Blue Biotrade: Harnessing Marine Trade to Support Ecological Sustainability and Economic Equity

Blue BioTrade: Harnessing Marine Trade Support Ecological Sustainability Economic Equity AT UNCTAD/DITC/TED/2018/11 © 2018, United Nations Conference Trade Development work open access complying Creative Commons licence created intergovernmental organizations, http://creativecommons.org/licenses//3.0/igo/. findings, interpretations conclusions expressed authors necessarily reflect views United Nations officials Member States. designation employed presentation material map work imply expression opinion whatsoever part United Nations legal status country, territory, city area authorities, delimitation frontiers boundaries. publication formally edited. iiiHARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY Contents Figures, Tables Boxes ...................................................................................................................... iv Acknowledgements ................................................................................................................................ iv Abbreviations ........................................................................................................................................... Executive summary.................................................................................................................................. vi 1. OCEANS, THE BLUE ECONOMY, AND THE NEED FOR SUSTAINABILITY ....................... 1 1.1 Introduction ...................................................................................................................................... 1 Sustainable trade marine coastal goods services................................................................ 1 introduction concept BioTrade, principles minimum requirements .......................... 3 Objectives structure report ................................................................................................. 5 2. OCEANS, THE BLUE ECONOMY, AND SECTOR CLASSIFICATIONS ............................... 6 Defining ocean/blue economy ........................................................................................................ 6 Classification sectors activities ocean economy......................................................... 7 Estimating ocean economy ......................................................................................... 9 3. THE OCEAN ECONOMY AND BLUE BIOTRADE ....................................................... 11 3.1 Blue BioTrade economic sector .................................................................................................. 11 Fisheries aquaculture .................................................................................................................. 11 Bioprospecting natural marine compounds ................................................................................... 11 Marine coastal tourism ................................................................................................................ 14 Blue carbon credits ............................................................................................................................ 16 3.2 Threats sustainable coastal marine ecosystems ................................................... 16 4. APPROACHES TO BLUE BIOTRADE ....................................................................... 17 4.1 Ecosystem-based management...................................................................................................... 17 4.2 chain approach ...................................................................................................................... 19 Fisheries chain .......................................................................................................................... 20 Combining -chain analysis ecosystem-based management approach .......................... 20 4.3 Adaptive management .................................................................................................................... 21 5. BLUE BIOTRADE AND THE CURRENT OCEAN GOVERNANCE FRAMEWORK .............. 22 5.1 UNCLOS relevant implementing agreements ............................................................................ 23 5.2 Governance high seas.......................................................................................................... 24 5.3 Multilateral environmental agreements ............................................................................................. 24 5.4 FAO regulations .............................................................................................................................. 26 5.5 Regional fishery governance ........................................................................................................... 27 6. BLUE BIOTRADE, STANDARDS, LABELLING, AND CERTIFICATION ............................ 28 6.1 Standards ....................................................................................................................................... 28 Mandatory standards ........................................................................................................................ 28 Voluntary standards ........................................................................................................................... 28 6.2 Labelling ......................................................................................................................................... 29 Ecolabel certification .......................................................................................................................... 32 Tourism standards labels ............................................................................................................ 33 7. CONCLUSIONS AND RECOMMENDATIONS ............................................................ 35 7.1 future ocean economy .................................................................................................... 35 7.2 role Blue BioTrade ................................................................................................................ 35 7.3 steps Blue BioTrade ........................................................................................................... 36 ANNEX. DRAFT BLUE BIOTRADE PRINCIPLES AND CRITERIA ...................................... 37 References ........................................................................................................................................... 41 Notes .................................................................................................................................................... 46 iv BLUE BIOTRADE: Figures Figure 1: Examples ecosystem services ....................................................................................................... 2 Figure 2: BioTrade conceptual framework: mandates, principles approaches ..................................... 3 Figure 3: Connectivity ecosystems, ecosystems human wellbeing ....................... 19 Figure 4: simplified representation fisheries chain ..................................................................... 20 Tables Table 1: Definitions ocean-based economic activities selected countries ........................................ 6 Table 2: Selected components ocean economy relevant Blue BioTrade ............................................. 8 Boxes Box 1: “BioTrade” “biotrade” ................................................................................................................. 3 Box 2: Financing Blue BioTrade .................................................................................................................... 10 Box 3: Case study: Innovations seaweed farming ...................................................................................... 12 Box 4: Case study: Algotherm cosmetics ...................................................................................................... 14 Box 5: Case study: Whale watching Baja California .................................................................................... 15 Box 6: Sustainable trade wetlands-derived products services, Ecuador .............................................. 18 Box 7: UNCLOS definitions marine jurisdictions ......................................................................................... 23 Box 8: Case study: Queen conch Caribbean ........................................................................................ 26 Box 9: Union Ethical BioTrade Ethical BioTrade Standard ...................................................... 30 Acknowledgements publication produced UNCTAD development bank Latin America (CAF) team international experts including Paolo Bifani, Senior Officer United Nations Environmental Programme; Tundi Agardy, Founder/Director MARES Program, Forest Trends; David Vivas Eugui, Legal Officer, Lorena Jaramillo, Economic Affairs Officer Trade, Environment, Climate Change Sustainable Development branch United Nations Conference Trade Development (UNCTAD); René ómez- Garcí, Senior Executive /Green Business Unit Head, Federico Vignati, Principal Executive CAF. team peer reviewers Daniel Kachelriess, Marine Species Officer Convention International Trade Endangered Species Wild Fauna Flora (CITES) Secretariat; Alain Deidun, Director International Ocean Institute’ Malta Centre Associate Professor University Malta; Ann Wilkings, UNCTAD BioTrade International Institute Sustainable Development (IISD) Consultant detailed comments feedback Sean Lothrop valuable contributions editor. Desktop formatting Rafe Dent UNCTAD. 25 September 2018 vHARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY ABSCH Access Benefit-Sharing Clearinghouse CBD Secretariat CAF development bank Latin America CAST Caribbean Alliance Sustainable Tourism CBD Convention Biological Diversity CBF Caribbean Biodiversity Fund CCI Caribbean Challenge Initiative CITES Convention International Trade Endangered Species Wild Fauna Flora CTO Caribbean Tourism Organization DDR Due diligence requirement EEZ Exclusive economic zone FAO Food Agricultural Organization United Nations GDP Gross domestic product ILO International Labour Organization IOC Intergovernmental Oceanographic Commission ILO International Labour Organisation IP intellectual property ISA International Seabed Authority ISEAL International Social Environmental Labelling Alliance IUU Illegal, Unreported, Unregulated Fisheries MIF Multilateral Investment Fund MEIF Marine Enterprise Investment Fund MMAs Marine managed areas MPAs Marine protected areas MSP Marine spatial planning MSY Maximum sustainable yield NAMA Nationally mitigation action NGO -governmental organization NPAA Natural Protected Areas Authority NTOs National tourism organizations OECD Organisation Economic -operation Development SDG Sustainable Development Goal SIDS Small island developing states SME Small medium sized enterprise TBT Technical barriers trade UEBT Union Ethical BioTrade UNCLOS United Nations Convention Law Sea UNCTAD United Nations Conference Trade Development UNDESA United Nations Department Economic Social Affairs UNDOALOS United Nations Division Ocean Affairs UNEP United Nations Environment Program UNESCO United Nations Environmental, Scientific, Cultural Organization UNWTO United Nations World Tourism Organisation WMO World Maritime Organization WTO World Trade Organization Abbreviations vi BLUE BIOTRADE: EXECUTIVE SUMMARY United Nations Conference Trade Development (UNCTAD) defines BioTrade “ activities collection/production, transformation commercialization goods services derived native biodiversity criteria environmental, social economic sustainability.” impacts sustainability natural-resource exploitation, BioTrade important implications objectives Convention Biological Diversity. BioTrade encompasses expanding range goods services, including personal care, natural pharmaceuticals, phytopharma, nature-based fashion, horticulture products, handicrafts, textiles, sustainable nature-based tourism, forestry-based carbon credit generation. 2015, total BioTrade sales estimated €4.3 billion, 5 million people benefitted global BioTrade. context, emerging concept “Blue BioTrade”—focused marine-based products services—presents exciting tool promote sustainability equity. Blue BioTrade reflects criteria define BioTrade: conservation biodiversity, sustainable biodiversity, equitable benefit sharing, socioeconomic sustainability, legal compliance, respect stakeholders’ rights, defined tenure access resources. Blue BioTrade approach involves working multiple levels chain develop sustainable livelihoods, adopt ecosystem-based management approach, foster swift adaptation dynamics markets changing ecological conditions. terrestrial products differ marine products important ways, principles define BioTrade adapted marine coastal context. unique socio-political characteristics marine ecosystems require conservation common-pool resources adoption innovative systems allocate property rights. status world’ oceans global commons governed international laws conventions (.., United Nations Convention Law Sea) creates unique challenges sustainable exploitation , trade , marine resources.1 greatest threat oceans economy general lack knowledge accountability goods services originating sea. Tracking impact economic activities based indicators marine coastal biodiversity challenging, data status exploitation marine biota deeply inadequate. numerous data sources terrestrial environment, marine coastal data primarily official statistics reported world’ fisheries. chains marine coastal products tend opaque, due part difficulty cost monitoring chains, frequently encompass multiple jurisdictions levels oversight capacity. result, goods sourced origin hard trace. concept Blue BioTrade comprises sustainable-sourcing model primarily applied business business basis, business--consumer applications proven successful. BioTrade , Blue BioTrade build international mandates agreements, Sustainable Development Goal 14, Millennium Ecosystem Assessment, UNCTAD’ Nairobi Maafikiano, United Nations agreements declarations. Informed 20 years experience developing sustainable chains sectors, BioTrade concept successfully applied biodiversity-based sectors, government policies private initiatives. emerging field Blue BioTrade catalyse sustainable equitable protection marine coastal biodiversity oceans . report describes application Blue BioTrade concept promote sustainable equitable economic sectors chains rely marine coastal resources. proposal implementing Blue BioTrade approach Annex . Blue BioTrade principles criteria applied force law voluntary verification certification systems enable firms obtain price premium embracing equity sustainability. international consensus viiHARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY principles criteria Blue BioTrade established, certification systems place (.. existing framework Union Ethical BioTrade), firms publicly demonstrate commitment sustainability equity. represents exchange ongoing dialogue Blue BioTrade UNCTAD, CAF: development bank Latin America, regional national partners world. Expanding Blue BioTrade require clear guidelines expressly tailored marine coastal environment, governance arrangements ecological characteristics oceans land-based economic sectors. industries regarded priorities Blue BioTrade: () fisheries aquaculture; (ii) marine-based pharmaceuticals cosmetics; (iii) marine coastal tourism, (iv) carbon capture sequestration. Leveraging Blue BioTrade principles enhance economic natural capital, supports food production, tourism, range economic activities, noneconomic benefits ecosystem services, including water-quality maintenance, carbon sequestration, shoreline stabilization disaster mitigation, scenic beauty, cultural worth traditional livelihoods. Blue BioTrade focuses interconnected values benefits ecologically healthy, -managed marine coastal habitats achieve sustainability enhance economic efficiency. Blue BioTrade principles aligned policies coastal nations framework United Nations Convention Law Sea implementing agreements, areas national jurisdiction. Blue BioTrade relevant objectives Convention Biological Diversity, ensure exploitation coastal marine resources exceed ecosystem’ maximum sustainable yield2 regenerative capacity. Blue BioTrade promote equitable sharing benefits derived marine biodiversity helping establish clear rights access, , ownership marine coastal resources leveraging traditional ecological management knowledge benefit-sharing systems. expanding array organizations, businesses, communities adopt Blue BioTrade principles ensuring ecological sustainability, economic efficiency, social equity, immense world’ oceans continue grow. viii BLUE BIOTRADE: © Fo lia . om , ck ni nj 1HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY 1. OCEANS, THE BLUE ECONOMY, AND THE NEED FOR SUSTAINABILITY 1.1 Introduction Sustainable trade marine coastal goods services Oceans dominate planet greater extent realize. vast majority world’ 195 sovereign nations coastlines, bulk world’ populations resides. global economy inextricably tied health productivity marine coastal ecosystems, ad seas coasts filled valuable assets support countless livelihoods, generate vital fiscal revenue, provide wellbeing local communities visitors, play key role climate-change mitigation. Oceans coastal areas major component global food supply— contribute , marine fisheries aquaculture, indirectly, supporting land-based agriculture— marine resources vital food security communities world. Marine coastal ecosystems provide essential water energy resources, vitamins, enzymes nutritional compounds, pharmaceutical herbal medicines, industrial inputs dyes oils. Collectively, resources support growing sector global trade important contributor economic output countries world. Marine coastal environments increasingly important global populations grow, land scarce, climate , markets marine products services emerge. world’ growing population increasingly sea food, pharmaceuticals, minerals, desalinated drinking water, energy, recreation, threats sustainability marine coastal resources intensifying. failure adopt holistic approach managing marine coastal systems resulted uncoordinated development fisheries, energy, mining, bio-prospecting, tourism, economic activities. world, marine- policies important trade- offs capitalize synergies comprehensive approach provide, undermining sustainability provoking conflict scarce resources.3 Marine fisheries wholly dependent marine coastal biodiversity productivity, national transnational