Charting a Sustainable Blue Future: Navigating the World of the Blue Economy

In the realm of maritime affairs, a significant milestone beckons our attention. This year marks the golden jubilee of the International Convention for the Prevention of Pollution from Ships, affectionately known as MARPOL. This treaty stands as an indomitable bulwark against marine pollution, a testament to our unwavering commitment to safeguarding the world's oceans. To honor this achievement, the International Maritime Organization (IMO), the United Nations specialized agency entrusted with the safety, security, and environmental protection of global shipping, has chosen the resonant theme "MARPOL at 50 – Our commitment goes on" for World Maritime Day 2023.

In echoing this commitment, the IMO Secretary-General, Kitack Lim, emphasizes the pivotal role that MARPOL has played in the maritime sector. He advocates for shipping to embrace decarbonization, digitalization, and innovative technologies, while never losing sight of the human element that underpins these transformations. This, he believes, will ensure a sustainable planet for future generations.

In this spirit of innovation and commitment, the IMO-UNEP-Norway Innovation Forum 2023 convenes in the heart of London and across the digital realm, providing a platform to explore innovative pathways toward a sustainable, emission-free future for the maritime sector. As we commemorate this milestone and set our sights on the next 50 years, let us reflect not only on how MARPOL has made a difference but also on how it continues to shape our unwavering commitment to the United Nations' Sustainable Development Goals, particularly in the context of the blue economy's vital role in our collective future.

?Blue Economy

The Blue Economy, as defined by the World Bank, seeks to sustainably harness ocean resources for economic growth, livelihood improvement, and job creation while preserving ocean ecosystem health. A sustainable blue economy fosters innovation, circular economy practices, and ocean respect, aligning with the 2030 Agenda for Sustainable Development's acknowledgment of the ocean's pivotal role in preserving life on our planet.

The global blue economy, if viewed as a national economy, would rank as the world's seventh-largest. It thrives within our planet's vastest ecosystem, with oceans containing 97% of Earth's water and supporting 80% of all life forms. The ocean's significance is profound, providing oxygen for every second breath we take, sustenance for nearly half of humanity, critical resources for human health, and a complex web of economic interactions.

According to the OECD, the global economy grows at a rate of 3%, while the ocean-based economy surpasses this with a growth rate of 3.64%. Ocean resources contribute 5% of the world's GDP, offering employment to three billion people and sustaining the livelihoods of 350 million. By 2030, the global Blue economy is projected to reach a staggering worth of 3 trillion dollars, driven by advancements in marine science and technology. Notably, marine aquaculture experiences a remarkable growth rate of 5.69%, while shipbuilding and repair and marine equipment achieve rates of 2.93%. The offshore wind sector leads with an astounding annual growth rate of 24.5%.

Role of European Union

The European Union (EU) has been at the forefront of harnessing the potential of the Blue Economy, demonstrating a concerted effort to integrate maritime policies effectively. Over the past 15 years, the EU has forged a robust foundation for a harmonized maritime strategy in Europe. This endeavor involves active collaboration with Member States, regions, local stakeholders, and blue economy stakeholders, aligning with the principles of the European Green Deal.

A cornerstone of the EU's commitment is the ambitious goal to reduce greenhouse gas emissions by a minimum of 55% from 1990 levels by 2030, with a subsequent aim of achieving climate neutrality by 2050. Offshore renewable energy, notably offshore wind, emerges as a key driver in realizing these objectives. By 2050, it is projected that offshore renewable sources could supply a quarter of the EU's electricity demand. This transition towards sustainability encompasses a diversified ocean energy portfolio, encompassing technologies such as floating wind, thermal, wave, and tidal energy. These emerging technologies are poised to reach commercial viability within the next decade. To expedite their development, the EU has unveiled a comprehensive offshore renewable energy strategy, with the ambitious aim of increasing offshore renewable energy capacity five-fold by 2030 and a remarkable 30-fold by 2050.

