Can Stimulating the Blue Economy Save Our Sinking Global Economy?

COVID-19 and the Blue Economy

The Blue Economy has been one of the hardest hit industries by COVID-19, as many of its main sectors, including fishing, shipping, coastal tourism and development, and oil and gas extraction, have come to a complete standstill. The World Bank defines the Blue Economy as the “sustainable use of ocean resources for economic growth, improved livelihoods and jobs, and ocean ecosystem health” (The World Bank, 2017). Though COVID-19 has slowed the growth of the Blue Economy, this comes as a blessing in disguise, given that this growth is typically unsustainable in nature. The Blue Economy will now have the chance to replenish its natural resources which have been severely depleted before the pandemic, leading to the question: is this the key to reigniting the global economy?

The Multi-Trillion Dollar Opportunity

Some may argue that the Blue Economy does not have the scale to reignite the global economy, however the worldwide blue economy is valued at around $1.5 trillion per year (Blue economy | The Commonwealth, 2020), while the EU Science Hub (2019) reported that in 2017, the EU Blue Economy recorded a gross profit of €74.3 billion. According to the World Bank, at least 3-5% of global GDP is derived from the oceans, while it also absorbs about 30% of global CO2 emissions (World Bank, 2018). Furthermore, the blue economy impacts a myriad of lives, as depicted by Figure 2 – from beachgoers in the Caribbean to farmers in mainland England. For this reason, it represents the perfect opportunity to jumpstart truly global, sustainable growth.

Past Failures Sketch A Blueprint for Success

The idea of the Blue Economy has been around for close to two decades, however, the ‘business-as-usual’ model was being unsustainably used (Blue economy | The Commonwealth, 2020); nations and companies whose relationship with the blue economy should have been mutually beneficial, instead began exploiting the natural resources within oceans. The greatest and most calamitous example of this is the BP Oil Spill in 2010. The expansively polluting 130 million gallons of oil dumped in the Gulf of Mexico has caused lasting effects to the wildlife, with many animals still suffering the repercussions to date (Meiners, 2020).

Furthermore, industrial fishing operations have spiralled into unsustainable over-fishing. From the permanent alteration of ecosystems to the actively growing the list of endangered species, alarmingly, its adverse effects are varied and seemingly inexorable.

On the other hand, however, some countries, such as the Seychelles, have successfully implemented an operating Blue Economy policy, through strong maritime security, trading agreements, and stringent ocean conservation (Seychelles - Championing the Blue Economy, 2019). These success stories can provide a blueprint for international change.

Sustainable, Blue Growth

Investment into marine restoration and protection by governments, companies, and NGO’s can successfully create jobs, protect the ocean’s ecosystem, and increase blue tourism demand, if done in the post-COVID period. Such policies have been tried and tested during the Great Depression, where ‘nature-based job creation programmes, such as the Civilian Conservation Corps in the US’ were successfully implemented, providing a basis for action in the future (McCauley, Teleki and Thienemann, 2020). Furthermore, investment into coherent legislation and the digitalisation of our oceans can lead to smarter shipping, sustainable fishing, and protection of vulnerable ecosystems and animals (McCauley et al., 2020). These three benefits have a global impact, as scientists estimate ‘845 million people are nutritionally vulnerable to any decline in seafood’ (McCauley et al., 2020). Furthermore, current data shows small-scale fisheries and aquaculture are much more sustainable (Seas at Risk, 2020), therefore meaning that if the right legislation and practices are put into place, the Blue Economy can create jobs, protect the ecosystems, and feed many.

Finally, sustainable financial support of the Blue Economy is essential. This includes green loans, sustainability-linked loans, and blue bonds, which can tie all firms to sustainable, blue growth. Action has already begun on this front, with the WWF producing the Sustainable Blue Economy Finance Principles in 2018, in association with the European Commission, the International Sustainability Unit, and the European Investment Bank. The document lists 14 principles that all majority or minority investors should apply to their portfolios, including ‘precautionary’, science-led’, and ‘transparent’ principles amongst others (Declaration of the Sustainable Blue Economy Finance Principles, 2018).

Cogent Potential and Cautious Progress

It is clear that the Blue Economy holds the key to the salvation of the world economy through stringent legislation, collaboration, and cautious, yet innovative solutions. COVID-19 has brought the suspension of some previous sustainable legislation, however that should not fall by the wayside once we start to move on from the pandemic. Furthermore, change will not come without opposition or challenges, however one thing is clear: the future of this planet is dependent on sustainable growth, and the crucial solutions to this vital quest lie in the unexplored depths of the Blue Economy.

By Mihir Shah

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