Seychelles shows how small island states can turn ocean stewardship into a model for climate finance, equitable growth, and global blue governance
This piece is part of the series 'Governing the Oceans: Rethinking Access and Equity'
Despite covering two-thirds of the planet, oceans have often been treated as an afterthought for global climate policymakers. Yet, oceans lie at the heart of sustainable development, underpinning economic prosperity, social equity, and environmental stability by sustaining livelihoods, providing food security, and regulating the climate. These water bodies have the potential to sequester carbon dioxide at rates up to four times greater than terrestrial forests, linking them inextricably to the future prosperity and well-being of humanity. Small Island Developing States (SIDS) like Seychelles have aligned their development agendas with Sustainable Development Goal 14 (SDG 14), demonstrating how effective ocean governance may lie in integrating climate action, ecosystem preservation, and economic opportunity.
Seychelles launched a Blue Economy Framework in 2018 to align sustainable ocean-based economic growth with environmental stewardship and social development. The model recognises the importance of preserving the marine environment while advancing circular economy approaches that reduce waste and promote resource efficiency. Ocean sustainability is closely tied to economic stability in Seychelles, with a conservative estimate placing the country’s blue economy at 30.6 percent of GDP, valued at US$ 495 million, while wages generated accounted for 10.4 percent of 2018 GNI.
Small Island Developing States (SIDS) like Seychelles have aligned their development agendas with Sustainable Development Goal 14 (SDG 14), demonstrating how effective ocean governance may lie in integrating climate action, ecosystem preservation, and economic opportunity.
In this vein, coastal ecosystems—encompassing seagrass meadows, mangroves, and coral reefs—provide significant carbon sequestration and coastal defence services. Yet, these ‘blue carbon sinks’ are under significant threat; since the 1940s, the world has lost between 30 and 50 per cent of its mangrove forests, while seagrass meadows have declined by roughly half since the 1990s.
Seychelles hosts one of the world’s largest seagrass meadows, also recognised as one of the largest carbon dioxide sinks. Findings from Seychelles’ seagrass mapping exercise revealed that these sinks sequester almost three times as much carbon as the transport sector emits. The value of Seychelles’ ecosystem services associated with blue carbon sinks was estimated at US$ 48 billion, which was 30 times Seychelles’ 2018 GDP. The country has taken proactive steps to protect this ecological and economic infrastructure, including committing to fully protecting its mangrove and seagrass ecosystems by 2030.
As a high-income country with the highest GDP per capita in Africa, Seychelles struggles to access concessional climate financing to deal with the escalating impacts of climate change. The archipelago comprises a total of 455 km² of land spread across 115 islands, but boasts an Exclusive Economic Zone (EEZ) of approximately 1.37 million km². In linking marine protection with blue financing options, Seychelles chose to integrate marine conservation with its national development and financing agenda.
As a high-income country with the highest GDP per capita in Africa, Seychelles struggles to access concessional climate financing to deal with the escalating impacts of climate change.
The country issued the world’s first blue bond in 2018, valued at US$ 15 million. This bond paved the way for a blended financing model that has seen the market grow to US$15.25 billion in 2025. The state also implemented a debt-for-nature swap with the support of the Paris Club, enabling it to buy back US$30 million in debt to reinvest in conservation and fisheries sustainability efforts. Seychelles also designated 30 per cent of its EEZ as a Marine Protected Area. The country legislated its Marine Spatial Plan in 2025, meeting the United Nations Convention on Biological Diversity’s 30×30 target ahead of schedule. The government has set up the Seychelles Marine Spatial Plan (SMSP) Initiative to protect and preserve biodiversity hotspots while ensuring sustainable economic development within the country’s EEZ. Seychelles is also the first country to achieve ‘Compliant’ status under the global Fisheries Transparency Initiative (FiTI) Standard.
With a population of only 120,000, much of Seychelles’ economic activity is concentrated in blue economy sectors, including established industries such as fisheries, hydrocarbons, tourism, ports and shipping, as well as emerging sectors such as aquaculture, mineral extraction and renewable energy.
