What Does the Blue Economy Mean for Our Oceans?

Most of us have never heard of the ‘blue economy’ despite almost all of us contributing to it in some way. The term refers to the range of economic uses we have for our coastlines and the wider ocean, with large maritime industries including shipping, fishing, tourism, energy and now even deep-water mining. For decades, the economy and conservation have stood on opposing sides, with politicians struggling to fuel their countries’ development whilst protecting their local environment. All too often, economic growth has come out on top in these political battles but the modern idea of developing the blue economy hopes to see financial growth and environmental protection go hand in hand.

Awareness of the blue economy is growing fast, largely because the land-based resources we have relied on for centuries are rapidly dwindling and drying up. For many years, the ocean was considered vast and inaccessible, yet constantly evolving technology has allowed underwater environments to become within our grasp. The economic value of our ocean is estimated at $24 trillion, with that expected to grow enormously in the coming years as logistics companies, energy innovators and mining businesses start scouring the sea for new opportunities. This increased use of our oceans for monetary gain just sounds like a new chance for humans to over-exploit our oceans and upset their delicate balance, yet there is one key word in the definition of the blue economy which stands out: sustainable. A widely accepted definition of the blue economy is that it is ‘the sustainable use of the oceans’ resources for economic growth, improved livelihoods and jobs whilst preserving the health of the ocean ecosystem’. So right at the heart of this growing economy is the idea that the human population must live in harmony with the marine environment by taking what we need to develop societies around the world but leaving the ocean in a healthy state, allowing future generations to gain the resources they need.

With 71% of Earth’s surface being covered in water, it makes sense that we should take advantage of the blue space which surrounds us on all sides. In fact, the ocean is thought to be able to help us solve many of our pressing problems. The growth in the aquaculture industry can help eliminate food poverty by providing protein-rich meals to many in developing nations whilst the increase in fish farming can create more employment. These farms are normally located in nearshore waters allowing local people to be employed whilst they also create jobs on land as fish are processed and sold at markets. Meanwhile, the oceans’ abundant energy can help us satisfy our growing energy demand whilst limiting the amount of carbon we emit into the atmosphere. Our seas are constantly flowing, crashing and rolling with energy in the form of waves, tides and sea breezes. All this energy can be harvested to help power our homes, businesses and transport systems on land.

Over the last several decades, scientists have also exposed just how many other services we gain from the ocean which are less tangible and harder to put a price on. Many new medicines come from sea snails, sponges and seaweed whilst the ocean is essential for maintaining a stable climate and providing over half of the oxygen we breathe. There is also simply the aesthetic beauty of the ocean, the exciting creatures which lie beneath its waves and the plethora of recreational activities it provides us with. These qualities of the ocean cannot be bought or sold yet the blue economy tries to put a price on them. Many argue that reducing these values to a monetary figure is ignoring their true meaning to humans, with the cultural, aesthetic and spiritual aspects being unquantifiable. Yet others argue that placing an economic price on everything will help conserve our oceans much more effectively. Historically, we calculated the worth of a whale based on how much we could sell its blubber and meat for, yet today a whale is worth so much more when you take into account the tourism revenue that derives from whale watching, the scientific value which comes from studying these creatures and the simple value which comes from knowing they exist. Similarly, a shark which is caught by the fishing industry is worth little over $100, yet a single shark living in the diving hub of Palau is thought to have a lifetime value of $1.9 million when you take into account the scuba divers, tourists and scientists which come to the area to visit it, not to mention the important role sharks play in keeping the rest of the ecosystem in balance. Within politics, trade-offs are made daily as we decide what is worth saving and what can be sacrificed and most of these decisions are filled with economic values. By giving our oceans and all the services they provide us with a monetary figure, we can make it much easier to compare their worth with that of other alternatives, allowing us to weigh up for example, the overarching costs of forming a protected area or allowing offshore gas explorations to take place. Reducing our oceans to a number hopes to allow governments to make more informed and rational decisions which can halt the new marine industrial revolution which appears to be taking shape, reflecting the activities which took place on land 250 years ago triggering mass extinction.

The Baltic Sea is one area which is taking the idea of the blue economy very seriously. The Baltic Sea lies off Northern Europe and laps at the shores of nine countries including Russia, Sweden, Germany and Estonia. The area currently has several ocean-based industries such as short sea shipping which takes place between EU ports, fishing, offshore wind and tourism with an increasing number of cruises docking in the region. Currently these markets are fairly small but have a very rapid growth rate which is attracting attention from investors. Russia is looking to expand its shipping industry whilst Sweden, Denmark and Germany look to renewable energy to help them reach their sustainability targets while all the countries in the area hope to benefit from a predicted boom in tourism. Yet the Baltic Sea is in a poor condition and we are already squeezing as many resources as we can from its waters. To be more economically effective, these countries realise that they must protect and conserve these waters if they wish these new markets to grow. With polluted seas devoid of life, tourists will no longer line the pebble beaches or head out on expeditions in kayaks along the coastline. With overexploited fish stocks, vessels will struggle to catch enough fish to turn a profit whilst restaurants will struggle to offer a local seafood menu. Whilst offshore wind farms can continue no matter the state of the sea, the companies behind them will have reputations which lie in tatters if they are regarded as the cause of environmental destruction. So it seems the solution to growing their economies lies in simultaneously protecting their natural landscapes. The area has already implemented lots of positive legislation regarding the ocean and have employed ecosystem-based decision making tactics which see them consider all the interactions and all the key groups which use the space, from governments to fishermen, wild species to communities. They have also outlined their definition of sustainable which involves creating zero waste and zero emissions which will help the countries monitor progress towards achieving their goals.

The Mediterranean is also experiencing what is nicknamed ‘The Blue Gold Rush’ as trade between Europe and Asia rapidly increases whilst the growth of the middle class across the globe is further increasing the number of tourists touching down on their famous white sand beaches. There are also an increasing number of offshore oil and gas contracts being formed as the Mediterranean Sea grows ever more popular. This boom of interest in maritime industries gives the area the perfect opportunity to adopt the blue economy and it will be interesting to follow its development over the next decade.

However, of course there are many challenges which must be overcome in order for the blue economy to work. Governments often need to think bigger, with sectors, ministries and even whole countries being joined together to create new laws which work as a whole rather than creating more disjointed pieces of legislation which forget that the ocean is used by more than just one party. These laws must also be put in place quickly before resource extraction starts and many developing nations may require advice and support from more developed countries to help create these laws and enforce them. Yet new technologies such as drones provide us with enormous opportunities to monitor and learn about the health and activities of the ocean like never before as they take us further and deeper into our blue planet. For many, the blue economy forms another incentive to start protecting our oceans more proactively whilst simultaneously benefitting societies on land. With 2021-2030 being the UN’s decade for ocean science, it will be exciting to watch the development of the blue economy and all the positive actions which come with it. Now is the perfect time to have your say on what our leaders should do as we head into the start of a new decade and potentially the start of a new future for the ocean.

By Neve McCracken-Heywood