Timor Leste.
BLUE BUILDER
Building Capacity and Building Momentum
BLUE BUILDER
Building Capacity and Building Momentum
National Snapshot.
Timor-Leste is actively developing its blue economy, focusing on sustainable ocean-based sectors such as ecotourism, aquaculture, and renewable energy.
Through initiatives like the National Oceans Policy and, more recently, the Blue Economy Policy and Action Plan, the government aims to diversify the economy, promote social inclusivity, and achieve long-term ecological balance.
With growing institutional engagement and capacity-building efforts, Timor-Leste is demonstrating clear momentum, positioning itself as a Blue Builder, a nation laying the groundwork for a sustainable and inclusive ocean economy.
Implementation Progress
Implementation Progress
Building momentum
As a young nation, Timor-Leste has made notable progress in developing its blue economy, particularly in the areas of social and natural capital. This is reflected in the recent formulation of a national blue economy policy and concrete conservation actions, such as the establishment of marine protected areas (MPAs). However, as the newest member of ASEAN, Timor-Leste remains in the early stages of development across financial, physical, and human capital dimensions. Current national efforts are focused on laying the foundation for a sustainable economy, guided by the Strategic Development Plan 2011–2030, with the blue economy envisioned as a key driver of nature-positive growth.
The Government of Timor-Leste (GoTL) is committed to maximizing the potential of its ocean-based sectors through a series of strategic initiatives. These include the development of a Blue Economy Policy and Action Plan, the establishment of a National Marine Park around Ataúro Island, the creation of a Marine Education Centre, and the implementation of marine spatial planning. These efforts are designed to promote sustainable ocean development and support long-term ecological balance (GFTM, 2025).
Timor-Leste’s National Oceans Policy (Política Nacional dos Oceanos de Timor-Leste – PNO), approved by Government Resolution 27 of 2023, identifies the growth of a diverse blue economy as a central objective. The country envisions its oceans and coasts playing a transformative role in national development—not only through traditional sectors like coastal fishing, oil and gas, and shipping, but also through emerging industries such as nature-based ecotourism, offshore fishing, aquaculture, and renewable energy. A key emphasis of the blue economy approach is inclusivity, ensuring that all citizens, especially vulnerable communities, benefit from sustainably managed ocean resources.
Recent milestones include the principal approval of the Blue Economy Policy by the Council of Ministers on 25 June 2025, followed by public consultations on the draft Policy and Action Plan from September to October 2025 (Government of Timor-Leste [GoTL], 2025). The policy outlines integrated actions to promote economic diversification, social inclusion, and environmental sustainability. Once formally adopted, it will serve as a cornerstone for Timor-Leste’s transition toward a resilient and inclusive ocean economy.
Explore how Timor Leste is positioned for each of the
Blue Economy Capitals.
Financial
Capital.
Financial Capital.
Timor-Leste is in the early stages of establishing mechanisms to support its blue economy development. While practical financing instruments are not yet in place, the government is actively exploring options such as blue bonds, debt-for-nature swaps, and leveraging existing climate finance tools to support ocean-based sectors. In collaboration with the UN Joint SDG Fund and UNDP, Timor-Leste is developing an Integrated National Financing Framework (INFF) to strategically mobilize public and private finance for sustainable blue growth and economic diversification, particularly in the post-COVID recovery context (UNDP, 2023).
Despite this progress, several challenges remain. On the supply side, investor information gaps and high perceived risks contribute to elevated financing costs. On the demand side, limited capacity, low awareness, and a lack of bankable projects hinder access to funding (UNDP, 2023).
Physical
Capital.
Physical Capital.
Timor-Leste’s blue infrastructure is progressing from its early stages, particularly in the development of its seaport facilities. The country currently operates two major ports: the Port of Dili and the newly inaugurated Tibar Bay Port. The Port of Dili, while modest in scale, serves domestic and international cruise ships and features a 280-meter wharf capable of berthing up to three vessels. In September 2022, container operations were transferred to the Tibar Bay Port—a modern, high-capacity facility that now serves as Timor-Leste’s primary maritime logistics hub.
Tibar Bay Port was developed through a public-private partnership between the Government of Timor-Leste and Timor-Port, a subsidiary of Bolloré. The initial phase of the project cost US$ 280 million, with a total investment expected to reach US$ 500 million over 30 years. The port was constructed by China Harbour Engineering Company and is expected to significantly enhance Timor-Leste’s regional connectivity, linking it to global trade networks and expanding access to markets in agriculture, tourism, fisheries, and other sectors (GOTL, 2022).
