High-level Forum on Multi-Stakeholder Partnerships 2024 - Thematic session
Unlocking the blue economy for sustainable growth: Creating value and promoting investment to improve productivity
Excellencies, ladies and gentlemen,
We may live on land, but our lives critically depend on the ocean.
Healthy oceans are vital to the livelihoods of more than 3 billion people—about 40% of the global population.
The ocean offers vast economic opportunities, from fisheries, aquaculture and shipping to coastal tourism and marine biotechnology.
The ocean economy is worth around 3 to 6 trillion US dollars.
However, if marine resources and ecosystem services are also included (a more environmental estimation), the value of ocean assets is estimated at a staggering 24 trillion US dollars, nearly equivalent to the GDP of the United States—the world's largest economy.
In terms of trade, the value of ocean goods and services exports reached almost US$ 2 trillion in 2022. Notably, developing economies accounted for 43% of global ocean trade, a share higher than their participation in global trade overall. Developing countries play a particularly strong role in exports of fisheries, aquaculture, and coastal and marine tourism.
Global trade, as we know it today, would not be possible without the oceans. Over 80% of global trade by volume is carried by sea.
In the shipping industry, it is often said that without shipping, half of the world would starve while the other half would freeze.
But the ocean is far more than just an economic asset. It is indispensable for a healthy planet and our fight against climate change. Ocean ecosystems protect coastal areas from sea-level rise and are crucial in regulating the climate, absorbing around 90% of the excess heat generated by climate change.
Yet, the ocean economy is under tremendous pressure.
Climate change, marine pollution, and the over-exploitation of marine resources pose significant threats to the sustainability of the ocean economy. Tons of plastics are polluting marine ecosystems. These issues not only diminish the value of ocean assets but also hinder prospects for future growth.
The Blue Economy significantly contributes to CO2 emissions, with maritime transport alone accounting for about 3% of global emissions, fisheries for 0.5%, aquaculture for 0.5%, and coastal tourism for about 4%.
Moreover, maritime transport faces new challenges as environmental and political shocks near major trade routes like the Panama, Suez, and Bosporus canals can disrupt global connectivity, trade, and supply chains.
The vulnerability of the ocean economy is felt most acutely in small island developing states.
Given these challenges and the critical need for healthy oceans, allow me to share six key points on how we can better harness the Blue Economy, especially from a trade perspective.
First: Maritime transport must become greener.
The shipping industry needs to adopt new technologies and switch to alternative, non-carbon fuels. While solutions already exist, such as bio-gas or green hydrogen, they are not yet fully mature. A fuel levy or carbon price to make alternative fuels competitive could be introduced. The low-carbon transition requires funding and support, especially for small economies to ensure that they remain connected to markets.
Second: Non-tariff measures should not become trade barriers.
Ocean-based goods face a high incidence of non-tariff measures (NTMs)—nearly all such products encounter at least one import NTM, with an average of 6.7 different measures per product. Developing countries often lack the skills and resources to comply with these stringent regulations.
Harmonizing standards and building capacity will be crucial in helping these nations meet international market requirements.
Leveraging the Global System of Trade Preferences (GSTP) could also help address NTMs within a South-South cooperation framework.
Third: Nationally Determined Contributions (NDCs) can play a vital role.
NDCs could be more effectively utilized to enhance ocean economic measures, including mitigation and adaptation. This effort should be supported with financial, technological, and capacity-building assistance for developing countries.
Additionally, integrating smart ocean economy measures into the NDCs of coastal and island states is essential.
Fourth: There are opportunities with significant growth potential.
For example, seaweed. Our host – Indonesia - became the world’s second-largest producer of seaweed in 2021, behind China, and the second-largest exporter, behind South Korea. This sector also offers potential for empowering women, who represent more than half of the labour force in seaweed production in many countries, including Indonesia.
Many developing countries are also home to many sustainable alternatives to plastics, such as bamboo, coconut husks and banana plants.
Fifth: Enhancing knowledge through better data is crucial.
There remains a significant gap in data on the ocean economy. Investing in ocean trade databases is essential to better understand the connections between trade, climate, and decarbonization policies.
Sixth: Increasing funding for the ocean economy is imperative.
Currently, the ocean economy receives just 1% of total Official Development Assistance (ODA), despite recent increases. SDG 14—Life Below Water—remains the least funded Sustainable Development Goal.
That is why in 2023, UN Trade and Development called for a Blue Deal to protect and invest in the vast opportunities our oceans offer, particularly for developing countries. The Blue Deal could support sustainable ocean resource use, protecting fish stocks and marine biodiversity, and driving investment into sectors like seaweed farming and plastic substitutes, to build more innovative and resilient economies.
There is also an opportunity to redirect over 20 billion US dollars in fisheries subsidies to support sustainable fisheries and combat illegal, unreported, and unregulated fishing, especially in developing countries.
Additionally, natural ocean assets that act as carbon sinks in developing countries could be leveraged to create new financial mechanisms, generating revenue through carbon credits in blue carbon markets while combating climate change.
Finally, establishing a UN Ocean Finance Fund as proposed by the Global Fund for Coral Reefs would be a valuable addition. This fund could support trade and ocean economy activities that are not eligible for funding from existing mechanisms like the Green Fund or the Global Environmental Facility. Such a fund could provide demand-driven support and technical cooperation.
Dear Friends,
Let us remember that the ocean is not merely a resource; it is the lifeblood of our planet, connecting us all and holding the key to a sustainable and prosperous future.
Thank you for your attention.
