What is the blue economy?
The blue economy, or the ocean economy, is a term used to describe the economic activities
associated with the oceans and seas. The World Bank defines the blue economy as the
“sustainable use of ocean resources to benefit economies, livelihoods and ocean ecosystem
health”. The activities commonly understood to represent the blue economy include maritime
shipping, fishing and aquaculture, coastal tourism, renewable energy, water desalination,
undersea cabling, seabed extractive industries and deep sea mining, marine genetic resources,
and biotechnology.
The blue economy is estimated to be worth more than US$1.5 trillion per year globally. It
provides over 30 million jobs and supplies a vital source of protein to over three billion
people. While it has been eclipsed in recent years by a greater focus on the ‘green economy’
(that is, the role of primarily land-based activities in the economic transformation required to
transition to a low-carbon future), a renewed interest in the blue economy (also sometimes
referred to ‘blue growth’) is indicated by the OECD prediction that the ocean economy may
double in size to $3 trillion by 2030.
There is also increasing investment by governments and companies in nature-based
solutions to climate change provided by the oceans. These include carbon sequestration,
coastal protection, biodiversity conservation and waste management.
How do the oceans contribute to sustainable development?
There is a Sustainable Development Goal (SDG) dedicated to oceans: number 14, ‘Life
Below Water’ aims to conserve and sustainably use the oceans, seas and marine resources. It
sets out seven targets for a sustainable ocean economy by 2030. So far, progress towards
reaching these goals has been limited. There have been some small improvements in the
sustainability of fisheries and an expansion of Marine Protected Areas (MPAs), but these
cover only around 7.5% of the oceans.
How are the oceans governed?
Governance of the ocean and the blue economy is both complex and potentially difficult to
implement, which has led to fragmented approaches to the sharing of marine resources
between nations and impeded understanding of the environmental impacts of the blue
economy. Ocean-related regulations apply to Exclusive Economic Zones (EEZs), which
include territorial waters, archipelagos, and the area of sea that extends 200 nautical miles out
from countries’ coastlines. The remaining area is called the High Seas (or ‘open ocean’) and
accounts for 64% of the world’s oceans.
In March 2023, an historic agreement was reached at the United Nations for a High Seas
Treaty which aims to place 30% of the world’s oceans into MPAs to protect wildlife and
ensure equal access to marine genetic resources. It also allocates more funds to marine
conservation and will mean new rules for deep sea mining. The Treaty will establish a
Conference of the Parties (CoP) for oceans, in the same vein as
the climate and biodiversity COPs.
Other international agreements on ocean governance that impact the blue economy
include: the United Nations Convention on the Law of the Sea (UNCLOS), which sets out the
legal regime for activities on the oceans and seas along with State responsibilities; the Port
States Measures Agreement (PSMA), which seeks to prevent, deter and illuminate Illegal,
Unreported and Unregulated (IUU) fishing through management at Port States; Guidelines
for Small Scale Fisheries; and IMO 2023, the International Maritime Organization’s
regulations on global shipping.
How can action on the oceans benefit the climate?
We know that the oceans play an important role in regulating the Earth’s temperature,
absorbing carbon dioxide, and supporting biodiversity and livelihoods. But we are only just
starting to recognise the extent to which the blue economy impacts climate change.
The High Level Panel for a Sustainable Ocean Economy estimates that the ocean economy
can deliver 21% of the greenhouse gas emission reductions needed to meet the Paris
Agreement target of limiting average global temperature rise to 1.5°C by 2050. It also
suggests that a significant increase in sustainable food production from the oceans (often
called ‘blue food’, and including fisheries, seaweed and fish aquaculture and mariculture)
could meet the demands of a growing global population and reduce the pressure on land-
based food systems. Positive climate benefits can also be generated through ocean finance (or
‘blue finance‘) – the financial tools and investment required to reach a sustainable ocean
economy – through which every $1 invested in ocean action could return $5 in benefits.
40% of the world’s population live near coastal areas, more than 3 billion people
utilize the oceans for their livelihood, and 80% of world trade is achieved using the
seas. The oceans, seas and coastal areas contribute to food security and poverty
eradication. And yet, the oceans are under severe threat by human activities, where
economic profit are at the expense of environmental degradation. Acidification,
pollution, ocean warming, eutrophication and fishery collapse are just some of the
examples of the consequences on the marine ecosystems. These threats are
detrimental to the planet and are long-term repercussions that demand urgent
action to protect the oceans and the people who depend on them.