In alignment with the European Green Deal's objectives, the EU has also set its sights on reducing greenhouse gas emissions from all modes of transport by 90%. This sweeping commitment encompasses maritime transport and underscores the EU's dedication to fostering Green Maritime Transport. As Europe's industrial landscape undergoes transformation driven by the expansion of offshore renewable energy, the role of ports is undergoing a fundamental shift. The EU envisions ports evolving into multifaceted energy hubs that integrate electricity, hydrogen, and other renewable and low-carbon fuel systems. Ports will also play a pivotal role in the circular economy, facilitating the collection, transshipment, and disposal of waste from ships and other port industries, as well as supporting ship decommissioning. Additionally, ports will serve as critical communication nodes for submarine cables and act as industrial clusters within the evolving European landscape.

Belt and Road Initiative

?In June 2020, China unveiled its "Vision for Maritime Cooperation under the Belt and Road Initiative." This vision aims to synchronize development plans and promote joint actions among countries along the 21st Century Maritime Silk Road. It focuses on building platforms for maritime cooperation and fostering the Blue Partnership characterized by green development, ocean-based prosperity, maritime security, innovation, and collaborative governance.

China is ready to provide technical assistance to countries along the route for sustainable marine resource utilization plans. It supports the establishment of industrial parks, economic zones, and the enhancement of shipping services to create international and regional shipping centers. Promoting cooperation through sister ports and port alliances is encouraged.

Additionally, China intends to facilitate marine knowledge and cultural exchange programs, including the Ocean Culture Year and the Ocean Arts Festival, to celebrate the spirit of friendly cooperation along the Maritime Silk Road.

G20 Summit 2023: Global Forum Addresses Key Challenges

World leaders gathered for the G20 Summit in 2023, a significant global forum, to discuss pressing global issues and cooperation on various fronts. The summit saw the participation of major economies, including the United States, Germany, Britain, Russia (represented by Foreign Minister Sergei Lavrov), and India, which held the presidency.

Notably, the summit marked a milestone in international diplomacy as it reached a consensus on addressing the ongoing conflict in Ukraine. While individual reactions varied, with some nations lauding the declaration and others remaining reserved, the G20 continued to be recognized as a platform for fostering global cooperation.

G 20 - Ocean Economy Declaration: Commitment to Sustainable Oceans

Within the G20 Summit, leaders made a significant commitment to the conservation and sustainable use of the world's oceans and marine ecosystems. Key highlights of the Ocean Economy Declaration include:

• Welcoming the Chennai High-Level Principles for a Sustainable and Resilient Blue/Ocean-based Economy.
• Acknowledging the adoption of a new international legally binding instrument under the UN Convention on the Law of the Sea (UNCLOS) for the conservation and sustainable use of marine biological diversity beyond national jurisdiction.
• Supporting the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR) in establishing Marine Protected Areas (MPAs) in the Antarctic based on scientific evidence.
• Reiterating their commitment to combating illegal, unreported, and unregulated (IUU) fishing and destructive fishing practices in line with international law.

This declaration signifies the G20's collective commitment to preserving, protecting, and sustainably utilizing the world's oceans, reinforcing the importance of the Blue Economy on the global stage.

Developing Countries and the Indian Ocean: A Global Transformation

The Indian Ocean, the world's third-largest oceanic division, encompasses a vast expanse exceeding 70 million square kilometers, comprising extensive Exclusive Economic Zones (EEZ) claimed by various nations and vast "high seas." Within this expansive region lies a formidable challenge in terms of economic and sustainable development, primarily because a significant portion of the Indian Ocean's periphery is inhabited by developing nations.

These developing countries, home to one-third of the world's population, rely extensively on the ocean's resources to sustain their livelihoods. However, the sheer magnitude of this population exerts immense pressure on the Indian Ocean's resources, leading to concerns such as pollution, habitat degradation, and over-exploitation.

What makes this scenario even more significant is the projection that nearly half of the world's population will call the Indian Ocean Rim (IOR) countries home by the year 2050. This monumental shift elevates the region from being perceived merely as the 'Ocean of the South' to a central and pivotal role as the 'Ocean of the Centre.' Furthermore, this transformation positions the Indian Ocean as the 'Ocean of the Future,' signifying its core influence on global trade, industry, labor, environmental dynamics, and security in shaping the course of the 21st century on a global scale.

