World Ocean Day 2024: The Ocean's Key Role in Our Global Economy – Why Aren't We Valuing It Enough?

This year's theme, 'Catalysing Action for Our Ocean & Climate,' reminds us that the time to act is now. We must become agents of change, working together to create a sustainable future. Our Ocean, planet, life, and future are all at risk due to our failure to protect and value Nature. It's a call to recognise the Ocean's vital role in our global economy and the need to restore it for future generations.

"All of the Earth's Ocean, from the equator to the poles, is a single engine powered by sunlight – a blue machine." – Helen Czerski , BlueMachine

Despite being called Earth, our planet is 70% covered by oceans, which are crucial for protecting, feeding, and sustaining life. Humanity relies on the Ocean for survival, yet only 10% has been explored. This disconnect highlights the urgent need to appreciate this vital resource.

Sadly, Earth's Ocean faces escalating threats, including pollution and climate change. Greenhouse gases cause ocean waters to acidify, threatening marine species by weakening their shells. Overfishing disrupts food production, ecosystems, and biodiversity. The alarming proliferation of ocean plastic could result in more plastic than fish by 2050, posing significant risks to marine and human life.

According to the UN, "90% of big fish populations are depleted, and 50% of coral reefs are destroyed. We are taking more from the Ocean than can be replenished." This dire situation prompted the United Nations General Assembly to designate June 7th as World Oceans Day, emphasising the urgent need to protect this resource.

Though you may feel oceans apart from a coral reef, a healthy Ocean is essential for human life on Earth. It regulates climate and water systems and provides 17% of the world's animal protein intake. While the Ocean's health affects us all, some communities rely entirely on it for their livelihoods.

If livelihoods aren't enough to convince you, consider that the Ocean is the backbone of the global economy. It facilitates over 90% of the world's trade and supports enormous commercial activity annually. Nature and its ecosystem services—air, water, food, and protection from natural disasters—are the infrastructure of our economy and essential for survival.

The Value of Whales

For example, Whales play a crucial role in carbon removal services provided by ocean ecosystems, with some species offering a carbon sequestration value equivalent to 1,500 trees. Due to their contributions to carbon capture, nutrient cycling, and supporting marine ecosystems, a single whale is estimated to be worth approximately $3 million. These giants are vital for ocean health and climate mitigation. Alongside seagrass meadows, whales help maintain marine balance and have enabled the Ocean to remove 500 gigatons of carbon since 1890. As Ralph Chami of the IMF emphasises, preserving whales is an environmental and economic necessity.

Our Ocean is our 'Blue Machine' and the backbone of global infrastructure. The economy heavily depends on it. Nature's services, including food production, water purification, and climate adaptation and mitigation, such as carbon sequestration, are valued at an estimated $140 trillion annually—nearly one and a half times greater than global GDP.

We have neglected our Nature-based infrastructure, leading to the depletion of 70% of wildlife globally. Business practices significantly contribute to this problem. Almost every business pollutes, consumes natural resources, or adversely impacts the Ocean's health. We must re-evaluate these practices and prioritise protecting and restoring our natural environment.

However, the core issue isn't business or capitalism; it's that we don't value Nature. Despite our dependence on it, we fail to appreciate its worth. If we valued Nature, we wouldn't be polluting our oceans or facing a future with more plastic than fish.

Our UK Coastline and Marine Ecosystems

The UK boasts a coastline stretching 7,700 miles, rich in diverse marine ecosystems, including sea kelp forests and oyster populations. These ecosystems are vital for marine biodiversity and coastal protection. Sea kelp, for example, plays a significant role in carbon sequestration and provides habitat for numerous marine species. Oyster populations contribute to water purification and provide a habitat for other marine life. However, pollution, overfishing, and climate change have declined kelp forests and oyster beds. We need to mitigate these impacts and restore these vital ecosystems at scale.

Our Big Idea: Valuing Nature as Infrastructure

Nature provides invaluable ecosystem services, yet we need to value it correctly. How do we transition to a Nature-based economy where Nature is valued and all pay for the ecosystem services we benefit from?

Despite being at a crisis point, we can still reverse the damage. We can work with the current capitalist system to do so. Investing in Nature isn't philanthropy; it's reprogramming capitalism to create economic growth without degrading Nature and, in fact, to restore it. By framing Nature as an asset, we will protect and restore it like we do for other assets.

Thinking About Nature as an Asset

An asset has cash flow, utility, and scarcity value. We need to start viewing Nature in this way. Using seagrass as an example, we can see how Nature can be an asset.

Cash Flow Potential

Seagrass meadows provide cash flow potential for local communities and businesses. They serve as breeding grounds for juvenile fish species like bass, plaice, and pollock, which have commercial value if fished sustainably. Seagrass meadows are also efficient carbon sinks, accounting for 10% of the Ocean's carbon storage capacity despite covering only 0.2% of the sea floor. They capture carbon 35 times faster than tropical rainforests, and carbon capture via credits provides cash flow.

Scarcity Value

Seagrass is in global decline due to human impacts, threatening the loss of these free services. Once plentiful in UK coastal waters, seagrass meadows have shrunk by over 90%, from around 80,000 to 8,000 hectares. As they disappear, their importance and scarcity surge in value.

Utility Value

Seagrass provides biodiversity, captures carbon, cleans water, mitigates floods, and protects shores from erosion. It also supports keystone species like seahorses. These utilities need to be paid for.

Getting Companies to Pay

At Rebalance Earth , we address five critical environmental challenges in the UK: flooding, drought, water quality, biodiversity, and carbon capture. We show local companies the impact of these issues and highlight investment opportunities in Nature landscape level 'Source to Sea' restoration projects.

Our strategy involves getting companies to finance ecosystem services through Nature-as-a-Service (NaaS) contracts. These contracts, a novel financial instrument, allow pension funds to generate returns by investing in Nature restoration projects. This makes Nature an investable asset class and helps companies address Nature-related risks, such as losing Ocean kelp and declining marine food systems. NaaS agreements create a cash flow for Nature, turning it into a valuable asset.

Seaweed and Kelp as Plastic Alternatives

For example, Notpla , a pioneering London startup, reduces plastic pollution by using seaweed and kelp. They produce biodegradable, compostable packaging, offering sustainable alternatives to single-use plastics. Their products, including liquid-holding bubbles and food container linings, degrade naturally within weeks. Notpla's solutions are gaining traction, and they are used in events like the London Marathon and by companies like Just Eat.

[Check out my interview with Pierre, co-founder of Notpla].

SamudraOceans' Role in Seaweed Harvesting and Blue Carbon

SamudraOceans , co-founded by my friend Joyeeta Das , revolutionises seaweed farming - their mission is clear to remove 1 Giga Tonne of carbon from the atmosphere by 2033. By planting and harvesting seaweed, they support companies' transition from plastic to biodegradable, compostable packaging and capture blue carbon. Using advanced robotics and AI, they optimise farming, creating traceable blue carbon credits sold to tech firms to achieve their net-zero plans.

Addressing the Nature Deficit

The UK's Nature deficit requires an estimated ￡50-￡100 billion over the next ten years. While this sum sounds significant, long-term asset owners like pension funds can bridge the finance gap by redirecting capital flow.

Rebalance Earth's purpose is to redirect private capital to restore Nature at scale. Additionally, individuals can take small steps to catalyse action for our Ocean and climate: eat sustainably caught fish, buy zero-waste products, and participate in coastal clean-ups.

As Mother Teresa famously said, "We ourselves feel that what we are doing is just a drop in the Ocean. But the Ocean would be less because of that missing drop."

Every drop counts towards creating a world worth living in!