fishing operations ignore basic principles conservation, degrading ecosystems devastating biodiversity overexploitation, destructive fishing practices, uncontrolled waste pollution. Fishery rights allocated equitably, workers treated poorly, benefits shared local communities. Bio-prospecting food additives, pharmaceuticals, personal care products4 similarly unsatisfactory record regard environmental sustainability, equitable benefit sharing, respect tenure rights. true marine coastal tourism. shift sustainable equitable exploitation extractive renewable marine coastal resources yield dramatic social, environmental, economic gains. Trade policies grounded sustainability equity build foundation responsible, integrated, long-term management marine coastal resources. principles ensure trade sustained undermining biodiversity— commonly “BioTrade” 5— adapted marine coastal setting emerging concept “Blue BioTrade.” principles criteria underpin Blue BioTrade support sustainable fisheries aquaculture, marine ecotourism, bio-prospecting. report describes enormous potential Blue BioTrade offers guidance realizing . ecosystem-services perspective, examines real potential marine coastal systems providing goods services benefit humans, frame challenges Blue BioTrade designed address. adopting perspective develop effective Blue BioTrade projects policies, public official, investors, members civil society, international development institutions stakeholders evaluate potential Blue BioTrade prioritize interventions . Ecosystem-based management, chains, sustainable livelihood economic activities sustainable resilient, supports goals Blue BioTrade. Ecosystem-based management holistic perspective marine coastal resources includes socioeconomic economic benefits. ecosystem-services 2 BLUE BIOTRADE: perspective determine level types ecosystem sustainable assessing impacts exploited resource , quality socially economically valuable ecological systems (Figure 1). Conservation components ecosystem- based management, explicitly wellbeing humans indirectly rely ecosystems, ecosystem-services perspective reduce risks environmental, social, economic sustainability. unique socioeconomic, political, ecological characteristics marine ecosystems require innovative conservation solutions. status world’ oceans global commons governed international laws conventions creates unique challenges sustainable exploitation , trade , marine resources. addition, marine coastal ecosystems tend ecologically open porous land ecosystems, harbour exceptional number migratory -ranging species. , marine coastal ecosystems tend vulnerable distant threats terrestrial ecosystems. global climate change intensifies, cumulative pressure underregulated exploitation marine resources inadequate watershed management increases, economic competition limited resources push oceans governance limits.6 capacity national governments manage resources territorial waters varies substantially, coastal areas weaker governance require special attention. Building local capacity increasingly urgent, coastal nations recognizing considerable potential expand exploitation marine resources increase trade ocean-based products services. , innovations allowing private firms expand economic activities sea coastal areas. Current projected future ocean environment, including wild-capture fisheries aquaculture, desalination, renewable - renewable energy extraction, mineral mining, bio- prospecting, coastal development support tourism impact biodiversity. Integrating BioTrade principles criteria ( Figure 1) oceans governance lessen negative impacts economic activity promote sustainable Figure 1: Examples ecosystem services Offshore reefs - lands create sand protect shoreline storms Landscape features offer recreational opportunities SCUBA driving, sea kayaking, sailing Estuarine seagrasses mangroves provide nursery habitat crustacean species Healthy rives provide drinking water habitats protects waterways Marine ecosystems incluiding seagrases, mangroves salt - marshes act carbon sanks reducing greenhouse gases provide food creating jobs Healthy coral reef incredibly biodiverse providing Mangrves saltmashes act , tapping sediments nutrients giant filter Sustainable fisheries Source: Agardy al., 2011. 3HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY scarce vital oceanic resources. Grounding Blue BioTrade principles criteria ecosystem-services approach analysis policymaking establish foundation responsible investment7 provide framework international collaboration.8 core concept BioTrade originally developed terrestrial resources, ecosystems, economic activities, creating Blue BioTrade approach achieve global sustainability marine coastal ecosystems. introduction concept BioTrade, principles minimum requirements United Nations Conference Trade Development (UNCTAD) defines BioTrade “ activities collection/production, transformation commercialization goods services derived native biodiversity criteria environmental, social economic sustainability.” BioTrade supports progress objectives Convention Biological Diversity (CBD), Convention International Trade Endangered Species Wild Fauna Flora (CITES), Sustainable Development Goals (SDGs), UNCTAD’ Nairobi Maafikiano. concept “BioTrade” distinct “biotrade,” broader category trade (Box 1). BioTrade encompasses expanding range goods services, including personal care, natural pharmaceuticals, phytopharma, nature-based fashion, horticulture products, handicrafts, textiles, sustainable nature-based tourism, forestry-based carbon credit generation. 2015, total BioTrade sales estimated €4.3 billion, 5 million people benefitted global BioTrade.9 , estimated 83% consumers surveyed expect Box 1: “BioTrade” “biotrade” “BioTrade” “biotrade” interchangeable, capitalization term BioTrade reflects fundamental difference definition. term “biotrade” describe trade biological resources, plant material input food, cosmetics, industrial products, imply trade ecologically sustainable equitable distribution benefits. contrast, BioTrade activities characterized respect environmental, economic, social wellbeing maintaining integrity ecosystems species resources collected, cultivated, observed. Income equitably distributed actors chain, resource- decisions inclusive participatory basis. BioTrade governed set -binding principles criteria, enables formally institutionalized. Source: UNCTAD (2017a), Handbook Access Benefit Sharing BioTrade. Figure 2: BioTrade conceptual framework: mandates, principles approaches Mandate BioTrade principles Sustainable livelihoods chain Ecosystem approach Approaches Adaptive management UNCTAD XII, XIII, XIV CBD CITES MEAs Sustainable development objectives (SDGs) P1. Conservation biodiversity P2. Sustainable biodiversity P3. Equitable bene�-sharing P4. Socioeconomic sustainability P5. Legal compliance P6. Respect actors’ rights P7. Clear land tenure resource access Source: UNCTAD (2017b). 4 BLUE BIOTRADE: companies sourcing policies place protect biodiversity,10 BioTrade satisfy growing consumer demand sustainability. Informed 20 years experience implementing biodiversity-based approaches vast range chains sectors, BioTrade concept successfully promoted sustainability equity government policies private- sector initiatives. BioTrade sustainable-sourcing model primarily applied business-- business basis, years business-- consumer applications proven successful. BioTrade , Blue BioTrade build international mandates agreements, Sustainable Development Goal 14, paragraph 100t Millennium Ecosystem Assessment, UNCTAD’ Nairobi Maafikiano,11 portions Call Action United Nations Conference Oceans.12 Based practices, lessons learned successes BioTrade, emerging concept Blue BioTrade13 considerable potential promote sustainability equity production marine- based goods services. , principles criteria Blue BioTrade, guidelines tools implementing , reflect unique characteristics marine coastal environments. land-based BioTrade initiatives, set minimum eligibility requirements determine considered Blue BioTrade. minimum requirements Blue BioTrade initiative satisfy include: • Focusing material derived coastal marine biodiversity (.. living coastal marine species); • Refraining unsustainable mineral extraction sands, metals, oil gas, unsustainable energy generation; • developing genetically modified organisms; • introducing encouraging introduction invasive species; • activity harvest/catch, , disrupt, threaten endangered species, including covered CITES Appendix national regional endangered-species lists; • causing encouraging degradation transformation marine coastal ecosystems, .., draining wetlands; • undertaking encouraging form illegal, unreported, unregulated (IUU) fishing illegal activities, United Nations Food Agriculture Organization (FAO) International Plan Action Prevent, Deter Eliminate IUU Fishing; and14 • Applying precautionary approach, Rio Principles United Nations Fish Stocks Agreement 1995.15 addition set minimum eligibility requirements, Blue BioTrade reflects principles criteria define BioTrade. : () conservation biodiversity, (ii) sustainable biodiversity, (iii) fair equitable benefit sharing, (iv) socioeconomic sustainability, () legal compliance, (vi) respect stakeholders’ rights, (vii) clear land tenure equitable access resources. Blue BioTrade adapt principles marine coastal contexts, proposed detailed Annex . Successful BioTrade approaches include working chain, contributing development sustainable livelihoods, adopting ecosystem- services perspectives adaptive management. addition development specific Blue BioTrade principles criteria, norms standards defining BioTrade adapted account unique economic, political, ecological characteristics marine resources. land tenure ownership rights terrestrial resources defined protected laws single government, rights ownership access marine resources tend complex vary types jurisdiction, include national territorial waters, exclusive economic zones (EEZs), areas national jurisdiction (ABNJs), “high seas”. Due part inherent challenges defining enforcing tenure rights, access marine resources poorly managed cases completely unregulated. cases, marine resources legally owned harvested. herd cows property rancher, fish owned fisher landed catch. protecting ownership rights terrestrial sense, local authorities regulate catch formal licensing requirements customary practices. Property rights ocean space (analogous land ownership) acquired individuals, seabed leasing confer temporary exclusive rights leaseholders extracted oil minerals. addition, marine coastal ecosystems tend 5HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY ecologically open porous land ecosystems, harbour exceptional number migratory -ranging species. , marine coastal ecosystems tend vulnerable distant threats terrestrial ecosystems. Due marine coastal connectivity, ecosystem interactions, migratory nature aquatic species, concept “native” species relevant Blue BioTrade. greatest threat maritime economy general lack knowledge accountability goods services originating sea. Tracking impact economic activities based indicators marine coastal biodiversity challenging, data status exploitation marine biota deeply inadequate. numerous data sources terrestrial environment, marine coastal data primarily official statistics reported world’ fisheries. chains marine coastal products tend opaque, due part difficulty cost monitoring chains, frequently encompass multiple jurisdictions levels oversight capacity. , origin good hard trace. inherent characteristics marine product chains difficult determine product labelled correctly terms species, origin, terms conditions produced harvested. marine chains, products sources lumped middlemen reach distributors retailers. process, catches protected species accidentally deliberately mislabelled -protected species. migratory nature oceanic species complicates protection efforts, harvesters illegally access protected areas, mislabel product legally derived. challenge maintaining effective surveillance sea transgressions difficult identify land. challenge observation difficult verify catch harvested sustainable methods accordance applicable laws regulations. Blue BioTrade principles criteria explicitly account unique characteristics marine trade. Objectives structure report report designed launch dialogue CAF, UNCTAD stakeholders emerging concept Blue BioTrade, principles criteria, application ecosystem management, -chain development, employment creation, socioeconomic equity. introduction, Section II report describes “ocean economy” “blue economy” reviews current state knowledge surrounding realized potential marine resources methodologies determining values. Section III introduces key economic sectors relevant Blue BioTrade, including fisheries aquaculture, bio-prospecting, marine coastal tourism. Section IV discusses Blue BioTrade’ relationship marine ecosystem services, chains, adaptive management, complementary influence sustainable livelihoods. Section examines current state global trade marine coastal biodiversity commodities, governance arrangements underpin trade, potential transform commercial biotrade Blue BioTrade improved standards, certification, labelling schemes. Section VI concludes list policy recommendations advancing Blue BioTrade, Annex presents proposed set Blue BioTrade principles criteria tailored marine coastal context. report intended starting point discussions global BioTrade stakeholders. 6 BLUE BIOTRADE: 2. OCEANS, THE BLUE ECONOMY, AND SECTOR CLASSIFICATIONS ocean economy supplies wide range foods, medicines, minerals, oil, energy, goods services. Oceans provide 20% world’ total animal protein intake,16 billion people worldwide depend fish primary source protein. areas, including parts Southeast Asia, seafood constitutes 90% population’ daily protein intake. ocean economy extends fisheries aquaculture encompasses extractive industries, mineral mining oil gas drilling, service sectors maritime transportation coastal marine tourism. Sustainably developing ocean economy, bolstering ability support livelihood opportunities contribute economic output, fostering stewardship coastal marine areas subjects United Nations Ocean Conference, held June 2017.17 Defining ocean/blue economy single internationally accepted definition “ocean economy” “blue economy,” terms varies countries, experts organizations. , Awni Behnam International Ocean Institute defines blue economy “living ocean ocean sustainable relationship.”18 UNCTAD published official definition ocean economy blue economy—terms treats synonymous— supports economic trade activities based sustainable management marine coastal biodiversity, ecosystems, genetic resources. UNCTAD’ concept blue economy favours activities natural-resource intensive, including -carbon approaches leverage environmental benefits, support sustainable livelihoods, reinforce global food security.19 addition variations terminology, countries institutions apply sectoral classifications marine-based economic activities. number ocean-economy sectors ranges United States America 18 United Kingdom Great Britain Northern Ireland, 32 Japan. , industries included sector vary country. , United Kingdom include seafood processing marine sector, France includes electricity generation thermal nuclear power, country classifies marine-based. definitions shape ocean economy contributes national economic output marine-based activities regulated. Policymakers regard marine-based sectors priorities Table 1: Definitions ocean-based economic activities selected countries Country Definitions/ criteria United States America Economic activity, : ) industry definition explicitly ties activity ocean, ) partially related ocean shore-adjacent zip code United Kingdom activities involve working sea. , activities involved production goods provision services contribute activities sea Australia Ocean based activity ocean resource main input access ocean significant factor activity Ireland Economic activity indirectly sea input China sum kinds activities development, utilization protection marine resources Canada industries based Canada’ maritime zones coastal communities adjoining zones, dependent activities areas income Zealand Economic activity takes place , marine environment, produce goods services activities, direct contribution national economy Japan Industry exclusively responsible development, , conservation oceans Republic Korea Economic activity takes place ocean, includes economic activity puts goods services ocean activity, ocean resources input Source: Kwang Seo Park (2014). study Rebuilding Classification Oceans Economy. 7HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY contribution addition, valued primarily source employment. , country defines categorizes ocean economy play major role policies marine-based economic sectors (Table 1). Geographic location important criterion defining ocean-based economic activities, countries apply legal, ecological, cultural interpretations defines coastal zone. , coastal areas defined extending 100 km landward shorelines, worldwide coastal zone encompass 61% global GDP. narrower definition 2003 Millennium Ecosystem Assessment suggests time analysis 40% global population lived coastal areas, comprise 5% Earth’ inhabitable land area.20 FAO definition coastal areas includes large inland lakes, Great Lakes region United States Canada. definition includes areas geographically distant ocean part ocean economy. , Canada classifies Montreal area, 2,000 km ocean, part ocean economy St. Lawrence River waterborne transportation link Montreal ocean. lack standard terminology uniform classifications, countries institutions define ocean economy sectors encompasses shed light range economic activities considered Blue BioTrade. Classification sectors activities ocean economy United Nations Department Economic Social Affairs (UNDESA), World Bank, UNCTAD21 developed classification system ocean-based economic sectors includes fisheries aquaculture, bio-prospecting, pharmaceuticals, personal-care products, mineral extraction, renewable energy, shipping transport-related industries, ports, monitoring, ocean management, carbon sequestration, waste management, tourism, .22 UNDESA/World Bank/ UNCTAD definitions formally include trade sector trade subsector. world’ oceans conduit international trade source traded goods services, classifications ocean economy list individual trade sectors, references trade relation fisheries transport. Trade-related activities generally included broader categories, “fishery production commercialization” “fishery marketing,” specific references trade indirect. instance, French classification system includes fish marketing trade component seafood-products sector, Japan classifies fresh seafood wholesale trade part marine-space-utilization sector, Republic Korea defines transportation sales part seafood-processing sector. Fisheries classifications, names, scopes details. United States sector named “living resources” includes fishing, fish-hatchery operations, aquaculture, seafood processing, seafood marketing— United States definition ocean economy includes Great Lakes region rivers, sector includes inland fisheries. United Kingdom classification include fish marketing trade, French classification . China defines marine fishery sector include marine aquaculture, fishing, fishing-related services, aquatic processing. Japan identifies subsectors open-space-activity sector, coastal fishing, offshore fishing, deep-sea fishing sea aquaculture industry, subsectors marine-space-utilization sector: frozen seafood, fishery-product bottling canning, aquatic food fresh sea food wholesale trade. Similarly, Republic Korea classification marine-based industry sector marine-related industry sector. marine-based industry sector includes capture fisheries, aquaculture, fishery- related services, marine-related-industry sector includes seafood processing, transportation sale, marine bio-food industry. Organisation Economic -operation Development (OECD) defines ocean-activities sector include capture-fishery subsector, encompasses catch production, seafood processing, preservation fish, crustaceans, molluscs, production fishmeal human consumption animal feed, seaweed ( Box 3 ) processing. classification “emerging ocean industries” includes aquaculture. European Union identifies economic groups 16 sectors part ocean economy. living-resources group comprises sectors: fisheries aquaculture blue biotechnology. fishery-aquaculture 8 BLUE BIOTRADE: sector includes commercial marine fisheries oceans coastal waters, marine aquaculture, freshwater aquaculture, processing preserving fish, crustaceans, molluscs, prepared foods, food products, manufacture oils fats. Tourism appears classifications ocean economy names “coastal leisure entertainment,” “marine coastal tourism,” . sector comprises wide range businesses, including boat dealers, aquariums zoos, travel agencies tour operators, hotels restaurants, cruise lines, marine sports, recreational fishing, . experts overlapping category, hotels, restaurants, bars, retailers, tourism service providers coastal area serve local residents business travellers addition tourists. magnitude sector greatly influenced “coastal area” defined. activities sectors, including energy, mining, transportation contribute ocean economy analysed report, Blue BioTrade focuses trade related biodiversity living resources. Blue BioTrade sectors include fisheries aquaculture, bio-prospecting biotechnology based marine coastal biodiversity food, pharmaceutical cosmetic industries, marine coastal tourism. activities included rubric Blue BioTrade, analysis concentrates core set activities concept’ parameters. Blue BioTrade encompasses carbon market credits Table 2: Selected components ocean economy relevant Blue BioTrade Ocean-based sectors Subsectors/activities Drivers growth Sea food catching harvesting Fish harvesting, mollusc crustacean gleaning Population growth, income growth, urbanization; rising food protein demand; improvements fishing, processing, storage, transportation technologies; improvements aquaculture technology efficiency; advances nutraceutical functional food technology Fish seafood processing, packaging, marketing Trade seafood products Aquaculture algal culture Harvesting aquatic coastal plant species Trade -food ocean products Marine biotechnology Increasing demand pharmaceuticals, health personal care products; advances genetic technology; increasing financial support pharmaceuticals products, increasing bio-prospecting activities Bio-prospecting Products incorporate natural ingredients, including seaweed-based biofuels Sustainable nature- based tourism recreation Sustainable hotel restoration services Global growth tourism; increasing accessibility remote locations; increasing dive certifications; travel costs; expansion innovative models tourism; combined tourism volunteerism Eco-tourism Tour operators Sport fishing Whale-watching, wildlife observation sustainable diving Marine parks, protected areas, situ reproduction sites, aquaria, museums, historical sites, . Activities supporting carbon sequestration Sustainable management forests mangrove estuaries Increasing coastal ocean-based conservation activities; expanding range green financing instruments; increasing number sophistication climate-change mitigation strategies REDD+ reforestation projects Carbon measurement services Carbon finance Land-, water- air-based monitoring Technological research development Increasing research ocean-related technologies; intensified focus conservation ecosystems speciesMarine environmental consulting Marine coastal management restoration Marine coastal protection, conservation, cleaning restoration services Increasing number national sustainability resilience strategies; greater focus active restoration; expanding scope marine protected areas Waste management disposal Treatment sustainable disposal nutrients wastes Increasing number national sustainability resilience strategies, increased recycling activity; intensified focus reducing natural-resource inputRecycling reuse Source: UNCTAD (2018) based World Bank DESA (2017). 9HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY generated -called “blue carbon habitats,” mangrove forests, saltmarshes, seagrass beds, economic activities rely marine coastal biodiversity tied practices sustainable ecotourism fishery management (Table 2).23 Estimating ocean economy range indicators gauge ocean economy. include traditional economic measures contribution GDP, sectoral addition, employment share, aggregate labour income, contribution export earnings, metrics focused social wellbeing, share population depends marine coastal economic activities livelihood, role marine resources local national food security, estimated marine coastal ecosystem services. indicators estimate ocean economy perspectives context policy goals. OECD estimated worldwide ocean economy, terms added, US$1.5 trillion. represents approximately 2.5% total gross added global economy. Offshore oil gas accounted largest share added ocean economy (33%), coastal maritime tourism (26%), ports (13%), maritime equipment (11%), maritime industries ( 5%). Industrial marine capture fisheries contribute 1% gross added ocean economy. Due data limitations, artisanal fisheries included OECD calculations, artisanal fisheries estimated represent 50% world fishery production.24 2014, UNCTAD estimated economic ocean-based trade-related sectors US$3 trillion.25 World Wide Fund Nature (WWF) estimated global world’ oceans US$24 trillion.26 Trade, transportation, maritime shipping valued US$5.2 trillion, values productive coastlines carbon-absorption capacity estimated US$7.8 US$4.3 trillion, . 2007, United Kingdom government estimated total sales world marine industries US$4 trillion, equivalent 3-4% global GDP.27 2012, Chinese government estimated ocean-based economic sectors 9.6% China’ GDP;28 2005 Republic Korea Maritime Institute estimated ocean-based economic sector added 5.5% Republic Korea’ GDP.29 marine coastal systems calculated unit area. , ecosystem services mangroves valued US$57,000 /ha/year, provide food materials, stabilize shorelines, improve water quality, buffer inland areas harbours storms, sequester carbon mitigate climate change, support wealth biodiversity.30 Similarly, coral reef ecosystems provide estimated US$29.8 billion net benefits year tourism, fisheries coastal protection.31Australia’ Great Barrier Reef generates estimated US$5.7 billion year direct indirect economic activities employ 69,000 people.32 OECD estimates ocean economy 31 million full-time jobs, employing 1% total global workforce 1.5% active global workforce. Capture fisheries account 36% oceans based employment, marine coastal tourism 23%. sectors account 1-8% oceans based employment. World Bank, fishery workers employed post-harvest chain, includes fish processing marketing.33 , indirect employment included, number jobs created ocean economy rises 350 million. , employment statistics present full picture ocean economy’ role global livelihoods. FAO34 estimates fisheries aquaculture provide livelihoods 10-12% world’ population. Small-scale capture fisheries provide 90% livelihoods, 97% workers employed small-scale capture fisheries live developing countries. noted , artisanal fishing produces roughly amount fish commercial fishing, artisanal fishing employ 25 times workers ( 12 million people) -eightieth fuel.35 links human wellbeing extend jobs formal market economy. Subsistence fishing barter common developing countries. ocean economy derived major components. contribution ocean-based economic activities market transactions recorded national accounts. 10 BLUE BIOTRADE: unobserved transactions, including large share artisanal subsistence activities, contributions household income food security. ecosystem services marine coastal areas provide, estimated empirically primarily form positive externalities. unsustainable resource exploitation represents large share component, living marine resources ecosystems underpin bulk ocean economy, significant share economic activities transformed Blue BioTrade financed special mechanisms. ( Box 2) minimum set criteria met. Box 2: Financing Blue BioTrade range potential financing mechanisms Blue BioTrade expanded dramatically years. international organizations, including Environmental Defense Fund, Resources Legacy Fund, Sea Pact, Conservation Finance Network, provide grants technical assistance firms, organizations, communities striving develop sustainable fisheries aquaculture. organization support development sustainable marine coastal tourism, , Solimar International Green Hotelier, focus exclusively tourism industry. proliferation financing options Blue BioTrade, local commercial banks regional development banks remain largest source financing sustainability-focused projects. Multilateral institutions CAF provide financing national subnational governments seeking strengthen capacity sustainably manage coastal marine resources. institutions provide direct project financing, tend focus mid-large-scale projects. Global Environmental Facility (GEF), replenished seventh time founding 1992, expansive range support multiple actors involved ocean economy. GEF works implementing agencies firms, organizations, local communities, national governments promote development sustainable fisheries support cooperative management international waters. information Blue BioTrade chain development financing, : Sustainable fisheries aquaculture http://www.seapact.org/; http://resourceslegacyfund.org/ensuring-sustainable-seafood/; https://www. edf.org/oceans/fisheries-finance; https://www.conservationfinancenetwork.org/2018/06/20/investing- -sustainable-fisheries; http://www.thegef.org/topics/fisheries. Sustainable tourism http://www.solimarinternational./; http://www.greenhotelier.org/destinations/finance-- sustainable-tourism/; https://www.conservationfinancenetwork.org/2017/08/29/ecotourism- investment-begins--flourish; https://www.usaid.gov/sites/default/files/documents/2151/ InvestmentWorkbook_4%5B2%5D.pdf; http://scioteca.caf./bitstream/handle/123456789/1190/ economic%20contribution%20of%20coastal%20tourism%20to%20GDP%20in%20LAC_CAF_ UNCTAD.pdfsequence=1&isAllowed=. Governmental capacity building, multilateral lending, international coordination http://projects.worldbank.org/searchlang=en&searchTerm=&sectorcode_exact=AF; https://www.ifc. org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability--ifc/company- resources/sustainable-finance/sustainable-fin-markets; http://www.oecd.org/tad/fisheries/; http://www. thegef.org/topics/international-waters. 11HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY 3. THE OCEAN ECONOMY AND BLUE BIOTRADE 3.1 Blue BioTrade economic sector Fisheries aquaculture factors driving growing demand fish seafood: rising income levels, changing diversifying dietary patterns, population growth. Oceanic resources important areas space farming ranching limited, marine wild capture fisheries aquaculture critically important sectors coastal countries. Marine fisheries generate fiscal revenue, contribute GDP, expand trade opportunities, create jobs, provide livelihoods coastal residents, important part cultural identity coastal societies. Coastal aquaculture provide benefits (Table 2). , increased capture fishing offshore resource extraction complicated efforts effectively manage marine fisheries aquaculture led mounting tension competing interests. Overfishing, destructive fishing practices, excessive trawling seafloor, wasteful discarding -catch; IUU fishing ( ABNJs), perverse incentives created subsidies, noncompliant flag states, piracy, unfair access agreements, limited benefit sharing, lack public awareness sustainable practices environmental impact characterize world’ fishing industry.36 estimated 35-38% global fishery production enters international trade. UNCTAD FAO, export fishery production rose US$152 billion 2017, marine wild capture stagnated 90 million tons.37 Steady prices increases reflect widening gap demand supply aquaculture compensate, -regulated aquaculture provide viable alternative capture fisheries overfished. seafood major food source coastal populations, capita fish consumption levels significantly higher global average, role fisheries aquaculture ensuring food security exceed export direct contribution GDP.38 ocean economy vital subsistence food -needed cash income poor marginalized coastal communities.39 -developed countries, remote coastal areas, fish major source animal protein critical source micronutrients.40 Encouraging governments, companies, local communities work create sustainable innovative fishery sectors, underpinned ecosystem restoration sustainable practices.41 Fishing culturally important, 12 million people engage artisanal fishing part traditional livelihoods.42 mainstay coastal communities, small-scale fisheries aquaculture operations key element social fabric.43 Seafood plays central role traditional cuisine regions, fundamental part cultural pride identity. Local cuisines contribute growing cultural- tourism subsector. , local production consumption seafood intensifying pressure - expanding industrial fisheries, export -cost seafood world provide fishmeal support agriculture aquaculture.44 parts world, competition access resources large-scale commercial fisheries small- scale artisanal subsistence fisheries created conflict. trend exacerbated stocks overexploited perverse incentives created subsidies contribute overcapitalization industrial fisheries, encourages overexploitation. process degrading fishery habitats ecosystems . sustain global fisheries sector, governments commit ecosystem-based approach managing fisheries aquaculture, companies adhere sustainable practices principles Blue BioTrade. Bioprospecting natural marine compounds Oceans enormous potential provide compounds pharmaceutical, nutraceutical, functional foods, personal care, .45 development bio-based industries exploitation unique genetic biochemical pool marine biomes led increase bioprospecting. Bioprospecting systematic search development chemical compounds, genes, organisms, natural products.46 bioprospecting inherently 12 BLUE BIOTRADE: complex costly activity, marine research development firms require high return investment. 30,000 compounds derived marine areas, 2008 1,000 compounds discovered year.47 Marine bioprospecting started areas long coastlines warm temperatures: invertebrates sampled Asian seas, Oceania, America, Africa Europe.48 1980s, bioprospecting marine products increased significantly, 1996 study patent applications marine natural products revealed substantial increase 1980 1995.49 Presently, United States Food Drug Administration (FDA) European Medicines Agency (EMA) approved drugs marine organisms, antitumor drugs, 20 marine-derived drugs clinical trials.50 2015 study anticancer compounds represented natural marine products discovered 1985 2012.51 compounds discovered period antibacterial, anti-inflammatory, antifungal, antiviral, analgesic properties. , Dictyolone 500 produced Maltese patent brown alga Padina pavonica treatment osteoporosis. Thousands marine species collected initial assessment, small amounts.52 Bio-chemicals produced marine invertebrates, algae, bacteria marine-derived drugs. instance, closely related compounds sponge treat cancer herpes virus. bioprospecting pharmacological purposes focuses compounds cytostatic cytotoxic activity. compounds play defensive ecological role deterring predators, suppressing competing neighbours, inhibiting bacterial fungal infections, protecting ultraviolet radiation. chemical compounds enormous medical Box 3: Case study: Innovations seaweed farming Seaweed farming common demand macroalgae-based foods cosmetic compounds add existing demand thickeners derived seaweed. , generation seaweed farming operations generating profits local communities, benefits . , Acuisur’ seaweed farming operation Paracas, Peru cultures seaweed strings suspended - area Paracas Bay. employing workers local community, operation livelihoods fishers displaced capture fisheries competition. operation benefits communities businesses wider Paracas region improving water quality increasing marine coastal biodiversity. seaweed farm boosts productivity scallop fishermen increases profitability restaurants serve scallops local seafood. Green Wave 3- farming model, adopted aquaculturists north-eastern United States, involves culturing seaweeds, bivalves scallops mussels, oysters. Fish grow- cages added mix. components Green Wave model increase local coastal marine biodiversity, productivity, water quality. 3- farms highly degraded waters “bioremediation,” process growing organisms clean polluted waters. Products created bioremediation human consumption, biomass energy generation inputs industrial processes. innovative aquaculture enterprises provide resources ecosystem services simultaneously typically surrounded buffer area enables broader coastal marine conservation. Innovative technologies approaches Acuisur operation Green Wave model facilitate food production biofuel energy generation. enhance quality coastal marine resources, promote job creation, create positive externalities businesses local communities. http://acuisurperu./acuisur/mision-vision/; accessed 22 2018. https://www.greenwave.org; accessed 22 2018. 13HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY potential, scientists barely begun explore applications. , microbial marine organisms frequently symbiotic relationships higher organisms cultivated pure culture, growth depends activity hosts. Cultivating microorganism axenic conditions creates risk part biosynthetic genes transcribed, biosynthetic genes expressed vitro. Exploiting genomic information uncultivable microorganisms overcome obstacle symbiotic association. addition, difficult secure adequate, permanent supply organisms compounds harming marine environment. Marine biotechnology presents ways overcome supply limitations: () aquaculture, fermenter cultivation, genetic engineering; (ii) enzymatic synthesis; (iii) modification chemical synthesis semi-synthesis. Genetic engineering exact knowledge genetic information isolation expression genes organisms cultivated–– approach research level. Chemical synthesis realized simple products. addition pharmaceuticals, marine-derived compounds create personal care products (.. algae, crustacean sea-fan compounds), nutritional supplements (.. algae fish compounds), artificial bone (.. corals). marine compounds industrial applications (.. fluorescent compounds jellyfish, glues mussels, heat resistant enzymes deep-sea bacteria).53 compounds pharmaceutical cosmetic applications.54 instance, anti-inflammatory analgesic compounds isolated Bahamian soft coral (Pseudoterigorgia elisabethae) led development bio-products Estee Lauder skin care cosmetics lines worth US$3-4 million year.55 Marine compounds figure prominently anti-aging beauty creams natural, -toxic sunscreen. cosmetic companies, including La Mer Biotherm, specialize “thalassotherapy,” utilizing compounds macro-algae seaweed. Trade ocean-derived cosmetics growing rapidly (Box 4), marine-based beauty creams created Phytomer consistently grown double- digit pace. marine-based cosmetic compounds include sponge collagen enhance skin, sunscreens marine carotenoids, seaweed- derived haircare products, sea mud facial treatments, brown algae-derived cosmeceuticals, shark-derived compounds believed promote youthful appearance.56 regulation, bioprospecting extraction marine compounds lead overexploitation environmental degradation. Fortunately, cosmetics companies demonstrate commitment sustainability marine conservation environmentally friendly practices source compounds sea, invest protecting places compounds derived. companies’ interest ensure sourcing areas remain pristine, environmental degradation negatively affect product quality public perception. marine bioprospecting date yielded compounds sufficiently promising provoke accelerate resource extraction, potential discoveries industries great. present, bioprospecting companies successful search pharmaceutical cosmetic compounds move discovery testing experimentation aimed creating natural pharmaceutical cosmetic compounds lab. compounds synthesized lab, aquaculture organism produce naturally cost efficient producing pharmaceuticals. Companies invest bioprospecting, pharmaceuticals, deal patents intellectual property rights. conducting expeditions identify potentially compounds, pharmaceutical firms base exploration traditional knowledge indigenous communities, saves time reduces cost random screening. , due insufficient regulation, limited negotiating capacity indigenous communities, lack enforcement mechanisms, indigenous communities countries reside deprived fair equitable sharing benefits arising , development, commercialization marine genetic resources acquired traditional knowledge. , unauthorized marine genetic resources traditional knowledge rise claims “bio-piracy.” addition, access benefit-sharing rules 14 BLUE BIOTRADE: apply marine bio-prospectors working national jurisdictions unclear. Finally, marine bioprospecting activities comply national wild-collection, access, benefit- sharing regulations line CBD Nagoya Protocol. regulations unclear collection marine genetic resources ABNJ. , 2018 United Nations lead negotiations creation international legally binding instrument protecting marine biodiversity ABNJ. Marine coastal tourism 2015, global travel tourism generated US$7.2 trillion revenue, 9.8% global GDP, supported 284 million jobs, 1 11 jobs worldwide.57 3.1%, growth rate travel tourism exceeded world’ economic growth rate. headwinds, sector estimated outperformed global GDP growth 2016.58 Tourism contributes GDP form capital investment employment, creates upstream downstream supply-chain effects. Marine coastal tourism fastest- growing subsectors global tourism industry. United Nations World Tourism Organization (UNWTO) estimates tourists visit coastal island destinations. Marine coastal tourism includes mass tourism located coastal areas, nature-based tourism activities whale-watching, seabird watching, scuba diving coral reefs, activities focused marine biodiversity. nature-based tourism ecotourism activities guidelines designed protect marine biodiversity ensure visits sensitive habitats remain ecologically sustainable.59 largest component marine tourism -called sun--sand tourism, requires beautiful beaches, clean water, aesthetically pleasing seascapes. sun-- sand tourism supported healthy coastal ocean ecosystems, naturally aligned Blue BioTrade. Fishers displaced fisheries declining fish stocks commercial fishing operations find alternative livelihood opportunities ecotourism sector (Box 5). Ecotourism , turn, create incentive ecosystem preservation fishery sector. Careful planning application Blue BioTrade principles ensure benefits marine coastal ecotourism widely shared. providing food resources, marine coastal habitats support wellbeing communities economic vitality coastal nations, benefits habitats complementary interrelated.60 , coastal habitats support nature-based tourism, creates demand local fishery products expands range livelihood opportunities, potentially reducing competition conflict fishery sector. coastal marine habitats, mangrove forests, protect Box 4: Case study: Algotherm cosmetics Algotherm cosmetic companies utilize marine compounds skincare wellness products. , Algotherm notable “Oceans Respect” line, emphasizes company’ investment sourcing ingredients -protected places good environmental condition manner consistent practices. Algotherm sources temperate seaweed North Atlantic coasts France, Canada, Ireland, Morocco, United Kingdom, tropical seaweed regulated places Australia, Malaysia, Philippines, Indonesia, Bermuda. company publicizes commitment respecting national regulations marine resource local regulations harvest season, ensures plants harvested reproductive periods. Algotherm harvesting methods harm habitats incidentally catch species. Export seaweed derived compounds conform international regulations, CITES, Algotherm committed environmentally sound technologies cosmetic production, including reliance renewable energy, methods conserve water heat, - impact packaging. company’ marketing stresses commitment marine conservation urges customers offer support . 15HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY ports harbours, stabilize shipping channels, buffer land storms, contributing economic health shipping sector boosting fishery output. nature-based tourism incentivises protection wetlands, habitats deliver additional ecosystem services add coastal area. Wetlands stabilize shorelines control coastal erosion prevent damage public infrastructure reduce fiscal costs incurred local national governments. Finally, benefits pristine coastal marine areas difficult economically— recreational opportunities, community pride, cultural integrity— factors contribute human wellbeing. reasons, determining maximum sustainable level coastal marine resource requires evaluating system’ ability continue generate resource (.., concept MSY), removal resource impact delivery services beneficiaries. method evaluation complicated, requires sectoral agencies, fisheries ministries, impact sector sectors. , successful application Blue BioTrade principles promote coordinated governance marine coastal areas, improving effectiveness regulations, reducing management costs, ensuring coastal marine resources generate Box 5: Case study: Whale watching Baja California Whale watching popular form coastal marine tourism, turn single largest segment global tourism. early days, whale-watching boats brought tourists close whales dolphins , regard activity stressing whales altering behaviour. , extensive guidelines exist observe whales responsibly. addition formal guidelines, local whale-watching activities rely customary law traditional knowledge, community-led whale-watching operations Mexico’ San Ignacio Lagoon. 1980s, San Ignacio Lagoon officially zoned refuge endangered whales site tourist development, series scientific studies grey whales established empirical foundation key laws regulations protect marine mammals observation. included NOM- ECOL-059-94, Fisheries Law, LGPEEPA, revisions federal penal code, Mexico’ ratification CITES 1984 declaration San Ignacio UNECSO World Heritage site 1993. part period, local inhabitants lagoon area increasingly engaged ecotourism services, enabling tourists observe grey whales establishing strong relationships scientists studying animals. Expanding employment opportunities ecotourism eased fishing pressures, positive effects marine biodiversity, tour operators interpreters fishers, extensive knowledge sea immense cultural respect whales. San Ignacio communities harnessed traditional knowledge management techniques government regulations create highly profitable sustainable whale-watching industry. community-based whale-watching enterprise generates US$3 million annually. initiative model rest Latin America, decade million tourists embarking whale-watching tours, generating US$80 million direct revenue US$270 million total revenue. http://www2.unwto.org/content/tourism--sdgs. Higham, ., . Bejder, . Williams. (2012). Whale-Watching: Sustainable Tourism Ecological Management. Cambridge University Press. Brenner, ., . Mayer, . Stadler. 2012. economic benefits whale watching El Vizcaí Biosphere Reserve, Mexico Economia, Sociedad Territorio Vol 16 (51); https://est.cmq. .mx/index.php/est/article/view/637; accessed 22 2018. Hoyt, . ̃íguez, . 2008. State Whale Watching Latin America. WDCS, Chippenham, United Kingdom; IFAW, Yarmouth Port, United States; Global Ocean, London, 60pp. 16 BLUE BIOTRADE: sustainable livelihoods benefits. Blue carbon credits Plants serve important functions, including producing oxygen, providing food, storing carbon slow anthropogenic climate change— process carbon sequestration. Tropical forests long believed sequester largest amounts carbon, years research shown marine plants trap carbon equal greater rate tropical forests.61 Mangroves sequester carbon high rates, mechanisms place verify carbon credits mangrove forests, enabling traded carbon markets.62 Generating “blue carbon credits” yield revenue, weaknesses carbon markets call economic viability mechanism question. blue carbon credits provide incentive protect coastal ecosystems, benefits carbon sequestration rarely generated motivation overcome economic political costs protecting marine coastal habitats. providing viable standalone solution, carbon sequestration complement revenue-generating ecosystem services, collectively incentivizing conservation habitats biodiversity . , carbon credit generation complement fish-nursery habitat protection ecotourism-driven conservation, part package interventions encourage sustainable marine resources. experience UNCTAD CAF, augmenting BioTrade activities carbon sequestration measurement financing magnify benefits local areas creating short- long-term incentives conservation sustainable . 3.2 Threats sustainable coastal marine ecosystems Inadequately regulated coastal development, pollution, overexploitation fisheries, uncontrolled growth tourism carrying capacity sensitive habitats badly damage degrade coastal marine ecosystems. Unsustainable resource reflects weaknesses governance, inappropriate policies, focus short-term economic gain long-term planning, limited institutional capacity manage population growth movement coast, prevalence corruption, reluctance governments - management arrangements local communities user groups. , important driver marine degradation inadequate public awareness benefits healthy productive coastal ecosystems provide, opportunities benefit sustainably. Blue BioTrade highlight issues build demand sustainable development. international literature reflects decades experience managing marine coastal areas ecosystem resources sustainably. Diverse tools approaches , practices elaborated virtually situation. , technological advances monitoring, surveillance, modelling, information management greatly improved efficacy marine coastal management. knowledge base sustainably oceans coasts increasingly string, greater incentives needed spur action. addition bolstering fiscal revenue, development Blue BioTrade encourage governments adopt stronger policies areas integrated coastal management ecosystem- based management, marine spatial planning ocean zoning. Similarly, investments green infrastructure complement tourism development enhance quality ecosystem services increase coasts visitors residents. demonstrated success policies projects deliver environmental, economic, social benefits lead replication expansion sustainable development approaches. actual potential economic individual ecosystem service assessed, ecosystem exists isolation ecological processes ecosystem services. Natural systems densely connected, human wellbeing depends multiple ecosystem services delivered simultaneously. Due linkages feedback loops, poor development decisions carelessness loss habitat species potentially ramifications ecosystems stakeholder groups. , full accounting ecosystem services oceans coasts provide shed light trade-offs involved policies set stage successful sustainability-focused policies. context, Blue BioTrade provide critical incentives support ecologically, economically, socially responsible marine space resources. 17HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY 4. APPROACHES TO BLUE BIOTRADE Blue BioTrade utilizes approaches achieve environmental economic sustainability, equitable benefit sharing. ecosystem approach, ecosystem-based management (EBM) minimize negative ecological impacts resource .63 -chain approach, focuses sustainability, addition, employment, income generation benefit sharing, inter alia, entire chain, supplier user. approach adaptive management, recognizes environmental socio-political conditions changing interventions constantly amended ensure sustainability. Blue BioTrade, approaches devote special considerations unique characteristics trade depends marine biodiversity, including openness marine ecological systems, challenges restricting access, lack private property rights traditional sense, opacity supply chain. fourth approach sustainable livelihoods, focuses role natural resources providing employment income, poor households. approach applicable Blue BioTrade, concentrates addressing marine coastal communities leveraging development opportunities ocean-based chains. sustainable livelihoods approach Blue BioTrade involves working artisanal fishers, aquaculturists, tourism operators, informal workers ocean-based sectors. 4.1 Ecosystem-based management rising share global population64 lives coastal areas, world’ nations continuously expanding marine coastal economic activities ocean space. process intensifying pressure marine coastal habitats, decreasing productivity profitability ocean- based sectors, increasing vulnerability coastal communities cities effects climate change. context, EBM widely methods managing ocean minimizing negative impacts exploitation. EBM approach catalysed trends marine management unfolded 30 years. shift focus fishery sector stock production MSY broader perspective extraction fisheries resources affects fisheries wider ecosystem— model ecosystem approach fisheries. development widespread adoption integrated coastal management systems. examining individual resources, species, ecosystem services isolation, EBM approach adopts holistic approach interactions interdependencies ecosystem, including role humans. facets marine EBM : () understanding connections ecosystem elements, including species, habitats, human activity; (ii) accounting direct indirect contributions ecosystem services human wellbeing; (iii) assessing cumulative impacts human activity; (iv) managing resources multiple ; () learning adapting changing circumstances. Marine coastal habitats provide space food valuable fish species provide resources aquaculture, habitats stabilize shorelines, buffer land infrastructure storms, clean purify water, create opportunities tourism recreation, provide inputs global manufacturing supply chains local cottage industries, support web biodiversity entire planet healthy productive. ecosystem services interlinked, unsustainable habitat result loss services degradation valuable resources. Marine coastal areas world threatened cumulative pressures large-scale urbanization, tourism development, energy generation, industrial farming. small percentage EEZs coastal countries sort protection, marine reserves marine parks poorly managed. marine coastal protected areas operate effectively include high-profile habitats coral reefs. types coastal habitats—including coral reefs, wetlands, kelp beds, seagrass meadows, sandy coasts, shellfish reefs, upwelling areas—produce multiple goods services. specific ecosystem services support fisheries aquaculture include direct supply food space 18 BLUE BIOTRADE: target species, vital indirect services nutrient cycling prey production, areas escape predation, access habitats, access spawning grounds, including, case anadromous species,65 freshwater spawning grounds (Box 6). Product safety quality vital profitability marine fisheries, ecosystems maintain water purity, suppress disease, food webs balance essential safety quality fishery products. , rise sustainability certification–– price premium offers–– increasing incentives protect habitats support fisheries enhance product . , habitats pressure types resource , including energy extraction economic activities, indirect degradation. Understanding links ecosystems human wellbeing crucial ensure sustainable coastal marine resources (Figure 3). mankind increasingly reliance sea, marine managers work ensure ocean ecosystems remain healthy productive order maintain valuable resources services support livelihoods, industries, economies. application Blue BioTrade principles, including ecosystem services valuations, environmental impact assessments (EIAs), strategic environmental assessments (SEAs) individual sectors maintain balance ensure interlinked ecosystem services continue deliver complementary benefits. Adopting Box 6: Sustainable trade wetlands-derived products services, Ecuador Ecuadorian BioTrade Programme, Ecuadorian Ministry Environment, Trade Investment Promotion Corporation (CORPEI) EcoCiencia implemented BioTrade project called “Promoting Sustainable Trade Products Services Derived Wetlands Ecuador” (WGP214 29). project funded Dutch Ministry Foreign Affairs/Directorate-General International Cooperation (DGIS) part “Partners Wise Wetlands” programme, managed Wetlands International support Convention Wetlands International Importance (Ramsar Convention) UNCTAD. -year project aimed consolidate wetlands conservation poverty alleviation fostering sustainable trade wetland products services. program developed database wetlands projects Ecuador, program’ pilot initiatives related ocean economy: Sustainable management crabs (Ucides occidentalis) wetlands areas concession 6 July Crabs Association. project, implemented partnership Foundation Ecológica Rescate Jambelí, located buffer zone Ramsar site, Reserva Ecológica Manglares Churute. project strengthened governance 120-member 6 July Crabs Association enabled learn population dynamics crabs ensure sustainable harvest. Sustainable management commercialization shellfish (Anadara similis . racemosa). Province Esmeraldas Canton Muisne, partnership Fundació Fundecol shellfish associations implemented project benefitted 600 families indirectly benefitted 2,500 . project managed, repopulated, monitored state molluscs canton experienced 85 percent depletion wetlands due unsustainable practices. result development commercial market shellfish active participation local communities. project included awareness-raising experience-sharing component managing shellfish enclosures, workshops development technical documents highlighting importance wetlands outlining principles, criteria indicators ensuring social, economic environmental sustainability. Case study based Argüello ., Briones .., Flachier ., Jaramillo . Tacoamá . (2003). Proyecto de Promoció del Comercio Sustentable de Productos Servicios de los Humedales del Ecuador. CORPEI / EcoCiencia. 19HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY Blue BioTrade principles criteria facilitate verification tools certification methodologies, Standard Union Ethical BioTrade national regional BioTrade partners. 4.2 chain approach decades, -chain approach powerful analytical tool strategic business planning development policy.66 chain interdependent system network productive activities exists firms.67 Efficiency gains achieved reducing costs stage production linkages stages. BioTrade -chain methodology involves: () identifying sectors untapped potential Blue BioTrade; (ii) selecting targeted sectors chains; (iii) conducting participatory assessment sectors chains; (iv) formulating sectoral -chain development strategy; () implementing, monitoring, evaluating, revising strategy.68 -chain approach designed maximize creation reducing costs, mitigating negative economic ecological impacts eliminating inefficiencies, optimizing sustainable resource , increasing equitably sharing revenues productive actors, creating products command price premium. added chain includes wages salaries, profits entrepreneurs asset owners, fiscal revenues, producer surplus, consumer surplus, positive externalities. Reinvesting returns Blue BioTrade create virtuous cycle sustainability growth. BioTrade initiatives target existing segments consumer market, focus creating products demand exists. BioTrade case studies reveal critical importance market-driven interventions account key issues69 market access, market focus, partnering, collaboration information sharing, innovation. Blue BioTrade account common-pool nature marine coastal biodiversity products incorporate mechanisms define allocate rights resources manner consistent long-term sustainability. Figure 3: Connectivity ecosystems, potential negative impacts human wellbeing Loss seagrass habitat Loss coral reef habitat Loss tourism revenue Decreased �sh stocks Increased coastal erosion Habitat destruction De clin ing hu man wel -bei ng coastal opulation Decressed storm buf fering Increa sed sed ime nt po lu ta nt Increassed sedim ent pol lutants Dec reas ed ri Source: Agardy al., 2011; UNEP EBM Manual. 20 BLUE BIOTRADE: Fisheries chain -chain approach applied fisheries, small-scale fisheries, marine bio-resources, fish considered private property harvested. jurisdictions require fishing licenses, private property rights play fish target species caught. fisheries chain starts marine aquaculture environment ends consumer, parallel chains exist fresh, preserved, processed goods. fisheries chain disaggregated activities: () harvesting: catching, cleaning, sorting, grading, weighing; (ii) landing: cold storage, icing, distribution manufacturing point; (iii) cleaning: de-heading, slime removal, meat/bone separation, discarding waste; (iv) processing: salting, canning, packaging, branding; () services marketing: certification, transportation, marketing, wholesaling, retailing (Figure 4). Fisheries chains differ depending species, jurisdiction, scale production, local socioeconomic conditions. relevant small-scale fisheries, local conditions define characteristics entire chain, jurisdiction chain differ fisher fisher,70 species species.71 Species traded major global commodities— tuna, salmon, shrimp— tend longer, complex chains species primarily traded local markets.72 Fisheries chains differ significantly conditions prevail individual domestic, regional international markets.73 , industrial fleets large-scale aquaculture producers target species (.., tuna, swordfish, salmon, shrimp) artisanal small-scale fishers aquaculturists (.., small medium pelagic white blue flesh fish, octopus, squid, .). stage chain, added expressed terms sale prices landing, transportation fees, marketing fees, wholesale margins, retailer margins, profits intermediaries, final consumer prices, taxes levied stages process. chain supported horizontally integrated firms agents provide tangible services, suppliers fishing gears boats, intangible services, experts targeting, catching, handling specific species. -chain analysis identify opportunities increase economic benefits fishery efficiently utilizing scarce ecological resources improving processing, marketing distribution. -chain analysis promote sustainability, local fishers fishing communities remain competitive environment increasing competition, ensure chains deliver equitable benefits prevent abuse market power. Combining -chain analysis ecosystem-based management approach align -chain analysis EBM approach, practices apply ecosystems involved chain. include harvesting site, sites processing occurs waste disposed . case fisheries rely live bait, (.., pole line fisheries tuna), chain includes ecosystem bait supplied. Due dependency fisheries chain multiple ecosystems, short-term profit maximization inconsistent ecological sustainability.74 , economic agents maximize marine resources concurrently, sectoral development conservation plan trade-offs involved.75 series ecosystem approach small-scale fishery chains, FAO describes importance assessing linkages ecosystem sustainability livelihoods Figure 4: simplified representation fisheries chain Harvesting: catching, cleaning, sorting, grading, weighing Landing: icing, cold storage, distribution point manufacture Cleaning: deheading, slime removal, cutting, seperation Processing: cold storage, icing, salting, cannery, packaging, branding Services marketing: transportation, wholeseller, retailer, consumer 21HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY local communities.76 Accounting capture methods technologies small- scale fishers, -chain analysis assess performance terms catch potential capacity respect stock. Harmonizing -chain EBM approaches Blue BioTrade framework requires developing institutional cooperation mechanisms promote equitable benefit sharing curb ecologically damaging practices. Blue BioTrade initiatives special circumstances poor vulnerable communities provide means improve quality life livelihoods, sustainability reflects balanced integration economic growth, social responsibility, ecosystem management. Defining clear set principles criteria Blue BioTrade facilitate creation sustainable equitable chains based marine biodiversity. 4.3 Adaptive management Ecosystems human communities support changing rapidly, management practices change . Pressures natural habitats provide essential ecosystem services intensifying, productivity profitability degraded ecosystems decreasing, coastal communities cities increasingly vulnerable effects climate change. BioTrade context, adaptive management contributes implementation sustainable practices, identification impacts species ecosystems, continual improvement BioTrade initiatives, implementation corrective measures ongoing basis. Changing environments evolving societal expectations require marine management adapt time stay efficient effective. true management terrestrial resources, explicit adaptive management greater sea, ecological obvious dynamics accelerated. Due open, interconnected nature marine ecosystems, ensuring sustainability requires interinstitutional monitoring collective mechanism designing rules regulations marine resources. , interinstitutional adaptive management span national borders, marine resources shared countries regions. Adaptive management stages chain, source ecosystem consumer. Harvesting practices source adapted maintain sustainable levels remain ecological carrying capacity. Distributors find suppliers, transporters, processors, actors chain continuously adjust practices incorporate information technologies. Finally, retailers alter marketing strategies ensure effectively promoting sustainable trade. Adaptive management effectively track adjust rapid environmental social . impacts climate change, , drive environmental change rapidly sea land. , increasing ocean acidification warming dramatically impact marine production,77 shellfish coral reefs. Climate change eroding resilience marine ecosystems effects overexploitation. , seawater surface temperatures affect migratory partners, altering harvesting areas shifting national rights stocks species. Blue BioTrade embraces adaptive management approach measurable indicators assess environmental, economic, social create mechanisms improve resource management enhance resilience ecosystems. 22 BLUE BIOTRADE: 5. BLUE BIOTRADE AND THE CURRENT OCEAN GOVERNANCE FRAMEWORK Oceanic Circle, Elisabeth Mann Borgese stated ocean governance “ process, completed. Ocean governance terrestrial governance parts system. emerging system responds Ocean earth. respect living .”78 , ocean governance continues evolve. 1982, UNCLOS developed framework international agreements surrounding ocean marine issues, continuous emergence challenges required updated implementing agreements, United Nations Agreement Conservation Management Straddling Stocks Highly Migratory Fish Stocks (United Nations Fish Stocks Agreement 1995). multilateral environmental agreements cover issues related : () land marine biodiversity, CBD Nagoya Protocol; (ii) wetlands, Ramsar Convention; (iii) international trade endangered wildlife, CITES ; (iv) highly migratory species, Convention Conservation Migratory Species Wild Animals. FAO-backed treaties, regulations, nonbinding guidelines sustainable fisheries marine harvesting important ensure sustainable marine management, legal access resources, maintenance fish populations MSY. United Nations bodies periodically codified norms ocean , including UNCTAD, World Trade Organization (WTO), International Labour Organisation (ILO), International Maritime Organization (IMO), important implications marine-based chains. Compliance relevant international treaties national laws regulations key BioTrade principle. , maintaining compliance regulations typically easier terrestrial context marine context, terrestrial conservation sustainability policies primarily implemented national authorities regional cooperation agreements, marine conservation inherently multilateral regional activity. Multiple regulatory systems cover issues ranging marine safety biodiversity protection conservation pollution prevention, United Nations agencies specific mandates encompassing areas. National regulatory structures designed ensure sustainable marine resources, absence single, comprehensive set regulations, regulatory structures integrated piece piece existing legislation. piecemeal approach continue term, SDGs strive promote holistic approach resource management. addition, global regional governmental nongovernment organizations (NGOs) work marine environmental issues, private sector important role play initiatives fishery improvement projects certification schemes. initiatives implemented improve coordination organizations dealing marine management United Nations system. UN-Oceans created 2003 , inter alia, strengthen coherence United Nations activities related ocean coastal areas.79 addition, International Seabed Authority (ISA) established UNCLOS ensure states parties convention organize control activities ABNJs.80 United Nations Division Ocean Affairs (UN DOALOS) exclusively focuses maritime issues. United Nations Oceanographic Commission (IOC) deals oceanography marine science, International Maritime Organization (IMO) concentrates shipping maritime pollution. United Nations agencies mandates touch ocean-related issues, including UNCTAD (trade- related aspects), FAO (sustainable management fish stocks food security), UNEP (conservation regional seas programmes), UNESCO (cultural heritage), WMO (meteorological aspects), ISA (deep-sea mining). Major NGOs involved maritime issues include WWF, Greenpeace, Oceana, Nature Conservancy, Wildlife Conservation Society, Conservation International, RARE, Seas Risk. Effective tenure systems enhance economic efficiency social stability, mechanisms guard hazards open access precondition sustainable resource management. , marine- resource tenure systems rights present unique challenges. fisheries, tenure frequently considered “” “usufructs” .81 Tenure rights fisheries part broader system formal 23HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY customary rights, including traditional communal rights. access fishery resources closely linked access land, fishers fishing communities secure coastal waterfront land rights, land fishery tenure rights jointly managed. Tenure relevant small-scale artisanal fishers, community based-tenure systems areas. 5.1 UNCLOS relevant implementing agreements cornerstone current system global ocean governance UNCLOS, acts “Constitution Oceans.” UNCLOS developed implemented sectoral regional agreements, plans, policies. UNCLOS international convention stipulates framework national jurisdiction maritime spaces. UNCLOS, nations sovereign rights common responsibilities seas living - living resources jurisdictions. UNCLOS splits marine areas main jurisdictional zones, legal status (Box 7). classification system foundation marine governance, specific guidance states’ rights responsibilities zones. importance UNCLOS , Blue BioTrade reflect relevant multilateral environmental conventions treaties, national laws regulations (Annex ). UNCLOS Preamble relevant Blue BioTrade, refers equitable efficient utilization sea resources, Articles 61 67, concern conservation utilization living marine resources, stocks marine life, highly migratory species, marine mammals, anadromous, catadromous, sedentary species national EEZs. articles describe aspects sustainable marine-resource management.82 United Nations Fish Stocks Agreement (1995) sets basic principles conservation management straddling highly migratory fish Box 7: Marine jurisdictions 1. Internal Waters: include littoral areas ports, rivers, inlets marine spaces landward baseline (-water line) port state jurisdiction enforce domestic regulations. Enforcement measures violations standards port violations occurring coastal state’ maritime zones . 2. Territorial Sea: covers 12 nautical miles baseline. area, coastal states unlimited jurisdiction (including foreign) activities restrictions imposed law. 3. Contiguous Zone: intermediary zone territorial sea high seas extending enforcement jurisdiction coastal state maximum 24 nautical miles baselines purposes  preventing punishing violations customs, fiscal, immigration sanitary legislation. 4. Exclusive Economic Zone (EEZ) intermediary zone lying territorial sea high seas maximum extent 200 nautical miles. high seas freedoms general navigation principles remain place, zone coastal state retains exclusive sovereignty exploring, exploiting conserving natural resources. coastal state action prevent infringement parties economic assets area including, inter alia, fishing, bio- prospecting wind-farming. order safeguard rights, coastal state measures including boarding, inspection, arrest judicial proceedings ensure compliance international laws regulations. 5. High Seas: lie 200 nautical miles shore, open freely , governed principle equal rights . High Seas, state act interfere justified equal interests states. Convention establishes freedom activity spheres: navigation, overflight, placement cables pipelines, artificial islands, fishing,  marine scientific research. Source: Simon . Williams. Law Sea (2014) Mechanisms: Examining UNCLOS Maritime Zones. Maritime Executive 82014. : https://www.maritime-executive./article/Law---Sea- Mechanisms-Examining-UNCLOS-Maritime-Zones-2014-12-01 24 BLUE BIOTRADE: stocks.83 elaborates fundamental principle nations cooperate ensure conservation optimize utilization fishery resources EEZs. Agreement stipulates conservation management fish stocks based precautionary approach scientific information. management principles relevant fish stocks migrate EEZ . Sovereign nations rights responsibilities high seas, freedom navigation jurisdiction domestically registered ships. Governments responsible issuing licenses permits access resources, protect endangered species, preserve marine environments territorial waters.84 countries, responsibilities start coastline (baseline). coastal communities, reliant fishing, national laws reconciled traditional rights marine resources. countries experienced protests local fishing communities infringement traditional rights, restrictions fishing Marine Protected Area (MPAs). 