?Pakistan's Vast Blue Economy Potential Amid Continental Shelf Expansion

Pakistan, endowed with a coastal stretch of 1,050 kilometers, including the continental shelf and Exclusive Economic Zone (EEZ), stands at the precipice of a transformative era in its Blue Economy. Notably, Pakistan's continental shelf limits have recently been extended from 200 nautical miles to 350 nautical miles—an extraordinary development. As a result, Pakistan gains an additional area spanning approximately 50,000 square kilometers, marked by exclusive rights for the exploration and exploitation of resources beneath the seabed, all in alignment with the UN Convention on the Law of the Sea.

This landmark expansion not only bolsters Pakistan's maritime territory but also opens up unprecedented opportunities for the nation's socio-economic progress. The potential contributions to the Blue Economy are immense, with current estimates suggesting Pakistan could contribute approximately $71-81 billion, equivalent to about one-third of its total GDP. Astonishingly, Chinese surveys suggest an even grander prospect, estimating the ocean economy potential of Pakistan to range between $5-10 trillion, a staggering figure that remains largely untapped. As of now, the realized potential merely touches $400 million, underscoring the immense room for growth.

Thriving Fisheries Sector: Pakistan's coastal areas are home to thriving fisheries, yielding nearly 600,000 metric tons of fish annually. This sector contributes a notable 1% to the country's GDP. The introduction of the "Blue Revolution" by the World Bank paves the way for enhanced fisheries production, presenting further growth opportunities.

Port Potential: Port Qasim and Karachi Port, two vital maritime gateways, hold immense potential. Together, they can contribute around $15 billion to Pakistan's economic prosperity. This figure is poised to rise to an impressive $35 billion with the full realization of the China-Pakistan Economic Corridor (CPEC).

Critical Trade Routes: Sea routes account for over 86% of Pakistan's exports, making a substantial contribution of $6.5 billion to the nation's economic growth. Gwadar Port, a flagship project under CPEC, is set to play a pivotal role in sea exports, significantly boosting Pakistan's GDP.

Renewable Energy Resources: Pakistan's coastline boasts remarkable potential for ocean renewable energy sources, including wind and tidal energy. The National Institute of Oceanography (NIO) has identified the capacity to generate tidal energy. Furthermore, wind and solar resources alone represent a potential worth of $43 billion.

Offshore Resources: Pakistan's offshore resources are abundant and lucrative. Offshore oil and gas reserves present a colossal opportunity, estimated at one trillion dollars. Vast untapped offshore mineral reserves hold a potential value of $10 trillion.

Ship Demolition: Gadani, once a global leader in ship demolition, has the potential to generate $3 billion by resuming operations at full capacity. This sector possesses the capacity to create one million jobs in Pakistan while satisfying the nation's steel demand.

Coastal and Marine Tourism: Coastal and marine tourism is a thriving sector globally, supporting over 6.5 million jobs. In Pakistan, Balochistan holds untapped potential with its pristine coastline and treasures such as Hingol National Park, Mud Volcano, and virgin beaches in Gwadar, Ormara, and Astola Island. Developing a comprehensive tourism policy, a Marine Tourism Master Plan, and fostering public-private partnerships are crucial steps.

Challenges and Opportunities: While Pakistan's Blue Economy potential is vast, challenges related to governance, infrastructure, and asset management need to be addressed. Integrating Sustainable Development Goals (SDGs) into the New Maritime Policy and establishing a Blue Forum for coordinated dialogue among government, offshore operators, stakeholders, and experts are essential steps.

Emerging Initiatives: Numerous public and private initiatives are taking shape, aimed at bolstering Pakistan's Blue Economy. The Pakistan Maritime Science and Technology Park, an initiative of Bahria University Karachi, is poised to play a pivotal role. It aims to bridge academia, government, and industry by providing cutting-edge technology, research, and innovative solutions in marine sciences, ocean energy technology, and maritime integrated logistics. These endeavors signify the country's commitment to drive its Blue Economy into a new era of growth and sustainability.

