Luxembourg is partnering with the European Investment Bank (EIB) to contribute €5 million toward helping small island nations fight climate change, according to the original press release. The money will go into the Outrigger Impact Fund I, a $100 million fund focused on ocean-based projects in Small Island Developing States (SIDS).
Small island nations are hit hard by climate change – rising seas and extreme weather threaten their survival, but they struggle to get the money needed to protect themselves. These countries manage over 30% of the world’s oceans through their territorial waters, yet they receive much less climate funding than other developing nations.
The new fund will invest in what experts call the “blue economy”—projects that use ocean resources sustainably. This includes sustainable fish farming, ocean conservation, ecotourism, and offshore renewable energy.
“This investment reflects our ambition to drive more capital towards climate resilience where it is most urgently needed,” said Luxembourg Finance Minister Gilles Roth, explaining that the goal is to “de-risk innovative projects in the blue economy and mobilise private finance at scale.”
Luxembourg’s contribution takes the form of junior equity, which means they accept more risk to attract private investors who might otherwise stay away. The fund aims to multiply investments through leverage, getting more value from each public dollar spent. Environment Minister Serge Wilmes noted that “the blue economy offers an opportunity for SIDS to help adapt to climate change, protect and restore nature, while generating sustainable income for the most vulnerable communities.”
EIB Vice-President Ambroise Fayolle and Outrigger Impact Managing Director Simon Dent shared the news about Luxembourg’s contribution at the 2025 UN Ocean Conference in Nice, France. The fund will support small and medium-sized businesses developing innovative approaches to sustainable ocean use, from clean transport to coral reef protection to reducing plastic pollution.
