 6x growth compared
to 2035 under limited development.
Figure 5 - Estimated Marine Restoration Market Evolution (2035-2050)
¤ million
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Passive restoration market size
Active restoration market size
2035 2050
¤2.12 b
¤467 m
¤668 m
¤162 m¤223 m
¤96 m
2035 20502035
Scenario 1 Scenario 2 Scenario 3
2050
Investment Opportunities in Seagrass Restoration20
Final takeaways
From Ecosystem Services to Revenue Streams
Tangible opportunities exist for deploying
capital into Mediterranean seagrass
restoration projects. Investors can consider
several distinct avenues:
? Targeting Maritime & Coastal Industries
with Blue Carbon+ Portfolios:Fund
restoration generating high-
integrityBlue Carbon credits bundled
with verified co benefits(biodiversity,
resilience) for shipping, ports, and
coastal developers needing climate and
nature-positive solutions.
? Integrating Restoration into
Regenerative Coastal Development
& Tourism:Incorporate seagrass
restoration as?Green Infrastructure?into
real estate or tourism projects to
enhance value, meet regulations, boost
There is a funding gap in Posidonia oceanica conservation of: ¤319 million euros per
year9. Hence, structuring seagrass investments in the Mediterranean region is urgent.
eco-appeal, and reduce climate risk.
Finance via PES or direct investment.
? Enhancing Sustainable Fisheries
& Aquaculture through Targeted
Funds:Invest in restoration proven
toboost nursery habitatsfor
commercial fish orimprove water
qualityfor shellfish farming. Generate
returns through improved yields or PES
from the sector.
? Creating Dedicated Seagrass
Restoration Impact Funds:Participate
throughdedicated investment
vehiclespooling capital for a diversified
portfolio of projects, leveraging
economies of scale and standardized
MRV (informed by ARTEMIS). Structure
via blue bonds or dedicated funds.
De-Risking Blue Investments: The Pillars of Credibility and
Transparency
For natural capital markets like seagrass
restoration to attract mainstream
investment, demonstrating credibility,
transparency, and robust governance
is of paramount importance. Several
interconnected elements provide this
necessary foundation. The necessary
factors that must be included in the
proposal to ensure credibility on the part of
the investor are on the one hand; an MRV
system for seagrass credits.
Such a system shall include variables to
be monitored: i.e., extent and condition of
the meadows, associated biodiversity and
blue carbon sequestered and absorbed.
Besides, a viable MRV should ensure
the frequency and method, for example
satellite images and in situ campaigns.
Lastly, on the external certification: some
key questions such as what standard? Who
validates it? Remain to be seen.
On the other hand, investors must ensure
that natural capital accounting is the
backbone of the proposal to guarantee
additionality; quantify the value generated;
and provide a robust system for monitoring
the progress of restoration success over
time.
Seagrass
restoration offers
opportunities for
innovation, value
creation, and
ocean leadership
with high-impact
potential.
?
9Blue Seeds, Mediterranean Posidonia Network, WWF Med & OFB, 2024;
6
Investment Opportunities in Seagrass Restoration 21
Seagrass Restoration: A Strategic Business Move
Investing in the restoration of
Mediterranean seagrass meadows is
more than an environmental gesture. It
represents a calculated, strategic decision
with the potential to:
? Generate Financial Returns:Access
growing carbon and biodiversity credit
markets, develop PES revenues.
? Mitigate Critical Risks:Enhance
coastal resilience, meet regulatory
requirements, manage reputational risk.
? Unlock Significant Co-
Benefits:Support fisheries, tourism, and
local communities.
? Gain Early-Mover Advantage:Lead in
the expanding blue finance sector.
All in all, seagrass restoration offers
opportunities for innovation, value
creation, and ocean leadership with high-
impact potential.
© MEDSEA Foundation
Investment
for protection
as a premium
marine asset
class
?
Investment Opportunities in Seagrass Restoration22
Acknowledgements
We gratefully acknowledge the
contributions of stakeholders and global
experts consulted between 2024 and 2025.
Ministry for the Ecological Transition and
Ministry for Ecological Transition and the
Demographic Challenge (Spain).
? Andalusian Government (Spain)
? Balearic Government (Spain)
? Redeia (Spain)
? Associació Vellmarí (Spain)
? Clean Wave Foundation (Spain)
? Association for Coastal Ecosystem
Services I ACES (UK)
? Mikoko Pamoja and Vanga Blue Forest
Projects (Kenya)
? Mediterranean Posidonia Network
(Europe)
? International Union for Conservation of
Nature I IUCN-Med (Europe)
? Endangered Landscapes and
Seascapes Program (Europe)
? Inter-American Development Bank
(Latin America and the Caribbean)
? Development Bank of Latin America
and the Caribbean I (Latin America and
the Caribbean)
? Coalition for Private Investment in
Conservation I CPIC (Global)
? Kreditanstalt für Wiederaufbau I KfW
Bank (Global)
? South Pole (Global)
? Sustainable Surf Foundation / SeaTrees
(Global)
? The Pew Charitable Trusts I Coastal
Wetlands and Coral Reef Project
(Global)
? UNDP The Biodiversity Finance
Initiative I (BIOFIN) Global
? World Economic Forum I (Global)
Investment Opportunities in Seagrass Restoration 23
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Investment Opportunities in Seagrass Restoration24
Glossary
Additionality: Proof that benefits would
not occur without the intervention. Non-
negotiable criterion for credit issuance and
investor validation.
