Location
Coastal regions worldwide
Stakeholders involved
Multinationals, small and medium-sized enterprises, smallholder farmers, coastal communities, national governments and philanthropic organizations
Lead organization
Scale
Indonesia is the 2nd largest producer of seaweed, responsible for 30% of world production. In the country, cultivating seaweed can generate up to 7-times more income than land-based cultures. In Madagascar, seaweed cultivation can lift smallholder farmers out of poverty in remote areas. Moreover, in Tanzania, 80% of seaweed revenues go to women, demonstrating how the crop has the potential to advance gender equality. This initiative leverages seaweed and the cultivation of marine species to create circular, low-impact marine systems that can enhance food security, restore biodiversity and empower coastal communities, with a focus on women.
of world production
more income than land-based cultures
of seaweed revenues go to women, demonstrating how the crop has the potential to advance gender equality
Co-investment model
Blended finance mechanisms are required to de-risk private sector investments for several reasons, including the costly returns which are not sufficiently attractive for commercial capital. A blended finance fund could be a critical way to unlock investment in the seaweed and IMTA sector to help involve the strategic use of catalytic capital, such as from climate funds or philanthropies. Additionally, it would help overcome key barriers to private investment by reducing risk, enhancing returns and building a pipeline of investments. It could also help involve mechanisms such as guarantees, insurance, currency hedging and technical assistance, further facilitating private sector investment. To date, the project has not implemented any large-scale commercial systems.
Impact
of VC investment in aquaculture and alternative seafood globally
of the production is in Asia and Africa, only 5% of these investments have been made in tropical seaweed
ha to regenerative and seaweed farming
if seaweed cultivation covered
of the ocean, the crop would absorb more than the world’s total emissions and start to cool down the planet.
Investment in the seaweed sector is <10% of VC investment in aquaculture and alternative seafood globally, and <5% of what’s needed. Equity investment in seaweed has been a minimum of USD $650 million since 2020. While 98% of the production is in Asia and Africa, only 5% of these investments have been made in tropical seaweed. The beneficiaries have mostly been smallholders and family farms that rely on seaweed for their livelihoods. While some regions have seen the development of cooperatives, large groups such as Cargill and IFF are transforming the product in developed economies. It is essential to invest in the relocalization of the production in developing and emerging economies.
In terms of regenerative/sustainable practices, Vietnam has announced a plan to convert 250,000 ha to regenerative and seaweed farming (co-location with shrimp, etc.). It would be easy to reach such an order of magnitude in each of the countries involved. As for climate impacts, by supporting local communities in activities ranging from climate adaptation to carbon sequestration (some seaweed grows 40 cm a day to reach 60 m in height) through to decarbonation of the economy (alternative to plastics and fertilizer use plus cutting methane emission from livestock), seaweed has huge potential. The largest farm set up in Namibia aims to absorb as much carbon as the entire emissions of the Netherlands (0.2 Gt), while current seaweed forests absorb the equivalent of total emissions from the UK and France together (almost 1 Gt). According ecologist Tim Flannery, if seaweed cultivation covered 9% of the ocean, the crop would absorb more than the world’s total emissions and start to cool down the planet.
Food loss and waste are minimal in seaweed. Once dried, seaweed keeps all its exceptional nutrients and can be kept for months with no need for a cold chain. The drying process is particularly inexpensive in tropical countries as farmers can do it naturally on the beach. As seaweed does not require any freshwater to grow and can naturally desalinize seawater, the potential for freshwater management is enormous. Additionally, according to researchers at Wageningen University, if seaweed cultivation covered 2% of the ocean through permaculture, it would ensure 12 billion people have sufficient protein intake, with no need for animal or plant-based proteins from land.
Other benefits include women’s empowerment, like in Zanzibar where it has contributed to women’s empowerment and gender parity over the last 30 years, when farmers started seaweed cultivation.
Levers and enablers
This initiative pulls policy, regulation and governance levers. It also uses blended finance mechanisms to de-risk investments and technology through integrated multi-trophic aquaculture (IMTA) models. The Global Seaweed Coalition is an example of a knowledge-sharing platform that is a key enabler of multilateral coordination of the initiative.
Barriers
A scientific gap remains, as the initiative has not been able to identify and domesticate the most profitable seaweed species adapted to local conditions. Moreover, advocacy and communication are essential to the change required, in particular to enable capacity building and training. Financial obstacles also remain, with scaling required to support specific projects benefiting fragile communities.
Lessons for scaling
- Shift human behaviors to scale this model to increase seaweed consumption;
- Invest in innovation to address scientific gaps and optimize seaweed cultivation.
