Investing in the Future: 4 Actions to Build a Sustainable Ocean Economy

Against the backdrop of high inflation and interest rates, emerging economies face challenges in securing sustainable funding while the global financial system is seeking solutions to address pressing issues such as climate change, biodiversity loss, hunger and energy.

As the international community searches for common ground on addressing global challenges, there is growing consensus that a healthy and resilient ocean holds solutions to these interconnected challenges.?

The High Seas Treaty, the Global Plastics Treaty and the Kunming-Montreal Global Biodiversity Framework are important examples of the growing commitment to investing in the ocean. However, funding these ocean-based solutions requires more than public capital. Private financing is critical in building a sustainable ocean economy that benefits the environment and our economies.?

On 13 April 2023, the?UN Global Compact Ocean Stewardship Coalition hosted a High-Level Meeting on Sustainable Ocean Investments during the World Bank Spring Meetings in Washington, D.C. Industry leaders, policymakers and finance stakeholders worked together to identify key actions for shifting investment toward a thriving, sustainable ocean economy.?

Here are their four main recommendations:

#1: Educating Investors?

Scaling the sustainable ocean economy presents an opportunity to invest in rapidly growing technologies such as renewable energy, decarbonized shipping and ports, aquaculture and more. However, a lack of awareness about the impact of investing in the ocean have hindered progress. To increase sustainable ocean investments, capacity building is needed amongst private sector leaders, policymakers and regulators.

#2: Governments Must Commit to Sustainable Ocean Investments

Governments have a critical role in accelerating financing for a sustainable ocean economy. By signalling a commitment at the highest political level, they can create an enabling environment that shifts industry and capital towards sustainable ocean investments. This can be achieved through a range of levers including changes to tax, trade and monetary policies, incentives and standards.

#3: Increasing the Role of International Finance Institutions?

Multilateral Development Banks are essential in extending government and private sector balance sheets and providing capacity and technical assistance for emerging markets, early technologies and scaling proven solutions in the blue economy. These institutions can help de-risk financing for new technologies, scale existing technologies and leverage investment instruments.

#4: Establishing Guidelines and Standards for Blue Finance Initiatives

There are myriads of blue finance initiatives, but the landscape is complex and lacks clear reference points with mixed incentives, resulting in confusion for market participants. This uncertainty adds extra costs and risks, ultimately limiting bankable investments. Greater clarity can be achieved with global guidelines and standards, with measurable targets and metrics that provide investors with the data they need.

This meeting was a crucial step towards developing an?Ocean Investment Protocol, a roadmap for governments, finance, and industry to enable a pipeline of sustainable ocean investments for a thriving blue economy. This Protocol will also build on the?Blue Bond Guidance, which is set to launch in?June 2023?to provide the global market consistency and transparency in financing the blue economy. Click?here?for more information on the UN Global Compact Ocean Stewardship Coalition. For more information on the Coalition’s blue finance initiatives, please contact?[email protected].