We always feel a little uncomfortable when the economic value of oceans and seas is emphasized. For example, according to some estimations, the ‘blue economy’ would have an annual size of $2.5 trillion, making it the seventh largest economy in the world (comparable to the economy of France). Although we see financial returns as a crucial part of (the sustainability of) impact investing, we prefer to talk about the value of oceans and seas for the liveability of our planet.
The ocean covers 70% of the planet’s surface, holding 97% of all water and 80% of the world’s biodiversity. And 90% of excess heat is absorbed by the ocean, 50% of the oxygen on earth comes from the ocean. The oceans play a central role in both climate development and biodiversity conservation.
“We forget that the water cycle and the life cycle are one.” – Jacques Cousteau
The ocean is the main regulator of the climate in our planetary system. The ocean is the main sanctuary of biodiversity on earth. Yet, ocean health is deteriorating rapidly due to overexploitation, pollution and climate change. As a result coral reefs are dying, mangrove and seagrass species are threatened by extinction, fishermen catch less fish and increasingly fish caught contains plastic.
Fortunately, ocean action is becoming more prominent on the global agenda:
- 2021, COP 26. The Glasgow Pact highlights the need to preserve the integrity of the ocean and its role as a carbon sink.
- 2022, COP 15. The Kunming-Montreal Biodiversity Framework which sets a goal to protect and restore 30% of the ocean by 2030.
- 2023, High Seas Treaty. Enables the establishment of marine protected areas in international waters.
- 2022-2024, Plastics Treaty. Resolution to develop comprehensive approach for full lifecycle of plastic (production, design, disposal).
These developments help to guide investors and add to the business case of ocean preservation. Investors looking to protect marine biodiversity can focus on the three key threats to ocean health:
- Pollution
- Overexploitation
- Climate change
Opportunities include actively seeking out and investing in companies that prioritise marine conservation. Through investments it is possible to promote innovation, including opportunities to invest in technologies to reduce the environmental impact of marine-related industries (like sustainable aquacultures, plastic capture, pollution reduction, marine carbon capture).
“What we do to the ocean, we do to ourselves.” – Sylvia Earle
The number of investment funds and strategies that explicitly aim to have a positive impact on the marine environment is increasing. We see promising private market strategies focusing on regeneration of ocean biodiversity and scaling up marine innovation. And the blue bond market, although currently still a niche corner of the fixed income market, grew 10% year-on-year in 2024.
It is time to recognize the crucial role that oceans and seas play in the liveability of our planet for current and future generations. Fortunately, investors can increasingly contribute to positive developments in this area.
“If there is magic on this planet, it is contained in water.” – Loren Eiseley