Despite these advancements, infrastructure gaps remain, particularly in supporting industrial-scale fishing. Current facilities are limited to small landing sites, which restrict the volume of catch and hinder domestic supply. With competing priorities and limited resources, there is growing pressure on the petroleum fund to finance infrastructure projects. Addressing gaps in port operations, maritime transport, and sustainable tourism infrastructure will be essential to unlocking high-value sectors such as fish processing and advancing Timor-Leste’s blue economy transition (Iyengar & Swain, 2024).
Human
Capital.
Human Capital.
Timor-Leste currently faces significant human capital challenges that limit its ability to fully harness the potential of the blue economy. Widespread poverty, chronic malnutrition, and limited access to formal education, particularly in rural and coastal communities, have constrained the development of a skilled and informed workforce. Language barriers and low school enrolment rates further hinder educational outcomes, while undernutrition among children remains a persistent issue affecting long-term human development (World Bank, 2018).
The lack of engagement in blue economy-related industries underscores the need for targeted capacity-building, education, and community outreach. Strengthening human capital through inclusive training programs, environmental education, and support for local entrepreneurship will be essential to ensure that Timor-Leste’s population can actively participate in and benefit from sustainable ocean development (UNDP, 2023).
Social
Capital.
Social Capital.
As a relatively young nation, Timor-Leste faces the ongoing challenge of building strong institutional capacity and coherent policy frameworks. Despite these challenges, Timor-Leste has taken strategic steps to strengthen ocean governance. The approval of the National Oceans Policy in 2023 and the ongoing development of the Blue Economy Policy and Action Plan mark significant milestones. These initiatives aim to transform the country’s ocean-based development model through an integrated approach that promotes sustainable resource use, improves coastal community livelihoods, and protects marine ecosystems. The policy is structured around three pillars, social, economic, and environmental, and outlines concrete measures to enhance governance, recognize marine natural capital, and promote sustainable ocean activities.
Implementation of the Blue Economy Policy will be coordinated across government institutions, with the Land and Maritime Boundaries Office playing a central role in policy development, coordination, and stakeholder engagement. The policy promotes a multisectoral and inclusive approach, encouraging participation from government agencies, civil society, academia, the private sector, media, religious groups, and local communities. This inclusive governance model is designed to ensure that all stakeholders contribute to and benefit from the sustainable development of Timor-Leste’s ocean economy (GoTL, 2025).
Natural
Capital.
Natural Capital.
Timor-Leste recognizes the importance of a healthy ocean as a foundation for successful blue economy development and has taken meaningful steps to conserve and protect its marine ecosystems. These efforts include waste management initiatives, the promotion of sustainable fisheries, habitat restoration, and the establishment of marine protected areas (MPAs). These actions provide a solid starting point for further development.
Timor-Leste has designated seven MPAs across the country, although the absence of government-approved management plans limits effective implementation and evaluation. Nonetheless, the country made notable progress at the 2016 Conference of the Parties, where Ataúro Island and Nino Konis Santana National Park were recognized as Ecologically or Biologically Significant Areas (EBSAs), underscoring their critical role in biodiversity conservation (GoTL, 2025).
To support sustainable development on Ataúro Island, the Ministry of State Administration established the Ataúro Administration Authority and launched the Ataúro Special Development Fund, allocating USD 3 million to address economic and environmental needs, preserve cultural heritage, and serve as a model for coastal community development (Joint SDG Fund, 2025).
While central budget allocations for marine conservation remain limited, NGOs and private non-profit actors play a vital role in supporting local capacity-building and long-term financing strategies. For example, Conservation International (CI) Timor-Leste is planning to establish two new MPAs in Lautém and Liquiçá, backed by a USD 1.5 million grant from Margaret A. Cargill Philanthropies. These initiatives focus on protecting dugong and whale habitats and align with the government’s blue economy vision (Tatoli, 2025). CI also continues to expand scientific research, supports eco-tourism, builds a network of properly enforced and resourced MPAs, and builds local stewardship capacities (UNDP, 2023).
Integrated Coastal Management (ICM) has been implemented in three northern municipalities, Dili, Manatuto, and Liquiça, covering approximately 30.49% of the northern coastline (PEMSEA 2019). These continued efforts will help advance Timor-Leste’s blue economy through a more integrated and inclusive approach.
Implementation Capacity
Implementation Capacity
building capacity
Timor-Leste envisions a diverse and vibrant blue economy as a cornerstone of its future development, with oceans and coasts playing a critical role in sectors such as fisheries, aquaculture, shipping, oil and gas, renewable energy, and nature-based ecotourism.
While its blue economy capacity is currently at a nascent stage, the country benefits from a strong natural resource base and growing interest in sustainable ocean development.
Institutional capacity remains limited, but Timor-Leste’s commitment to leveraging its marine assets and engaging in regional initiatives provides a promising foundation for progress.