Sustainable Development Goals 14:
sustainable use of the oceans
In 2015, all United Nations Member States adopted a development policy on
sustainability which centers around the 17 Sustainable Development Goals (SDG).
The 17 goals provide a global blueprint for peace and prosperity of people and the
planet and are set to be achieved by 2030. Goal 14, labelled Life Below Water,
concerns conservation and sustainable use of the oceans, seas and marine resources
for sustainable development, and demands international cooperation for the oceans
to get back in balance.
Reaching Goal 14 requires universal action to protect the planet and calls for
implementation of international forces, through institutional and legal frameworks.
Progress has been made, but the targets by 2030 remain a long way off,
highlighting the need for action today.
The oceans and seas are a key source to food, energy and minerals, and are being
used more and more for multiple sectorial activities. Common examples are
fisheries and aquaculture, and the processing and trade of these resources. The
maritime transport also plays a big role in the globalized market in the form of
containerships, tankers, and ports for the vessels. Furthermore, coastal tourism is
the largest business within ocean related activities in terms of employment.
For the past few years, the use of term “Blue Economy” has increased and has e.g.
been used by the UN, EU, OECD and the World Bank to explain the nexus
between sustainability, economics and the ocean. In fact, the UN notes that the
Blue Economy is exactly what is needed to implement SDG 14, Life Below Water.
What is a Blue Economy?
“Blue economy” is an economic term linked to exploitation and conservation of
the maritime environment and is sometimes used as a synonym for “sustainable
ocean-based economy”. There is, however, no consensus on the exact definition
and the field of application depends on organization that uses it. The UN first
introduced “blue economy” at a conference in 2012 and underlined sustainable
management, based on the argument that marine ecosystems are more productive
when they are healthy. This is backed up by scientific findings, showing that the
earth’s resources are limited and that greenhouse gases are damaging the planet.
Furthermore, pollution, unsustainable fishing, habitat destruction etc. harm the
marine life and are increasing day by day.
The UN specifies Blue Economy as a range of economic activities related to
oceans, seas and coastal areas, and whether these activities are sustainable and
socially equitable. An important key point of Blue Economy is sustainable fishing,
ocean health, wildlife, and stopping pollution. The UN iterates that the Blue
Economy should “promote economic growth, social inclusion, and the preservation
or improvement of livelihoods while at the same time ensuring environmental
sustainability of the oceans and coastal areas”. This points out the importance of
global cooperation across borders and sectors. This also indicates that
governments, organizations and decisionmakers need to join forces to ensure that
their policies won’t undermine each other.
The use of the seas, the oceans and the coastal areas has accelerated the past years.
The OECD describes the ocean as the next great economic frontier as it holds
potential for wealth and economic growth, employment and innovation. And while
the economy includes existing businesses such as fisheries, coastal tourism and
shipping, it also focuses on the development of new emerging sectors that were
next to non-existent 20 years ago e.g. blue carbon sequestration, marine energy and
biotechnology; sectorial activities that create potential and opportunities for
training and employment, but also fight climate change.
Benefits of blue economy: create green energy
and fight climate change
Blue Economy has the power to obtain better governance of marine ecosystems,
lower emissions, a more just health standard and be a player in fighting climate
change. In the recent years, emerging sectors within energy have grown
exponentially, and oceans are popular sites for renewable energy. Alternative
energy sources such as wind energy, hydropower and tidal energy are fitting for
marine environments. Especially offshore wind (including floating wind turbines)
is fast growing and has around for many years – the first offshore wind park
erected in 1991 in Denmark, and the quantity of offshore wind farms was 162 in
2020, according to WFO. The report Offshore Wind Outlook 2019 by the
International Energy Agency (IEA), offshore wind power has the potential to
generate more than 18 times the global electricity demand today. Wind farms
require specific
Offshore wind energy has become more and more popular around the world.
professions and therefore create jobs in construction, maintenance and
administration.
Offshore wind energy is only one example of benefits of Blue Economy. Others
are offshore aquaculture (an emerging approach to fish farming), wave and tidal
energy, seabed mining and blue biotechnology, which uses, among others,
shellfish, bacteria and algae for development in health care and energy production.
Moreover, existing industries, such as
shipping and tourism, have potential of growing and become greener with new
technologies.
