World Bank Funds Cancún Pilot to Turn Sargassum Into Cosmetics

Cancún, Quintana Roo — The International Finance Corporation (IFC), the World Bank’s private-sector lending arm, is funding a pilot project in Cancún to turn sargassum into cosmetics, part of an effort to transform the seaweed choking Caribbean beaches into a commercial product.

The project uses technology to extract compounds from the macroalgae and develop ingredients for cosmetic and dermatological use. Joel Sánchez, an IFC operations officer, said the initiative is designed to create enough commercial demand to help address the ecological problem affecting the coasts of the Mexican Caribbean and the Dominican Republic.

“We are supporting a pilot test of this emulsion,” Sánchez said. “The idea is that if it succeeds, we could scale it up, and that would create an appetite for collecting sargassum. It would become more of a business opportunity.”

The pilot is in its initial phase of technical testing, with the first results expected next year. It is backed by the government of Spain, which supports the management and final disposal of the biomass. The IFC said it does not set a cap on financing and complements local banks with market-rate loans and sustainability technical assistance. The institution has already allocated about $70 million to the region’s tourism sector.

Beyond extracting raw material, the IFC is seeking to channel private capital into the hotel industry to create jobs and reduce environmental and social risks. It has signed a memorandum of understanding with Mexico’s Tourism Secretariat (Sectur) to raise environmental standards across the Yucatán Peninsula.

The corporation is also evaluating new projects with Spanish and Mexican business groups to scale up sargassum processing if next year’s analyses confirm the product’s technical viability.