Institutional Capacity Building is considered here as one of the main types of Capacity Building efforts, along with Human Capacity Building. Both are closely inter-related and complement each other.

Institutional Capacity Building addresses Capacity Building beyond the provision of education and training of professionals. It aims to enhance the capacity of governments, businesses, non-governmental groups and communities to plan and manage the coast efficiently and effectively. It also aims to improve institutional arrangements for coastal management. This implies addressing Capacity Building on a long-term, strategic level. Concepts such as leadership, awareness, and constituency building are part and parcel of institution building.

There are several dimensions regarding institutional development: one at the EU level, and the other at the national/regional/local level.