The International Finance Corporation (IFC), a member of the World Bank Group, has announced the successful closing of an investment in Carbonwave, a company that transforms sargassum seaweed into commercially viable agricultural biostimulants and cosmetic emulsifiers. The initiative aims to convert a growing climate and environmental threat into a job‑creating industry with high economic and ecological value.
Sargassum, once confined to isolated parts of the Atlantic Ocean, has started proliferating uncontrollably across the Caribbean, overwhelming beach ecosystems. Its accumulation and decomposition release methane into the atmosphere, leach heavy metals into groundwater, harm tourism, and block sea turtle hatchlings from reaching the ocean. The financial and ecological costs of sargassum cleanup are substantial, with the U.S. Environmental Protection Agency reporting USD 120 million in direct collection costs in 2018 alone. Broader socioeconomic impacts, including tourism losses and damage to coastal infrastructure, significantly increase the overall economic burden.
Carbonwave addresses this challenge by transforming sargassum into valuable materials, creating economic incentives for its responsible collection and processing. This approach prevents harmful decomposition while turning waste into a resource. Geoff Chapin, CEO of Carbonwave, emphasized that the company’s technology supports regenerative agriculture and sustainable manufacturing, demonstrating that climate resilience and economic growth can coexist. IFC’s investment validates Carbonwave’s model and supports its expansion into vulnerable coastal regions.
Sanaa Abouzaid, IFC Regional Director for México and Central America, highlighted that Carbonwave is helping create a new, job‑generating industry while delivering climate, biodiversity, and economic benefits, particularly for women and vulnerable communities dependent on healthy coastal ecosystems. By supporting tourism- and fishing-dependent economies, the project protects local livelihoods and contributes to biodiversity conservation by reducing sargassum accumulation in coastal waters, which can suffocate corals, seagrasses, and marine life.
Carbonwave operates processing facilities in Puerto Morelos, Mexico, and Puerto Rico. IFC’s investment consists of a US$3 million convertible loan with a four-year maturity, supporting the company’s operations, research and development, and commercial scale-up. Carbonwave builds localized supply chains in the Caribbean and Mexico, improving soil health and crop yields through its flagship biostimulant, SargaPower, while generating measurable economic and environmental impact.
IFC, as the largest global development institution focused on private-sector solutions in emerging markets, leverages capital, expertise, and partnerships to create opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions, mobilizing private capital to promote sustainable economic growth and climate-positive solutions worldwide.