5.2 Governance high seas specific agreements governance marine management high seas exist, lack global enforcement mechanisms. UNCLOS establishes freedoms high seas, elaborated convention , international regional treaties conventions, nonbinding guidelines, national laws. : () navigation; (ii) overflights; (iii) placement submarine cables; (iv) construction artificial islands; () fishing; (vi) scientific research. , navigation, fishing, scientific research important development Blue BioTrade high seas. activities high seas subject UNCLOS principles obligations (.. conservation cooperative management) monitored implemented national governments specialized treaties. general principles conservation sustainable marine biodiversity High Seas origins customary international law codified international environmental agreements -binding declarations, including 1972 Stockholm Declaration Human Environment, 1992 Rio Declaration Environment Development, Rio +20 Declaration, Call Action 2017 United Nations Oceans Conference. CITES regulations “introductions sea” (IFS) important exception UNCLOS freedoms. IFS types trade regulated CITES, IFS regulations legally binding 183 parties CITES. IFS regulations refer specifically specimens high seas.85 IFS certificates authorizing collection granted scientific authorities demonstrate activities sustainable, specimens commercial purposes, , specimens living, authorities suitably equipped care . MPA high seas component trilateral Pelagos Marine Sanctuaries Conservation Mediterranean Marine Mammals, established 1998. , ten high-seas MPAs created members Convention Protection Marine Environment North-East Atlantic (OSPAR) North Atlantic Fisheries Commission.86 areas “- zones” extraction marine resources prohibited conservation purposes. , provisions high-seas MPAs formally incorporated international law. 2017, United Nations General Assembly discussions began delineate conditions MPA standards, governance regimes, environmental impact assessments high seas part process formulating international instrument biodiversity ABNJs, . 5.3 Multilateral environmental agreements CBD comprehensive binding agreement conservation biological diversity worldwide. governs sustainable biological resources equitable sharing benefits arising utilization genetic resources, including access genetic resources relevant technologies. Key CBD targets, protocols, mandates dealing marine coastal resources include: () Jakarta Mandate Conservation Sustainable Marine Coastal Biological Resources, adopted CBD/COP 2 (1995); (ii) 12 Malawi Principles Ecosystem Approach Land, Water Living Resources (CBD/COP4, 1998), refer specifically marine coastal biodiversity; (iii) Nagoya Protocol,87 operationalizes CBD 25HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY Articles 1 15 access genetic resources terrestrial marine sources equitable benefit sharing, covers marine genetic resources national jurisdictions;88 (iv) 2011-2020 CBD-Strategic Plan Aichi targets, specifically targets 3, 6-12, 16, relate marine ecosystems resources. rights conditions accessing marine genetic resources international waters clarified developed. countries participated 2012 Rio+20 Conference89 recognized “ importance conservation sustainable marine biodiversity areas national jurisdiction” committed urgent action, 2015 General Assembly passed resolution develop international legally binding instrument United Nations Convention Law Sea (Resolution UNGA/RES/69/292). 2016 2017, General Assembly advised draft text international legally binding instrument, key elements identified member states consolidated working paper. United Nations negotiations legally binding international instrument biodiversity ABNJ start York late 2018. process relevant Blue BioTrade observed closely, aspects dealing genetic resources bio-chemicals development natural ingredients, research development & activities aquaculture, personal care, biotechnology pharmaceutical sectors. CITES, Washington Convention, multilateral treaty designed ensure sustainable international trade wild flora fauna. regulates trade species listed appendices common set import/export permits. CITES Appendix identifies threatened species restricts trade -commercial purposes. CITES Appendix II identifies species threatened trade regulated. Trade species remains legal, long sustainable, legal, traceable, “ export specimens species limited order maintain species range level consistent role ecosystems occurs.” Appendix III lists species protected country requires CITES member states assist controlling trade species. controls established CITES Appendix II apply trade transactions regulated Convention, including import, export, -export introduction sea. important marine species subject regulated trade CITES, sharks, ray, corals, molluscs commercial (Box 8). noted Section , set minimum eligibility requirements Blue BioTrade stipulates activity negatively affect endangered species, including listed CITES Appendix 1. , BioTrade fosters sustainable management trade species listed CITES Appendices II III-listed species helps ensure benefits generated trade shared -chain stakeholders. 1971 RAMSAR Convention established framework conservation sustainable wetlands resources. including marine coastal wetlands. Marine wetlands saltwater wetlands encompass coral reefs aquatic subtidal beds seagrass kelp. Coastal wetlands include estuarine lagoons, sand pebble shores, tidal lagoons, coral riffs, mangrove tidal marshes, shallow seas, coastal floodplains, dune swamps. marine coastal wetlands provide important nursery feeding areas fish, molluscs, turtles, dugongs marine species, provide habitat migratory water birds. Coastal marine wetlands greatly valued recreational tourism activities, important carbon-capture sinks. Bonn Convention Migratory Species (CMS) international treaty aimed protecting terrestrial, marine, avian species migratory ranges. convention operates aegis UNEP. signed in1979, effective 1983, 120 parties member states. CMS implementing agreements set policies provide guidance specific issues. Blue BioTrade activities targeting migratory marine species reflect obligations CMS United Nations Fish Stocks Agreement . 1972 World Heritage Convention important international conservation agreements. primary mission identify protect world’ natural cultural heritage safeguarding places outstanding universal . World Heritage Convention’ operational guidelines define procedures inscriptions, site protections, danger- listings, provision international assistance World Heritage Fund.90 listed 26 BLUE BIOTRADE: world heritage site implies conservation obligations, offers important tourism opportunities create jobs local communities. 5.4 FAO regulations FAO leads global regulatory effort combat IUU. 2009 Port State Measures Agreement 2001 International Plan Action (IPoA) Prevent, Combat, Deter IUU Fishing developed part effort. binding international treaty countries agree close ports illicit fishing products, increasing risk cost IUU fishing. defines IUU fishing lists comprehensive, effective, transparent measures nations reduce . Additional FAO instruments contribute fight IUU fishing include Global Record Fishing Vessels,91 Voluntary Guidelines Flag State Performance. products IUU fishing , definition, ineligible Blue BioTrade. legally sustainably harvested sourced products traceable origin valid inputs Blue BioTrade chains. Box 8: Case study: Queen conch Caribbean gastropod mollusc Strombus gigas, queen conch, key marine species regulated CITES Caribbean. regional trade queen conch meat shells important terms volume, , socio-economic significance. queen conch important livelihood opportunities coastal communities. Bahamas , domestic consumption conch valued approximately US$6 million year 2012, exports earned US$3 million. 70% queen conch exports consumed United States. queen conch culturally important region features Caribbean cuisines. 1970s 1980s, queen conch massively overexploited range, harvesters moved free-diving collection scuba gear, allowed fishers exploit previously untouched deep-water populations. loss seagrass development contributed population’ decline. 1992, queen conch listed Appendix II CITES, states imposed moratorium harvesting. conch populations rebounded, harvesting restarted carefully regulated management. time, 36 Caribbean nations dependent territories established export quotas, harmonized fishery rules, strengthened trade controls. address issue traceability, queen conch producer states agreed 2012 create auditable “chain custody” catch locations final destinations, consolidating catch data previously collected landings exports. Continued efforts led CITES, national regional fisheries organizations, international institutions reduced overfishing ensured legal sustainable trade queen conch. Caribbean states recognized importance joint management efforts, CITES Decisions 17.285 17.289, implemented Regional Queen Conch Fisheries Management Conservation Plan based 2010 memorandum understanding. Regional queen conch production recovered -managed, profitable, sustainable. http://www.fao.org/docrep/006/Y5261E/y5261e07.htm; accessed 22 2018. FAO Bahamas Dept Marine Resources. 2016. Fisheries Aquaculture Bahamas: Review. https://www.bahamas.gov.bs/wps/wcm/connect/e1d636dd-1a9b-4661- 9e38-ba9bf546a534/FINAL+Bahamas+Fisheries+%26+Aquaculture+Sector+Review+17Nov16. pdfMOD=AJPERES; accessed 17 2018. CITES. 2003a. Progress implementation review significant trade (phases IV ). Report nineteenth meeting CITES Animals Committee. AC19 Doc. 8.3; https://cites. org/sites/default/files/eng/prog/queen_conch/docs/2003%20-%20CITES-TRAFFIC%20Report%20 %20Review%20of%20Significant%20Trade%20%28AC19%20Doc.%208.3.%20Annex%29.pdf; accessed 22 2018. https://cites.org/eng/prog/queen_conch/introduction; accessed 17 2018. 27HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY FAO regulates wild-capture activities nonbinding 1995 Code Conduct Responsible Fisheries. purpose develop fisheries biologically, technically, economically, socially, environmentally, commercially sustainable supporting creation adoption mechanisms control fishery operations, development food- safety quality systems, design measures mitigate post-harvest losses, implementation plans combat IUU fishing protect endangered species. Code Conduct addresses issue fishery tenure, small-scale fisheries (Art 6.18), describes responsibilities governments develop institutional legal frameworks coastal resources, account rights coastal fishing communities (Art.10.1.3).92 Due focus sustainability, Code Conduct inform Blue BioTrade principles criteria. FAO’ 2012 Voluntary Guidelines Responsible Governance Tenure Land, Fisheries Forest Context National Food Security promotes secure tenure rights equitable access fisheries means eradicating hunger poverty, supporting sustainable development, enhancing environmental quality. Voluntary Guidelines inform Blue BioTrade principles respect actors’ rights, tenure security, access marine resources knowledge (Annex ). relevant nonbinding FAO instruments marine governance include: International Guidelines Ecolabelling Fish fishery Products Marine Capture Fisheries (2009); International Guidelines Deep Sea Fisheries High Seas (2009); International Guidelines Bycatch Management Reduction Discards (2011); Technical Guidelines Precautionary approach capture fisheries species introduction (1995). norms, commitments, nonbinding agreements provide foundation technical guidance practices Blue BioTrade. 5.5 Regional fishery governance early 1970s, governments regional multilateral institutions developed binding nonbinding agreements conservation regional marine environments. efforts initiated UNEP Regional Seas Programme. Current regional agreements involve 149 states, limited respective areas national jurisdiction. , regional agreements pertain marine protection high seas, high-seas areas adjacent national jurisdictions. agreements cover 18 marine regions, differ greatly extent characteristics. regional agreements focus fisheries management, purview regional marine organizations. Regional marine organizations fall categories. Regional seas programs (RSPs) cover 18 marine coastal regions. Fourteen RSPs created auspices UNEP, administers . remaining independent. Regional fishery bodies (RFBs) include 21 regional fisheries management organizations, empowered establish legally binding regulations fisheries, 41 advisory bodies. RFBs enable governments work manage shared fishery resources, restricted jurisdictions contracting parties. , regional mechanisms Antarctic, Mediterranean, North Atlantic, South Pacific conduct activities exclusively ABNJs. Finally, United Nations National Oceanic Atmospheric Administration (NOAA) administers 64 large marine ecosystem projects, Global Environment Facility administers additional 21. projects webs complementary initiatives designed implement ecosystem approach managing marine coastal resources. Blue BioTrade activities reflect agreements, regulations, policies, stocks assessments, joint actions regional fisheries programme bodies. 28 BLUE BIOTRADE: 6. BLUE BIOTRADE, STANDARDS, LABELLING, AND CERTIFICATION addition compliance relevant national regulations international agreements, BioTrade embrace supportive voluntary standards, including labelling certification schemes adopted countries private organizations. mandatory regulations voluntary standards consistent promoting sustainable production consumption practices advancing SDGs 2, 12, 14. , voluntary standards violate terms WTO’ Technical Barriers Trade (TBT) agreement, stipulates standards contribute supporting environmental safety objectives long technical regulations, standards, testing certification schemes adopted governments create disguised unnecessary barriers trade. TBT agreement requires signatories comply Code Good Practices Preparation, Adoption Application Standards ensure national standards nontariff trade barriers. TBT, technical regulations defined mandatory requirements products related process production methods, standards -mandatory guidelines recognized body. technical regulations standards refer products , terminology, symbols, packaging, marketing labelling requirements. International trade rules state trade restrictions designed protect species ecosystems permissible, violate General Agreement Tariffs Trade (GATT) fall relevant exceptions.93 6.1 Standards International Standards Organization (ISO) defines standards documented agreements technical specifications precise criteria consistently rules, guidance, definitions ensure materials, products, processes services fit intended purposes.94 Standards pertain products methods assessing products, codes practices, management systems, practices. management system standard describes business manages production process, quality-assurance purposes address specific concerns food safety, environmental stewardship, sustainability, security information systems. Standards perform functions. facilitate transactions providing harmonized comparable information goods services marketplace facilitating interoperability comparability products systems. important vehicle diffusion practices improved technologies, provide important political guidance preferable products processes. mandatory voluntary standards effective tools ensuring sustainability. Mandatory standards countries establish rules mechanisms ensure food safety prevent spread disease animal plants, including marine species. measures apply domestically produced products imports. TBT agreement, mandatory standards applied imports act restrictions trade. WTO’ Agreement Sanitary Phytosanitary Measures sets basic rules food security plant animal health standards. countries set standards, long based scientific principles maintained sufficient scientific evidence. standards applied extent protect human, animal plant life health unjustifiably discriminating countries similar conditions prevail. Voluntary standards voluntary standards created industrialized countries designed address consumer concerns environmental social impact goods services. Voluntary standards tools differentiating retailers products increasingly competitive global market. Voluntary standards provide consumers information promote conscientious purchasing decisions, ensuring product food safety. market-based, tend favour cost-effective solution enhance harmonization, interoperability, transparency traceability chain. Voluntary standards promote investment sustainable practices, evidenced corporate commitments procure standard-compliant supplies. 29HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY governments implement policy objectives aid financial institutions managing risk. Voluntary standards originally developed national basis, increasingly regional international. Significant differences voluntary-standards regimes confusion producers consumers, undermining objectives. , proliferation national, regional international standards market fragmentation increase costs promoting harmonization convergence. Export- oriented producers split chains introduce products comply voluntary standards leverage economies scale. noncompliance voluntary standards necessarily restrict production exports, complying standards labelling facilitate access coveted consumer segments distribution chains. 