Blue Economy: a year of opportunities for international political action

The role of the ocean along with its biodiversity has increasingly been recognized in recent climate debates and culminated in the recognition of ocean action in climate action during COP 26 last November. More specifically, the Glasgow Climate Pact invited stakeholders to integrate and strengthen ocean-based actions into their existing mandates and work plans. While ocean-based climate mitigation and adaptation strategies have been realized and translated into NDCs and policies of a number of SIDS, this global push can offer large ocean states additional opportunities to strengthen their ambitions to marine and coastal Nature based Solutions in their national climate strategies.      

Looking forward to 2022, clear commitments to curb ongoing ocean degradation are also needed. During the World Ocean Summit Asia-Pacific, held in December 2021, Ambassador Peter Thomson, the United Nations Secretary-General's Special Envoy for the Ocean, identified specific objectives for the upcoming ocean-related events to be held in 2022. He namely encouraged relevant stakeholders to agree to remove harmful fisheries subsidies during the 12th WTO Ministerial Conference, commence negotiations for an international binding treaty to end plastic pollution during the 5th session of the United Nations Environment Assembly, adopt the 30 by 30 protection target during the UN Biodiversity Conference, and put in place science-based solutions to stop the decline of ocean health the UN Ocean Conference in Lisbon.

For SIDS, restoring ocean health through such commitments would translate into greater opportunities for investment in the Blue Economy. In fact, a report published by the High Level Panel for a Sustainable Ocean Economy, revealed that every US$ 1 invested in mangrove conservation and restoration, decarbonizing shipping, or increasing production of sustainably sourced ocean-based protein is expected to yield US$ 3, US$ 2-5, and US$ 10 in benefits, respectively. However, for many Blue Economy sectors, private sector investment is impeded by the relatively high incurred risk. In addition, different Blue Economy sectors require different types of capital. For example, ecosystem restoration often requires impact-only investments such as grants (whereas aquaculture projects are mostly financed by debt and equity from the private sector), whereas a successful approach and a sustainable blue economy needs a diversified funding and financing strategy.

Much of this could be achieved through blended finance, where limited public or philanthropic capital is used to leverage private sector investments. Such financial tools should, however, be developed through close collaboration between financial experts and environmental practitioners so that ocean preservation and restoration are the primary outcomes of these investments. However, investing in healthy ecosystems is not the only requisite to support sustainable Blue Economies. SIDS are highly vulnerable to climate change impacts and external shocks. For instance, tourism, one of the key economic sectors in most SIDS, has been hard hit by the COVID-19 pandemic. There was an estimated 70% drop in travel receipts in 2020. While a slight recovery has been recorded in 2021, arrivals were still well below 2019 levels. Reimagining tourism through digital tourism, like the use of augmented reality technology to enhance visitor experiences, has the potential to increase the resilience of the industry by attracting new audiences and by providing a more sustainable product. Fisheries, another key economic sector for SIDS is at risk from Illegal, Unreported, and Unregulated (IUU) fishing. The use of digital tools, like electronic monitoring systems, Vessel Monitoring Systems, and Blockchain, can improve the Monitoring, Control, and Surveillance these fisheries for the benefit of SIDS. An integrated approach to the Blue Economy coupled to investments in creative industries and digital innovations can accelerate SIDS recovery through increased resilience, economic diversification, and new jobs creation for women, youth and persons with disabilities.

Read more in the SIDS Bulletin Special Edition - SIDS in 2022 and Beyond