The majority of people instantly picture solar farms glistening in the desert, electric vehicles cruising down highways in silence, or verdant forests swaying with hope when they think of sustainability.
Almost always, the topic of discussion is "green." However, another colour—a richer, more enigmatic shade—is just as important to the future of our world. Blue is that colour.
The ocean, which makes up more than 70% of the planet's surface, is more than just a huge body of water; it is the lifeblood of the planet. It produces over half of the oxygen we breathe, absorbs almost 30% of carbon dioxide emissions worldwide, and absorbs 90% of the excess heat that greenhouse gases trap.
The ocean's constant movement maintains an amazing web of life, nourishes billions of people, and moderates our climate. Fishermen, coastal communities, and those whose economies fluctuate with the tides are among the more than 3 billion people whose livelihoods are directly reliant on marine resources.
The ocean presents a vast empire in terms of economy by itself. To put it in the words of the OECD, the ocean economy is a whopping $2.5 trillion a year including shipping, fisheries, offshore energy, and marine tourism.
If it were a separate country, it would be among the richest economies in the world. The “blue economy” could reach $3 trillion by 2030 due to the innovations and developments in aquaculture, renewable energy, and ocean biotechnology. Meanwhile, the positive side of the story is not the only side; there is a negative aspect too.
Overfishing has led to the situation where almost 90 percent of the world's fish stocks are either overfished or completely extinct. 11 million metric tons of plastic are released into the oceans every year making things worse for the marine ecosystem by choking corals, trapping turtles, and adding to our food chain as microplastics.
The oceans are warming and becoming more acidic; the corals that were once so colourful and full of life are going to be left in the dark. The scientific community predicts that 90 percent of coral reefs might be lost by the middle of the century if the current warming trend is not reversed.
Most people associate sustainability with electric cars, solar farms, or forests. Almost invariably, the topic is "green." However, blue is another hue that is equally important to the future of our planet. The ocean, which makes up more than 70% of the planet's surface, is essential to both life and the world economy.
It sustains the livelihoods of more than 3 billion people, generates more than half of the oxygen we breathe, and absorbs 30% of carbon dioxide emissions.
According to the OECD, the ocean economy, which encompasses offshore energy, shipping, tourism, and fisheries, is worth about $2.5 trillion a year and has the potential to grow to $3 trillion by 2030. However, because of overfishing, plastic pollution, and climate change, the condition of this enormous ecosystem is rapidly declining.
By encouraging commercial ventures that rebuild marine ecosystems and produce steady revenue, the regenerative blue economy provides an answer. Blue finance, or funding this shift, is essential.
According to the United Nations Development Programme (UNDP), it will take more than $175 billion in annual investment until 2030 to achieve the Sustainable Development Goal 14 related to the ocean. However, ocean-related projects currently receive less than 1% of global climate finance.
The Seychelles Blue Bond, which debuted in 2018, is one ground-breaking example. In order to promote sustainable fisheries and extend marine protected areas to 30% of Seychelles' waters, the world's first sovereign blue bond raised $15 million.
In a similar vein, Belize restructured its debt in 2021 for $553 million in exchange for a pledge to protect 30% of its marine territory. The Nature Conservancy mediated this agreement, which released funds for climate resilience and conservation.
Palau is a notable global leader in marine conservation in the Pacific. Over 500,000 square kilometers, or 80% of the island nation's exclusive economic zone, has been declared a marine sanctuary, outlawing the majority of commercial fishing and extractive industries.
Palau used a combination of blended finance and ecotourism revenue to fund this ambitious project in collaboration with groups such as The Nature Conservancy and the Global Environment Facility (GEF). The innovative "Pristine Paradise Environmental Fee," which is paid by each visitor, is one of the tourist fees that the Palau National Marine Sanctuary Fund uses to fund community development and ocean conservation. This model shows how small island states can create a regenerative blue economy by combining finance, tourism, and policy.
Mangroves and seagrasses, which have the capacity to store up to five times as much carbon per hectare as tropical forests, are being used in other parts of Indonesia to create blue carbon credits.
The Portuguese government invested €133 million in marine biotechnology and sustainable aquaculture as part of the Blue Bioeconomy Pact. Development banks are also taking action; the European Investment Bank's €5 billion Clean and Sustainable Ocean Programme and the World Bank's PROBLUE fund are funding ocean conservation globally.
Private funding is also joining. Funds that address ocean plastics, sustainable seafood, and coastal protection include Credit Suisse's Blue Economy Initiative and AXA IM's Ocean Resilience Strategy.
In the meantime, locally driven initiatives like Mikoko Pamoja in Kenya raise money for clean water and education by selling verified carbon credits from the restoration of mangroves.
Redefining prosperity is the goal of funding the regenerative blue economy, not merely protecting the ocean. Countries can create resilient economies and protect the ocean, the planet's most precious resource, by coordinating capital with ecological restoration.
Nations such as Indonesia, Palau, Belize, and Seychelles demonstrate how coordinating funding with ocean restoration builds economic and ecological resilience. The future of sustainable finance will be brilliantly blue as more countries join this movement, in addition to being green.
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