Most of us have heard of economy and circular economy, but the new word that is gaining attention is the blue economy. This relatively new term was introduced at the UN conference on sustainable development (UNSCD) in Rio de Janeiro in June 2012.
According to the OECD, the blue economy has an estimated value of $2.5 trillion; it is expected to double in size to $3 trillion by 2030. It also facilitates the transport of 80% of the world's traded goods. The blue economy creates livelihood by providing 30 million jobs globally through ocean-related economic activities and indirect employment.
Europe, Africa and North America have a vibrant and thriving blue economy with a GDP contribution of $100 billion and employment for over 2 million people. In their blue economy sectors, the European Union, Portugal, Nordic countries and Africa, along with countries like Kenya, Tunisia and Gambia, are also incorporating blue economy strategies. In Asia, India, China and Vietnam have significant blue economy initiatives.
Small island developing states (IDS) in the Pacific focus on blue economy due to their vulnerability to climate change. In the Middle East, countries like Saudi Arabia, the UAE, Oman and Egypt are investing heavily in blue economy projects as part of their economic diversification strategies.
The emerging concept of blue economy involves all economic activities related to the seas and oceans, like maritime shipping, fishing, aquaculture, desalination, undersea cables, seabed extractive industries, deep sea mining, marine genetic resources and biodiversity.
It has three unique dimensions: 1) ocean contribution to economies; 2) environmental and ecological sustainability; and 3) ocean growth opportunity for both advanced and emerging economies.
Oceans play a key role in regulating the earth's temperature by absorbing carbon dioxide, supporting biodiversity and generating livelihood. A key aspect of the blue economy is its focus on sustainability and environmental protection. The blue economy focuses on economic growth and the preservation of marine ecosystems.
It aligns with the United Nations Sustainable Development Goals, particularly SDG 14: "Life Below Water". It is estimated that the blue economy can deliver 21% of the greenhouse emission reduction required to meet the Paris agreement target of limiting average global temperatures by 1.5°C by 2050. The healthy oceans support sustainability goals like climate change mitigation, carbon capture and marine biodiversity.
Since the 19th century, sea surface temperatures have increased by 12%. This warming has sharply increased in frequency and intensity, resulting in marine heatwaves affecting 84% of the oceans.
This could have a devastating effect on the marine ecosystem and result in the loss of critical habitats.
For example, the largest coral bleaching event has started this October 2024; it has affected more than 3/4 of the world's reef area, stretching across 74 countries and territories. The bleaching is triggered by rising ocean temperatures.
The ocean has absorbed 90% of the heat caused by greenhouse gases. 2023 was also the ocean's warmest year on record. Rising temperatures are also driving changes in species distribution.
This alters the ecosystem and affects fisheries. Rising sea levels are creating many challenges; by 2050, 570 coastal cities are projected to have major challenges due to rising sea levels impacting 800 million people. Infrastructures like ports, harbours and processing facilities are at risk, requiring expensive adaptations.
Along with the backdrop of population increase, tourism, shipping, energy, fishing, climate change and rising sea temperatures, the sustainability of the world's ocean ecosystems is in peril. The blue economy beckons for collaboration across sectors and borders to achieve the preservation of the world's oceans.
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