6.2 Labelling Labelling products services communicate important information consumers. types labelling mandatory— , governments require food items bear nutrition information packaging— labelling voluntary designed convey product’ quality desirability. Labels describe environmental impact, ethical production standards, equitable distribution revenues product businesses appeal consumers characteristics. “ecolabel” voluntary label declaration information environmental impact product service order influence inform purchasing decisions. Ecolabels form statement, symbol, graphic products, packaging, advertising. Ecolabels signify product environmentally friendly similar products.95 ecolabels relate specific environmental ecological objectives, convey information economic social goals. , “fair trade” labels environmental responsibility economic equity. ecolabeling schemes contribute maintaining productivity economic marine resources providing incentives sustainably manage marine biodiversity, play key role Blue BioTrade. categories voluntary ecolabeling schemes.96 -declaration labelling, individual companies labels describe -imposed environmental standards. category labelling developed industry associations, define specific criteria products member firms verify compliance internal procedures external certification. category labelling private organizations, license labels producers, external certification company verifies compliance. tool environmental management, ecolabeling subject ISO 14000 Series. series prescribe environmental performance levels. , standards firms required establish environmental policies set targets objectives environmental management. ISO 14000 Series identifies types ecolabel differentiated information level. Type multi- attribute label developed external party. amount detail attribute values, information conveys condensed -dimensional scoring algorithm. Type II -proclaimed, single-attribute environmental declaration. Type III detailed information, encompasses attributes, awarded based full life-cycle assessment.97 addition, ISO 14020 Series credible set international benchmarks firms prepare environmental labelling. ISO 14021 attempts harmonize -declared claims. prohibits vague claims imply unspecified environmental benefit, “environmentally friendly,” “green,” “nature friendly,” “sustainable.” disallowed definition sustainability , minimum thresholds economic, social, environmental performance universally define sustainable production established. ISO 26000 “Guidance social responsibility” reinforces position barring -declared claims sustainability. ISO 14024 requirements operating valid ecolabeling scheme adopted Global Ecolabelling Network (GEN) benchmark. GEN network ecolabeling organizations 60 countries. focuses exchange information national ecolabel organizations issue Type 1 ecolabels defined ISO 14024. 30 BLUE BIOTRADE: Voluntary ecolabeling schemes proliferated decades, estimated 465 labelling schemes operate 199 countries 25 industries.98 , 147 include standards food beverages.99 European Union Commission identified 129 public private sustainability- related food information schemes European Union.100 schemes designed improve transparency food chain promote sustainable production consumption, offer weak unsubstantiated claims amount -declaration individual firms. , wide array ecolabels similar forms labelling give consumers meaningful guidance choosing environmentally responsible ethically sourced products. ecolabels proclaim labelled products promote sustainability, scheme reflects starting point defining sustainability. Similarly, ecolabels frequently claims worst practices avoided, constitutes worst practices defined differently environmental organizations companies adopted label. International Social Environmental Accreditation Labelling (ISEAL) Alliance attempted reconcile differences ecolabeling standards. ISEAL global membership association private organizations sustainability-related goals objectives. Members adhere ISEAL Code Good Practices. Similarly, FAO developed Guidelines Ecolabelling Fish Fishery Products101 Technical Guidelines Aquaculture Certification102 establish basic consistency voluntary standards major international agreements providing minimum set substantive criteria operating credible ecolabeling schemes.103 ecolabels focus environmental issues include social standards. , Union Ethical BioTrade (UEBT) labels address biodiversity considerations social aspects (Box 9).104 Social Accountability International Initiative established SA 8000 organizations demonstrate social responsibility supply chain. standard designed reflect ethical working conditions, adherence national labour laws respect Universal Declaration Human Rights, ILO conventions, international agreements. labelling organizations lack capacity - encompassing deliberately focus specific areas. organizations conduct impact reports— , ISEAL compliant— aspects sustainability addressed. proliferation numerous, unreliable systems ecolabelling eroding consumer confidence, firms difficulty selecting ecolabel effectively conveys commitment ethical sourcing.105 Worldwide ISO surveys shown ecolabels scientifically inaccurate / difficult understand.106 lack consistent standards ecological sustainability, social responsibility economic equity tendency ecolabels present misleading information undermine core function correcting market information asymmetry. critical shortcomings Box 9: Union Ethical BioTrade Ethical BioTrade Standard Union Ethical BioTrade (UEBT) spin organization UNCTAD’ BioTrade Intiative, promotes “Sourcing Respect” inputs derived biodiversity. UEBT membership- based -profit association launched 2007. created principles Ethical BioTrade Standard, members guide practices sourcing natural inputs manner consistent sustainable business growth, local development, biodiversity conservation. standard applies goods, wild cultivated, cover services. based BioTrade principles listed , (2012) Union Ethical BioTrade Standard focuses terrestrial resources ecosystems, necessarily reflect unique characteristics marine coastal resources ecosystems. Olivia (2011). Sharing benefits biodiversity: international protocol implications research development. Source: Union Ethical BioTrade, http://ethicalbiotrade.org/--union/. 31HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY addressed defining universal Blue BioTrade principles criteria serve basis accurate comprehensive ecolabeling. Ecolabel certification Ecolabel certification process party written assurance product, process, service conforms set defined standards. Certification helps ensure ecolabels accurately convey information consumers, certification process costly justified price premiums ecolabelled products.107 European Union, cost ecolabel application fee ranges €200 €1,200, annual fees high €1,500.108 Netherlands, cost ecolabel certification includes -time certification fee US$800 annual fee US$600 US$39,000.109 China, total fee obtaining ecolabel certification ranges US$1,800 US$6,000.110 firms developing countries lack certification bodies, costs increase significantly. number voluntary eco-labelling schemes specifically seafood products increased significantly years.111 Examples include Marine Stewardship Council (MSC), Aquaculture Stewardship Council, Friends Sea, Friends Fish, Wild Generic Sustainability Standards, Global Aquaculture Alliance, GLOBAL .. Aquaculture, Naturland Sustainable Capture Fishery, Fair Trade Small Farms Facilities, International Federation Organic Agriculture Movements (IFOAM). scope marine fishery labels broad, ranging guarantee safety wild species address fishing, bycatch, destructive fishing practices, IUU fishing, discards, ghost fishing, ecosystem deterioration, damage food chain. Global Sustainable Seafood Initiative (GSSI)112 attempted standardise criteria certification schemes based. consumer market drives demand marine ecolabeling certification, voluntary ecolabeling schemes certified seafood contravene multilateral trade rules, voluntary standards create barriers trade -developed countries small producers. MSC established Unilever WWF 1997. defines principles, criteria, processes -party certification fisheries. MSC standards based core principles: () fishing practices sustainable targeted fish population avoid overexploitation; (ii) fishing practices maintain structure, productivity, functions, diversity ecosystem fishery depends; (iii) fishery management meet local, national, international regulations, data-collection system place monitor respond changing circumstances maintain sustainability. principles 31 performance indicators, activities assessed certification. MSC compliant FAO Guidelines Eco-labelling Fish Fishery Products Marine Capture Fisheries consistent ISEAL Alliance Code Good Practices Standard Setting Impact Monitoring. MSC establishes Chain Custody Standard Traceability. seafood sold MSC ecolabel, activity chain assessed certified independent body ensure conforms MSC Chain Custody Standard. MSC-certified products originate large- scale marine fisheries, including salmon, prime white fish pollock, spiny lobster. developing countries account 70% total marine capture fishing, countries contribute 3% total MSC-certified tonnage. Germany, Netherlands, United States, United Kingdom, Sweden, Switzerland supply -thirds MSC-certified products. MSC making effort expand focus fisheries developing countries emerging economies, areas facing acute threats biodiversity.113 , cost MSC certification high small scale artisanal fisheries bear. costs certification vary greatly depending certification scheme, size complexity fishery, time involved certification process. availability reliable scientific data affect certification. costs certification process paid independent -party certification body, main cost components fishery pre-assessment, assessment, - assessment, , case MSC certification, chain--custody assessment. additional license fee label logo paid labelling organization. Certification independent accredited contractor costs US$15,000 US$120,000.114 certification, fisheries undergo annual auditing, costs US$75,000 audit, 32 BLUE BIOTRADE: fishery -certified years.115 total assessment costs MSC certification range US$10,000 small, simple fishery US$250,000 large, complex fishery.116 , Alaska pollock fishery years fully certified total cost US$500,000. MSC standards overlap BioTrade principles, aspects Blue BioTrade covered MSC standard vice versa. MSC standard focuses minimizing environmental impact, demand management process guarantees ecosystem sustainability. , key sustainability indicator MSY targeted stock. , MSC standard bearing socioeconomic sustainability benefit sharing. MSC process largely designed industrial fishing address tenure issues importance smaller community artisanal fisheries. Finally, MSC, eco- labels, holistic approach ecosystem management, apply level chain. seafood certification scheme GSSI Global Benchmark Tool (GSSI GBT), grounded FAO Guidelines Eco-labelling Fish Fishery Products, FAO Code Conduct Responsible Fisheries, FAO Technical Guidelines Aquaculture Certifications. GSSI GBT ISO normative standards complies ISEAL codes. GSSI GBT components: () seafood certification scheme governance; (ii) seafood certification scheme operational management; (iii) aquaculture certification standards; (iv) fisheries certification standards.117 Friends Sea organization certifies wild farmed fish products. main criteria : () avoiding overexploitation target stocks; (ii) limiting discards maximum 8%; (iii) avoiding bycatch endangered species; (iv) avoiding adverse impacts seabed; () ensuring compliance IUU, Total Allowable Catch (TAC), regulations. Friends Sea claim cover 10% global wild- capture fisheries, 80% certified products Peruvian anchovy fisheries. annual fee Friends Sea logo US$4,200. seafood labels resource-based processed-oriented. scoring criteria address status resource (.. current level stocks) characteristics fisheries (.. type fishing gear ), seafood labels rarely evaluate effectiveness national fishery-management systems. , presence labelling schemes necessarily imply sustainable practices national level.118 Certifications increasingly popular aquaculture, reflecting shift focus consumer demand sustainability. decades, major concern maintenance wild fish stock levels, certification largely focused capture fish , salmon, anchoveta, tuna. 80% certified seafood wild catch, amount certified seafood aquaculture growing rate 76% year. common aquaculture certification schemes operated Aquaculture Stewardship Council, Global Aquaculture Alliance (GAA), Naturland Sustainable Capture Fishery, IFOAM. GAA promotes aquaculture sustainable means increase seafood supply, assumption controversial. GAA created Aquaculture Practices certification standard, defines main elements responsible aquaculture. Existing aquaculture certification schemes enhanced application Blue BioTrade principles aquaculture. 2015, certified seafood production increased 23 million metric tons, 14% global seafood production,119 estimated retail US$11.5 billion.120 , certification remains limited segments producer market, fisheries developed countries substantial management capacity, high-profile, high- species represent 20% global marine fishery production. seafood labels tailored specific supply chains regions, consumer markets developed countries, certification developing countries largely restricted easily certifiable fisheries. rapid increase number private certified schemes 15 years raised applications costs increased confusion seafood chain.121 response problem, governments created public certified schemes Iceland’ Responsible Fisheries Japan’ Marine Eco-label. Mislabelling fraudulent labelling certification growing problem. , estimated 20%122 48%123 certified seafood products mislabelled. United States Food Drug Administration reported 2011-13, estimated 15% wholesale seafood products mislabelled.124 33HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY sources report 2015 2016, 82% grouper, perch swordfish tested Italy, 50% sole tested Germany, 98% bluefin tuna tested Belgium, 63% pacific red snapper tested California mislabelled125. certified seafood labelling schemes immune errors fraud, substantial amount MSC-certified Chilean seabass mislabelled.126 fisheries standards focus environmental management social-responsibility issues -discrimination, human rights, workers’ health safety. issues easily monitored wild-capture operations due challenges observing conditions verifying compliance aboard fishing vessels. , aquaculture standards Naturland, IFOAM GAA effectively address social issues.127 UNCTAD BioTrade initiative working International Trade Centre (ITC) include BioTrade Standards Map identify standards support economic, social environmental objectives BioTrade. Blue BioTrade provide holistic alternative existing standards ecolabeling schemes, environmental, social, economic principles span chain encompass ecosystem- services adaptive-management approaches. Traceability Increasing media coverage environmental social, legal, economic issues seafood production intensified incentives ensure producers adhere mandatory regulations voluntary standards. , complexity identifying ocean-based product’ origin, attributes, safety, progress supply chain poses persistent challenge. , food safety primary focus industry traceability, decade traceability important issue affecting credibility entire supply chain. Codex Alimentarius defines traceability “ ability follow movement food stages production, processing distribution.” European Union Regulation 178/2002 defines traceability ability trace follow food, feed, food-producing animals, ingredients stages production, processing distribution. generic definition traceability “ ability access information relating consideration, entire life cycle, means recorded identifications.”128 Traceability complex issue requiring proper documentation recordkeeping observation proper handling protocols processing, shipping, distribution, sales ensure product accurately tracked source destination. Traceability included import regulations major seafood importers core component voluntary ecolabeling schemes. Traceability important component Blue BioTrade, key implications quality safety food -food products sourced coastal marine environments. Traceabilty relevant consumers, strenghtens brand confidence reinforces integrity labelling certification schemes, relevant business owners, traceability contributes risk mitigation reduces liability costs. Adopting -chain approach traceability firms identify areas productivity gains managerial improvements, enhancing efficiency chain, reducing errors, strengthening monitoring control fish stocks. Traceability essential comply national international regulations standards, including voluntary certification, increases transparency promotes corporate integrity. reasons, traceability key element Blue BioTrade principles criteria. Tourism standards labels Sustainability important issues facing global tourism industry. Tourism depends maintaining high-quality natural manmade environments, ecological degradation socioeconomic inequity pose direct reputational risks. Sustainable tourism requires active participation local communties stakeholdrs, equitable benefit sharing. Shared benefits tourism include economic returns improvements quality life investment infrastructure social services. maintaining consistent level service quality ensuring minimum degree ethical integrity, sustainable tourism enhance visitors’ experience. labelling certification schemes , establishing set standards responsible tourism leverage domestic international demand sustainable practices, promoting competion industry. Global Code Ethics Tourism, adopted 1999 General Assembly UNWTO, establishes 34 BLUE BIOTRADE: basic principles setting responsible tourism standards. Global Code Ethics Tourism voluntary mechanism designed guide decisions private stakeholders. Similarly, 2005 Principles Implementation Sustainable Tourism, developed UNEP, nonbinding framework creating sustainable tourism standards.129 fisheries aquaculture, tourism industry embraced ecolabeling. Tourism industry ecolabels address ecological footprint tourism infrastructure, environmental impact tourism operations, cases reflect industry’ consistency carrying capacities sensitive ecosystems. , Green Globe ecolabel scheme assesses sustainability travel tourism businesses supply- chain partners. Green Globe Standard includes 44 core criteria 380 compliance indicators, compliance verified year. Dozens international national certification schemes labels applied tourism operators destinations,130 demonstrates common set criteria, proliferation voluntary standards certification programs dilute impact sustainability. tourism standards set requirements accommodations, apply tour operators service providers, rarely focus ecosystem mangement biodiversity conservation. , approximately 40 standards devised ISO Committee Tourism Related Services (TC228), impose ecosystem management biodiversity conservation standards accommodations, harbour services (, .., ISO/AWI21406), training scuba divers service providers. reference natural environment ISO 18065:2015 standard, establishes requirements tourist services Natural Protected Areas Authority (NPAA).131 standard apply private operators. widely tourism ecolabels “Blue Flag” beaches. Blue Flag began tool enforce European Bathing Water Directive, adopted 3,200 beaches Europe, Canada, Caribbean, Zealand, South Africa. National authorities Croatia, Tunisia, Estonia, Sweden, United Kingdom apply tourism standards labels forms marketing. , government Ecuador applies “Calidad Galapagos” standard support sustainable tourism Galapagos Islands.132 , fisheries labelling, worldwide surveys shown tourism ecolabels scientifically inaccurate difficult understand, underscoring importance developing common principles criteria sustainable coastal marine tourism.133 Responsible tourism standards attempt build local capacity manage sensitive ecosystems reduce manmade pressures natural resources. 35HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY 7. CONCLUSIONS AND RECOMMENDATIONS 7.1 future ocean economy vastness world’ oceans limitless source commodities, food, minerals, energy, ecosystem services, genetic resources, materials, inexhaustible meduim transportation, recreation, cultural activities. challenges monitoring ocean , combined common- pool nature marine coastal resources, contributed unsustainable overexploitation. pressure oceanic resources compounded growing population, expanding range marine- based economic activities, increased pollution levels, complex impacts climate change. adoption implementation UNCLOS represents major step properly defining ocean economy measuring contribution global prosperity. current lack internationally accepted definitions, classifications, terminology created multiple conflicting perspectives conclusions scope importance coastal marine-based sectors. links biodiversity, ecosystem services, economic output vary sectors global regions chains. Accurately understanding ocean-based biological resources equally vital environmental conservation, social equity, economic efficiency. Official statistics national accounting data rarely capture benefits marine ecosystems provide wellbeing local communities, firms consumers tend underestimate biodiversity ecosystem services, external market transactions. Protecting biodiversity sustaining ecosystem services falls purview public sector lacks capacity, understanding, political safeguard critical forms natural capital. Explicitly accounting benefits human welfare healthy ecosystems step developing effective strategies protect integrity growth potential ocean economy.134. step design adopt principles criteria guide existing emerging sectors sustainability. report designed provide analytical foundation developing principles criteria rubric Blue BioTrade. UNCTAD positioned lead process creating shared concept Blue BioTrade implementing standards priority chains maximize benefits trade ocean-based economic sectors. 7.2 role Blue BioTrade report presented proposed definition, scope, set principles criteria Blue BioTrade. Blue BioTrade defined ecologically sustainable economically equitable , trade , coastal marine biodiversity, including species, genetic resources, ecosystems. category restricted living organisms products living organisms, excludes exploitation minerals inorganic resources. report identifies priority Blue BioTrade sectors: () fisheries aquaculture, (ii) bioprospecting natural marine compounds, (iii) coastal marine- based tourism, (iv) investments carbon capture sequestration. Blue BioTrade innovative tool achieving sustainability, implementation contribute achievement United Nations SDGs 2, 12, 14. UNCTAD capacity spearhead discussion, testing, revision Blue BioTrade principles criteria collaboration institutional partners stakeholders. Adapting traditional BioTrade principles criteria ocean economy contribute greater understanding sustainable coastal marine biodiversity, expansion equitable access rights benefit-sharing principles marine environment, compliance national international regulatory frameworks, voluntary standards, traceability requirements. context, Blue BioTrade play critical role ensuring sustainable marine coastal resources. Blue BioTrade principles criteria account : () complex ecological dynamics coastal marine ecosystems, including permeability interdependence prevalence migratory species; (ii) inherent international collaboration sustainably manage ocean economy; (iii) differences institutional capacity, regulatory frameworks, political economy coastal nations. , Blue BioTrade 36 BLUE BIOTRADE: adaptive implemented precautionary approach, tools methodologies tailored situation. Due complexity marine ecosystems, traditional concept MSY individual species -examined perspective ecosystem . understood, concept MSY fully consistent maximizing ecosystem benefits -chain approach. sectors consume biological resources, tourism marine bioprospecting, impact assessments conducted estimate ecosystem effects trade-offs. UNCTAD CAF equipped support development methodology backed sound scientific evidence assist firms implementing Blue BioTrade principles criteria. UNCTAD CAF aid governments designing supportive policies targeted economic incentives facilitate adoption Blue BioTrade. Coordinated action levels government promote community-based management sustainable businesses practices. Enabling coastal marine communities select Blue BioTrade lead role implementation strengthen local ownership. UNCTAD, CAF, national, regional, international partners provide programmatic support country, -chain, sector levels, monitoring evaluating Blue BioTrade sharing lessons learned. 7.3 steps Blue BioTrade proposed definition scope Blue BioTrade draft principles criteria presented Annex discussed piloted guidance UNCTAD CAF. UNCTAD CAF work close collaboration key stakeholders, including CBD CITES secretariats, international, regional, national organizations, governments, firms, industry associations, academic institutions, development agencies, civil society groups (.. International Oceans Institute) design implement Blue BioTrade. CAF regional financial institutions provide project financing guidance practices marine coastal businesses. development Blue BioTrade timely, UNCTAD partners launching worldwide revision process update 2007 BioTrade Principles Criteria based lessons learned 10 years. Completing definition Blue BioTrade principles criteria facilitating widespread adoption require: () consultations partners key experts draft Blue BioTrade principles criteria presented Annex ; (ii) piloting Blue BioTrade principles criteria range real-world contexts; (iii) expanding existing BioTrade network include organisations acting coastal marine environment; (iv) revising updating Blue BioTrade principles criteria based stakeholder input; () developing tools methodologies ensure Blue BioTrade principles criteria based sound scientific data input private sector; (vi) providing programmatic support, country level segments chain, reflects unique features coastal marine ecosystems, economic dynamics ocean-based sectors, maritime regulatory framework. Establishing consensus constitutes Blue BioTrade developing guidance producers consumers greatly enhance environmental economic sustainability ocean economy. 37HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY ANNEX. DRAFT BLUE BIOTRADE PRINCIPLES AND CRITERIA Blue BioTrade principles criteria apply living coastal marine resources ecosystems, including genetic resources, plants, animals, organisms products derived therefrom. purpose promote sustainable , trade , coastal marine resources. Blue BioTrade focuses , restricted , () fisheries aquaculture; (ii) bioprospecting natural marine compounds; (iii) coastal marine tourism; (iv) carbon capture sequestration. draft principles criteria intended generate discussion stakeholders public, private, -profit sectors.135 principles criteria listed prepared team experts vetted peer-review process. considered Blue BioTrade, activities related coastal marine resource harvesting/catching, processing, transportation, commercialization, delivery coastal marine resource- based services, comply minimum set eligibility requirements. Blue BioTrade: Minimum Eligibility Requirements • activity focuses material derived coastal marine biodiversity (.. living coastal marine species). • activity include extraction minerals, sands, metals, oil gas, generation energy; • activity seek develop genetically modified organisms; • activity foster invasive species; • activity harvest/catch, , disrupt, threaten endangered species, including covered CITES Appendix national regional endangered-species lists; • activity contribute degradation transformation marine coastal ecosystems, draining wetlands deforestation coastal areas; • activity incorporate support form illegal, unreported, unregulated (IUU) fishing illegal activity;136 • activity apply precautionary approach, defined Rio Principles United Nations Fish Stocks Agreement (1995), inter alia137. Principle 1. Conservation coastal marine biodiversity line SDG 14, objective CBD, Aichi targets related marine resources ecosystems UNCLOS multilateral trade frameworks, Blue BioTrade maintain coastal marine biodiversity genetic, species, ecosystem levels. Criterion 1.1. characteristics coastal marine ecosystems natural habitats managed species maintained. Blue BioTrade activities ensure capacity ecosystems provide services maintained sustainable level avoid degradation, fragmentation, erosion. important case marine ecosystems, highly interdependent permeable. Criterion 1.2. Genetic variability coastal marine species, including plants, animals, micro-organisms, restored, maintained increased. Criterion 1.3. Ecological processes conserved. Ecosystem interactions, functions, biological chemical cycles affect productivity coastal marine species supply ecosystem services. Blue BioTrade activities adversely affect water quality, oxygen level, acidity, conditions sustain balanced ecosystem marine life. Criterion 1.4. Conservation activities planned implemented accordance management plans conservations measures. Blue BioTrade activities adopt precautionary adaptive-management approaches scientific evidence marine resource assessments, conservation planning tools. Conservation activities coordinated effort relevant national, regional international authorities stakeholders. Criterion 1.5. Conservation activities compiled, information disseminated stakeholders increase knowledge coastal marine biodiversity conservation. BioTrade organizations contribute 38 BLUE BIOTRADE: development transfer knowledge, management practices tools developed. Principle 2. Sustainable coastal marine biodiversity line SDG 14, objective CBD, relevant Aichi targets Post-Aichi Global Biodiversity Targets, Blue BioTrade sustainably coastal marine biodiversity significant adverse impacts vulnerable species ecosystems. , wild-capture fishing, controlled aquaculture, sampling genetic resources, tourism development, minimise impact marine life interfere delivery ecosystem services. Criterion 2.1. coastal marine resources ecosystems planned managed ensure long-term health, productivity, sustainability. coastal marine resources ecosystems exceed maximum sustainable yield regenerative capacity. Deleterious practices overfishing avoided, incident catch, discards minimized. extraction coral, sponges sedentary species accordance practices strict compliance national, regional, international regulations. Blue BioTrade organizations implement adaptive, ecosystem-based approaches planning, stocks management, monitoring evaluation, grounded scientific empirical analysis. Criterion 2.2. actors chains comply applicable technical phytosanitary (.. health, safety, environmental) measures standards products services derived marine coastal resources. Criterion 2.3. Aquaculture operations contribute sustainable coastal marine resources , , support regeneration damaged polluted ecosystems. Blue BioTrade aquaculture avoid excessive harmful antibiotics, fungicides, chemical inputs. minimize waste, promote recycling, mitigate potential negative environmental externalities species, water quality, promote healthy coastal marine ecosystems. Criterion 2.4. ecosystem services hinder continuous generation services damage regenerative capacity. Tourism -consumptive coastal marine resources carefully manage human interactions wildlife avoid disturbing species ecosystems. Principle 3. Fair equitable sharing benefits derived coastal marine biodiversity line Articles 1 15 CBD Nagoya Protocol Access Benefit Sharing, Blue BioTrade ensure participants chain adequately compensated access biological resources unduly restricted. Benefit-sharing principles apply benefits derived marketing genetic resources biochemical compositions. apply biological resources, biochemical compounds, subsequent applications depending national regulations. Criterion 3.1. Actors entire chain communicate interact . Open communication enables actors assess add, contributes informed balanced negotiations. Criterion 3.2. added, income generated levels chain. income generated distributed transparent equal conditions, based real cost calculations, reflecting added actor. Criterion 3.3. Information potential target markets actors chain. Access information essential identify market opportunities secure benefit sharing. Criterion 3.4 & genetic resources, biochemical compositions subsequent applications national jurisdictions commercial exploitation based prior informed consent mutually agreed terms. activity consistent national regulations obligations CBD Nagoya Protocol. & activities involving coastal marine biodiversity 39HARNESSING MARINE TRADE TO SUPPORT ECOLOGICAL SUSTAINABILITY AND ECONOMIC EQUITY consistent UNCLOS obligations conservation scientific research, subsequent conventions ( Areas National Jurisdiction). Blue BioTrade facilitate coastal marine research technology transfer line Nagoya Protocol national access benefit-sharing legislation. Principle 4. Socioeconomic sustainability Blue BioTrade activities economically sustainable competitive long term foster engagement participation chain actors. reliant public subsidies assistance -profits, generate return consistent market demand standards. Criterion 4.1. Organisations demonstrate sound management capacity. Blue BioTrade organisations employ coordination mechanisms implement strategies designed ensure long-term financial economic sustainability. organization set measurable goals targets regularly monitored. Criterion 4.2. Potential markets identified, competitive advantages consolidated. Blue BioTrade products services target specific consumer segments -developed marketing export plan. specific product service (market creation) terms trade tools, information, strategic partnerships advertising considered. BioTrade activities involve support access markets produce generated small scale artisanal collectors, harvesters fish folks. Criterion 4.3. Organisations financially profitable solvent long term. Blue BioTrade activities economically competitive require indefinite financial support governments -profits. Criterion 4.4. Organisations contribute local employment support sustainable improvements quality life local communities. Blue BioTrade organizations generate income promote welfare local communities supporting livelihoods, food security, gender equality, health safety. Criterion 4.5. Negative impacts local productive cultural practices prevented minimized. development commercial linkages markets disrupt customs community upset equilibrium local market. Blue BioTrade organizations acknowledge responsibility adverse disruptive impacts local communities action mitigate . Principle 5. Compliance national international regulations Compliance relevant legislation regulations fundamental legitimacy organization access markets. international framework ocean governance includes binding multilateral regional conventions agreements - binding codes conduct guidelines, national local regulations. aspect Blue BioTrade contravene rules, Blue BioTrade indirectly support, facilitate, encourage form illegal activity. Criterion 5.1. activities exercise due diligence comply national local legislation related sustainable capture, harvesting, , trade , goods services derived coastal marine biodiversity. Blue BioTrade organizations respect national local laws ordinances pertaining fishing, aquaculture, bioprospecting, tourism, carbon capture, relevant sectors. Blue BioTrade organizations respect authority national local government’ marine coastal spatial planning. Criterion 5.2. activities exercise due diligence comply international regional regulations related sustainable capture, harvesting, , trade , goods services derived coastal marine biodiversity. Applicable regulations include, restricted , UNCLOS, United Nations Fish Stocks Agreement, CBD Nagoya Protocol, CITES, Ramsar Bonn Conventions, relevant treaties nonbinding guidelines issued FAO, WTO UNCTAD Agreements, conventions standards ILO. , BioTrade activities conform regulations adopted relevant RFMOs regional bodies. 40 BLUE BIOTRADE: Principle 6. Respect rights actors involved Blue BioTrade generation social capital pillars sustainable development BioTrade activities. Respect rights actors interact organization fundamental. Criterion 6.1 Human rights gender equality respected. Human rights fundamental work involved sustainable trade biodiversity products services. Similarly, gender equality respected mainstreamed BioTrade activities. issues duly recognized respected. Criterion 6.2 Intellectual property rights traditional knowledge respected legal status. Blue BioTrade organisations disclose origin, source legal provenance genetic/biological resources prior-art knowledge making patent breeders’ rights applications. Access traditional knowledge granted prior informed consent granted. Traditional knowledge regarded sui generic form intellectual property, national laws define , compensation traditional knowledge reflect . Criterion 6.3. Organisations provide adequate working conditions line national labour laws international conventions workers’ rights job safety. Blue BioTrade organisations minimise risk inherent professions linked capture harvesting marine resources respect authority States labour rights vessels state flag. Principle 7. Clarity tenure rights, access coastal marine resources coastal marine resources takes place great diversity locally defined, informal, exclusive communal closed tenure arrangements, frequently labeled sea tenure customary marine tenure. 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FAO Rome. http://www.fao.org/3/-y1224e.pdf; Accessed 31 2018. 15 Article 6.1 2 United Nations Fish Stocks Agreement “ States apply precautionary approach widely conservation, management exploitation straddling fish stocks highly migratory fish stocks order protect living marine resources preserve marine environment (…). absence adequate scientific information reason postponing failing conservation management measures. United Nations (1995). 16 FAO (2014) State world fisheries aquaculture. 17 https://oceanconference..org/. 18 Behnam (2014). Tracing Blue Economy. 19 UNCTAD (2014). Oceans Economy: Opportunities Challenges Small Island Developing States: .2. 20 Agardy Alder (2005). Coastal Systems. Millennium Ecosystem Assessment. 21 UNDESA World Bank (2017). 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