6th September 2023: Pioneering the Future of Blue Finance

In a monumental stride toward the future, the International Finance Corporation (IFC), a member of the World Bank Group, alongside the International Capital Market Association (ICMA), United Nations Global Compact (UN Global Compact), United Nations Environment Program Finance Initiative (UNEP FI), and the Asian Development Bank (ADB), has unveiled a global practitioner's guide for bonds to finance the sustainable blue economy.

This voluntary guidance isn't just a blueprint; it's a call to action. It provides market participants with clear criteria, practices, and real-world examples for "blue bond" lending and issuances. Born from collaboration across financial markets, ocean industries, and global institutions, it equips stakeholders with the tools to launch credible "blue bonds," evaluate their environmental impact, and facilitate transactions that maintain market integrity.

Charting a Sustainable Course

This global guidance accomplishes several critical objectives:

1. Defining Blue Economy Typology: It sets forth the eligibility criteria, offering clarity to potential investors and issuers.
2. Key Performance Indicators: It suggests measurable metrics, ensuring transparency and accountability in blue bond initiatives.
3. Showcasing Case Studies: By presenting case studies from the field, it demonstrates the real-world impact of sustainable blue finance.
4. Highlighting Global Necessity: It emphasizes the vital role of increased financing in achieving Sustainable Development Goal 14 and other global sustainability targets.

From Crisis to Opportunity

The development of a sustainable blue economy isn't a mere aspiration; it's an urgent necessity. It encompasses preventing the decline of marine fisheries, expanding low-carbon aquaculture, scaling offshore renewable energy, and decarbonizing maritime transport. This transition is pivotal in addressing the triple planetary crisis—climate change, nature loss, and pollution. The ocean acts as a critical heat and carbon sink, absorbing approximately 31% of carbon dioxide emissions and regulating the global climate.

Moreover, the shift toward a sustainable blue economy is instrumental in achieving the goals of the Paris Agreement. It is estimated that 20% of the required reduction in greenhouse gas emissions must take place within blue economy sectors.

A Call to Unite for a Blue Tomorrow

The world is at a crossroads. The oceans, once seen as boundless, are now recognized as finite resources requiring our care and protection. The sustainable blue economy is not just an opportunity; it's our responsibility—a chance to shape a world where economic growth harmonizes with ecological preservation. The call to unite for a blue tomorrow is not just a call to safeguard our planet; it's a call to secure our shared future.

Now, more than ever, it's time for governments, financial institutions, corporations, and individuals to step forward. Let us harness the potential of the blue economy while nurturing the oceans that sustain us. Together, we can create a world where prosperity, sustainability, and a thriving blue future go hand in hand. The voyage has begun, and the course is set—let us embark together on this transformative journey for the well-being of our planet and generations to come.

I leave you with a captivating perspective shared by Commander Adil Rasheed (Pakistan Navy, Ex Advisor Planning and Development at China Overseas Ports Holding Company, Gwadar, Director Environment and Safety, Port Qasim Authority): 'The fact is that there is only 10% of the green economy, while the remaining 90% is the Blue economy all over the world.' It's a profound reminder that the vast expanse of our blue planet holds the key to a future where sustainability and prosperity coexist harmoniously.

[Written by Erum Khan: Chairperson 'Climate Hub Forum', New-Generation Leader (UN NGL Fellow), Senior Fellow UN SDGs, Director (BOD) Tourism, Culture, Antiquities & Archive Department, Govt. of Sindh, G100 Women Leader - Country Head Tourism & Hospitality, Blue Economy Advocate, Global Connector for Sustainability, Host of 'SustainBizz-Coffee with Erum’, Editor in Chief First Sustainable Magazine in the region, Consultant/Trainer Sustainable-Regenerative Tourism, Co-Chair of the Foreign Investment and International Cooperation Committee GCCI and Sustainability Strategist]