The country remains socioeconomically unequal, with higher levels of inequality than many of its high-income peers. This presents challenges for inclusivity; women remain underrepresented in blue economy sectors, with the overall workforce comprising roughly 64 percent men and 36 per cent women. While efforts have been made to train and empower women in these sectors, examples of success remain limited. Youth unemployment is approximately three times the national unemployment rate, with young women facing higher unemployment rates than their male counterparts.
The government has duly recognised that protection must support those most dependent on the ocean’s resources. In 2025, a new Fishers’ Pension Scheme was finalised for the roughly 800 artisanal fishermen who sustain the country’s artisanal fishing sector.
The West Asian crisis is significantly affecting Seychelles' tourism sector; a total of 23,746 visitors arrived in Seychelles in March, representing a 37.2 per cent decrease compared to March 2025. Given the dominance of Micro Small Medium Enterprises (MSMEs) in the tourism sector, the Seychelles Revenue Commission implemented tax relief measures to ease the financial burden of businesses within the sector.
Youth are increasingly recognised as future innovators and leaders in the ocean economy, reflected in targeted efforts to strengthen youth ocean literacy, raise public awareness, and support youth entrepreneurship, and exemplified through initiatives such as the Blue Economy Business Challenge 2026.
Opportunity is also being extended in emerging sectors. The aquaculture sector has received renewed focus through the establishment of a broodstock acclimation and quarantine facility, a sea urchin research facility and the re-establishment of a prawn farm on one of the outer islands. NGOs are also participating in the BE sectors in innovative ways; the first land-based aquaculture facility in Africa was launched last year, with this Assisted Recovery of Corals facility focusing on climate change adaptation.
Seychelles has not stood alone in its blue economy journey but has made deft use of its diplomatic and multilateral relations at both the regional and international levels to ensure that island states have not only a place at the table but also the power to shift blue growth to include elements of blue fairness.
Seychelles is also drafting its first blue carbon policy. This showcases the country’s anticipation of regulatory risks and its proactive approach to strengthening regulatory frameworks for emerging sectors such as blue carbon offset markets.
On the domestic front, the state renegotiated its agreement with the European Union this year, drafting a new protocol that provides €5,750,000 per year, including €3,000,000 annually to support Seychelles’ sustainable fisheries and maritime policy, thus boosting equitable benefit-sharing.
Seychelles is also drafting its first blue carbon policy. This showcases the country’s anticipation of regulatory risks and its proactive approach to strengthening regulatory frameworks for emerging sectors such as blue carbon offset markets.
In parallel, consideration has been given to responsible innovation and accountability. Regionally, Seychelles and Mauritius share a historic joint venture agreement to co-manage the seabed of the Mascarene Plateau, allowing both countries exclusive access to resources such as minerals, oil, offshore energy, and gas. Given the potential for expanded fisheries and mineral exploration, both countries stand to boost their GDPs and create new economic streams. Thus, the agreement signals the commitment of neighbouring island states to work together.
Globally, Seychelles was the first country in Africa and the third in the world to approve the ratification of the High Seas Treaty, aimed at ensuring the sustainable use and conservation of marine biological diversity in areas beyond national jurisdiction.
Seychelles has distinguished itself by leveraging global and regional partnerships to challenge traditional perspectives on environmental protection and climate finance.
Seychelles’ story reflects its determination to redefine itself as a ‘Big Ocean State’, demonstrating that ambitious ocean governance may be within reach even for island nations. Nonetheless, it highlights a broader challenge shared by many small states: the desire to protect marine ecosystems often outpaces available technical, human, and financial capacity. Seychelles has distinguished itself by leveraging global and regional partnerships to challenge traditional perspectives on environmental protection and climate finance. In doing so, it offers a compelling model for how small states can take ownership of their development and help shape the future of ocean governance.
Malshini Senaratne is a Senior Lecturer and Assistant Head of Department in the Faculty of Business and Sustainable Development at the University of Seychelles.
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Malshini Senaratne is a lecturer at the University of Seychelles and a Director with Eco-Sol Consulting Seychelles. Her research interests include entrepreneurship Blue Economy ecosystem ...
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