To support the Blue Economy, both the European Union and the United
Nations have developed a long-term strategy that aims to support facilitate
sustainable ocean-based economic benefits by implementing climate-resilient and
inclusive blue economy policies that reduce human impact. Some countries have
also taken it upon themselves to implement strategies and policies that support the
idea of Blue Economy. Among these are Denmark and Norway that have a clear
focus on the shipping industry.
Nordic countries: implementation in shipping
NORWAY: THE GREEN SHIPPING PROGRAMME
According to the EU, 13% of the overall EU greenhouse gas emissions from the
transport sector are due to shipping industry. Norway has undertaken to reduce its
greenhouse gas emissions by at least 40% by 2030 compared with the reference
year 1990, and for the Norwegian fleet to be climate neutral by 2050. These goals
provide a basis for The Green Shipping Programme which aims to seek solutions
for sustainable and efficient shipping. The programme is an institutional
collaboration between authorities and the private sector, which will accelerate
economic growth, increase competition, create new jobs and of course cut
emissions.
The programme is made of studies and projects and are crucial in making the
Norwegian shipping greener. Around 20 large-scale projects have been introduced,
including development of green ports and shuttle tankers running on liquified
natural gas. Seven of the projects have been implemented or are under
construction.
DENMARK: “TOWARDS ZERO”
Like Norway, Denmark has also taken steps towards a greener and more
sustainable shipping industry with the strategy “Towards Zero”. Danish Shipping,
a business and employers’ organization for Danish Shipping, is the largest single
export industry in Denmark and has launched “Towards Zero” which aims to make
shipping climate neutral by 2050. Moreover, Danish Shipping works hard on
defeating political and financial barriers that hinder climate neutral shipping.
Nordic countries have taken it upon themselves to pollute as little as possible in the shipping field.
The initiative is committed to accelerate the transition of green shipping regarding
“Fit for 55” and goals set by IMO, a maritime agency of the UN. Among others,
Toward Zero endeavors to provide more training place at sea, ensure competition
and support continued growth of the Danish merchant fleet industry.
However, not all countries have access to the same resources as European
countries and some aspects of the Blue Economy is often forgotten. This present
especially poor countries with challenges in the implementation. Challenges
related to finance, social justice and science.
Challenges on a global level
Financial barriers
Obtaining a Blue Economy requires a stable economy and long-term financial
plans which has become a large obstacle for some countries due to COVID-19.
Financial barriers play a big role in the implementation of Blue Economy and it is
usually developing countries that pay the price. Some developing countries have
high levels of external debt and, therefore, focus won’t be on transitioning the
country’s agricultural system towards a bluer one. The transition becomes harder
for some countries due to the lack of capacity and technology. Furthermore, the
country needs a skilled workforce and therefore training within the field.
Social justice
The UN stresses that equity must not be forgotten when supporting a blue
economy. Land and resources often belong to communities, and the interests of
communities dependent on the ocean are often marginalized, since large sectors
such as coastal tourism are viewed as bringing in a larger profit. This means that
Blue Economy must help achieving SDG 14, but not undermine other goals of the
2030 Agenda at the same time.
Science and innovation
The Blue Economy is based on multiple fields within ocean science and therefore
needs intersectoral experts and stakeholders. NGO’s, fishers’ organizations,
indigenous people and communities are all crucial for an inclusive economy.
However, science and innovation are needed to understand the environmental and
socioeconomic aspects of a Blue Economy. Thus, the basis of creating a Blue
Economy can be demanding and needs numerous experts on the different fields
that some countries may not have access to. Developing must then not only rely on
their own national experts, but also on the expertise from other countries.
Supporting the Blue Economy transition
While many countries work towards a greener agenda by advancing their ocean
economies, achieving such endeavors are still challenging. Global governments
need to transition a small part of their economy towards achieving a global, healthy
blue economy. A part used for investing in modern infrastructure, technologies,
R&D, education and creating jobs. Transitioning away from an agricultural
industry towards a bluer economy will be demanding. This means that
governments must work together to make blue economies sustainable, share
research and know-how.
Multiple global organizations provide dialogue and guidance by creating
international events. In beginning of March 2022, The Economist hosted World
Ocean Summit on achieving the 2030 targets. In February 2020, The European
Commission also hosted One Ocean Summit in Brest, France, to take new steps to
strengthen EU leadership in protecting the ocean. At last, the UN Ocean
Conference will take place in June and July in Lisbon and will focus on saving our
oceans and protecting our future.
