Developing countries have the potential to build stronger and more creative economies by taking advantage of the vast opportunities provided by the ocean. However, climate change, pollution, and overfishing pose a significant threat to these opportunities and the livelihoods of around 3 billion individuals who depend on the ocean for sustenance and income.
On May 8th, UNCTAD released the 2023 Trade and Environment Review, which explores the world’s ocean economy. Valued at $3-6 trillion, this sector has been greatly impacted by human activity and global crises. The report was presented during the 3rd UN Trade Forum and advocates for a “Blue Deal” to sustainably utilize our ocean, which is home to 80% of all life. This proposal builds on previous recommendations from the 4th UN Oceans Forum and the 2nd UN Ocean Conference in 2022. According to UNCTAD Deputy Secretary-General Pedro Manuel Moreno, we must find a way to benefit from the ocean while also protecting its resources.
Invest in emerging sustainable opportunities
Investing in emerging sustainable sectors, such as seaweed farming and plastics substitutes, could greatly benefit developing countries. The global seaweed market has grown from $4.5 billion in 2000 to $16.5 billion in 2020, and it can be farmed in many developing countries for food, cosmetics, and biofuels while also providing an eco-friendly alternative to plastic.
There are many other sustainable materials, such as bamboo, coconut husks, banana plants, and agricultural waste, that could be used to make eco-friendly versions of daily plastic products. Developing countries have abundant access to these materials and their communities have traditional knowledge in using them.
The world traded $388 billion in plastics substitutes in 2020, which is only one third the amount traded in plastics made from fossil fuels, indicating immense potential for growth. Governments and businesses are urged to invest in research and development of emerging sustainable sectors in the ocean economy, and companies are encouraged to invest in developing countries to enhance their technological and productive capacities.
Promote export diversification
Developing countries can benefit from investing in emerging ocean sectors to broaden their ocean exports. In 2020, the global export value of ocean-based goods and services, such as seafood, port equipment, shipping, and coastal tourism, was estimated at $1.3 trillion. During the COVID-19 pandemic, some ocean-based sectors showed resilience, while others were vulnerable. For instance, ocean-based goods experienced a 3.2% decline in exports, while services plummeted by 59%. The decrease in revenue from services was particularly damaging to coastal communities in developing countries that heavily depend on tourism. Therefore, diversifying their ocean activities and exports is crucial to boost economic resilience against future crises. The report suggests that governments should prioritize promoting a diverse and sustainable ocean economy as part of their crisis recovery strategies and climate mitigation and adaptation efforts.
Protect fish stocks and marine biodiversity
Around the world, government subsidies for fishing activities total an estimated $35 billion. A significant portion of this – approximately $20 billion per year – may contribute to overfishing by increasing the fishing industry’s capacity through fuel subsidies or financial incentives to purchase larger boats.
As per a report, 34% of global fish stocks are below sustainable biological levels. Therefore, countries are urged to promptly ratify the World Trade Organization’s (WTO) Agreement on Fisheries Subsidies, adopted on 17 June 2022. This agreement, which is a significant step towards addressing harmful subsidies, prohibits support for illegal, unreported, and unregulated fishing, bans support for fishing overfished stocks, and ends subsidies for fishing on the unregulated high seas. It will come into effect when two-thirds of the WTO’s 164 members deposit their “instruments of acceptance.”
The report also calls for countries to adopt and ratify the Marine Biodiversity Beyond National Jurisdiction agreement of 4 March 2023, also known as the “High Seas Biodiversity Treaty.” This agreement will establish tools for the fair and equitable sharing of benefits from marine genetic resources and create internationally protected areas in our oceans.
A new direction
The Sustainable Development Goal aimed at protecting life below water, known as SDG 14, is currently receiving the least amount of funding in comparison to other goals.
From 2013 to 2018, the ocean economy only received 1.6% of the total Official Development Assistance, which equates to roughly $2.9 billion per year. Unfortunately, this amount falls short of what is necessary to address the ocean crisis. Experts estimate that a minimum of $175 billion per year is required to achieve SDG 14 by 2030, particularly given the recent setbacks caused by COVID-19.
Furthermore, it has been projected that investing $2.8 trillion today in four sustainable ocean solutions (conservation and restoration of mangroves, decarbonization of international shipping, sustainable ocean-based food production, and offshore wind production) would generate net benefits of $15.5 trillion by 2050.
If a global “Blue Deal” isn’t established, it will be much more challenging to achieve the targets of SDG 14 and reap the associated benefits.
In light of this, Mr. Moreno emphasized the importance of investing more in building a sustainable ocean economy, stating that now is the ideal time to set a new course.