De-risking: Techniques that reduce
perceived investment risk. Includes co-
financing, MRV assurance, legal clarity, and
credit pre-certification.
Ecosystem Services are the benefits that
natural ecosystems provide to humans,
supporting life, economies, and well-being.
Natural capital is the stock of renewable
and non-renewable natural assets or
resources that combine to generate flows
of benefits to people. It is quantified and
reported alongside financial capital under
SEEA-EA for ESG integration.
Natural capital markets are financial
systems that assign economic value
to nature?s resources and ecosystem
services, allowing them to be traded like
other commodities. These markets create
economic incentives for conserving and
managing ecosystems by recognizing their
financial worth.
Blue carbon is the carbon stored in coastal
and marine ecosystems, particularly
in mangroves, saltmarshes, algae and
seagrass in their biomass and sediments.
It also relates to carbon stored in seabed
sediments, fish and shellfish.
Blue carbon credits represent a financial
tool designed to mitigate climate change
by reducing, removing, or avoiding CO?
emissions through the conservation,
restoration, protection, and sustainable
management of coastal ecosystems
such as mangroves, seagrasses, and salt
marshes.
Biodiversity credits are units of
biodiversity value created through
conservation activities that have led to a
biodiversity gain. They are also defined
as innovative market-based instruments
designed to finance and promote
conservation efforts while ensuring
positive biodiversity outcomes that can be
bought or sold.
Market-Based Instruments (MBIs) are
economic tools that reflect environmental
costs and create incentives (e.g. credits,
taxes). MBIs enable profit-driven
restoration through regulated and
voluntary markets.
Target 19 of the Kunming-Montreal
Global Biodiversity Framework: focuses
on mobilizing and increasing financial
resources for biodiversity conservation.
It aims to substantially and progressively
increase biodiversity-related funding from
all sources?public, private, and innovative
financial mechanisms?ensuring that
nature-positive investments grow while
harmful subsidies are phased out.
Payment for Ecosystem Services (PES):
Agreements where beneficiaries of nature
(e.g. hotels, fisheries) pay ecosystem
stewards for conservation. PES schemes
create local revenue loops tied to tangible
service delivery (e.g. water clarity, fish
biomass).
Restoration is the process of assisting the
recovery of an ecosystem that has been
degraded, damaged, or destroyed. It refers
to the process of actively or passively
supporting the recovery of
i) Ecosystems towards good condition,
ii) Habitats up to the highest level of
condition attainable and its favourable
reference zone,
iii) Habitats or species to a level of
sufficient quality and quantity, or
populations to satisfactory levels, with
the aims of conserving or enhancing
biodiversity and ecosystem resilience.
Passive restoration can be defined as
mitigating human threats to favorize
natural regeneration when natural
recovery potential is high, making it the
most cost-effective approach.
Active restoration is the process of actively
assisting the reestablishment or increase
of organisms or depleted populations
through assisted regeneration or
reconstruction.
Investment Opportunities in Seagrass Restoration 25
Annex I
By implementing the following policy
recommendations, seagrass PES markets
may be operationalized faster in the
Mediterranean region and beyond.
This, in turn, could enable wider-scale
seagrass meadows restoration projects
to develop. Thereby helping to achieve
coastal conservation, while ensuring
environmental, economic, and social
benefits for local communities and the
ecosystems they depend on.
Recommendation
Area
Key Policy Actions
Strengthening Legal and
Institutional Frameworks
? Establish clear and secure tenure rights to ensure that beneficiaries and conservation
stakeholders have legal recognition in PES schemes.
? Develop a robust regulatory framework to integrate marine biodiversity and blue carbon
credits into environmental and economic policies.
? Standardize methodologies for measuring and verifying biodiversity and carbon sequestration
outcomes.
? Develop global standards and certified accreditation mechanisms.
Enhancing Governance ? Implement transparent monitoring and reporting mechanisms to measure PES project
impacts and ensure credibility.
? Establish clear standards and criteria for company involvement.
Advancing Research and
Data Availability
? Collect and disseminate accurate data on ecosystem services and their economic value to
support decision-making and incentive design.
? Expand pilot programs in marine protected areas to demonstrate the viability of biodiversity
and blue carbon credits.
Capacity Building
and Equitable Benefit
Distribution
? Implement training programs to strengthen the skills of local communities in managing PES
projects: ocean literacy, systematic reframing of restoration as an investment activity, reframe
investment for nature as a slow process and as the payoff of our ?dept? to future generations.
Exploring Innovative
Financing Models
? Develop impact investments and conservation-linked bonds tied to coastal tourism to
diversify funding sources.
? Promote participation in international biodiversity and carbon credit markets to expand these
schemes? reach.
Climate Change Adaptation
and Nature-Based Solutions
? Prioritize nature-based solutions as a sustainable alternative to traditional coastal protection
infrastructure.
? Promote the restoration of coastal ecosystems such as seagrasses to enhance ocean and
climate resilience to climate change.
Local Stakeholder
Participation
? Foster collaboration among governments, NGOs, and the private sector through public-
private partnerships to drive conservation and restoration efforts.
? Engage local communities as active participants in biodiversity and blue carbon credit
projects to ensure equitable benefit-sharing.
Equitable Benefit Sharing ? Ensure that economic benefits from coastal tourism, biodiversity, and blue carbon initiatives
are distributed.
Table 2 - Policy enablers for a PES market to develop
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