Financing a sustainable ocean economy

Sumaila U.R., Walsh M., Hoareau K., Cox A., Teh L., Abdallah P., Akpalu W., Anna Z., Benzaken D., Crona B., Fitzgerald T., Heaps L., Issifu I., Karousakis K., Lange G.M., Leland A., Miller D., Sack K., Shahnaz D., Thiele T., Vestergaard N., Yagi N., Zhang J.

Fisheries Economics Research Unit, University of British Columbia, Vancouver, BC, Canada; Marine Conservation Finance Consulting and Ocean Finance Initiative, Asian Development Bank, Metro Manila, Philippines; University of Seychelles James Michel Blue Economy Research Institute, University of Seychelles, Anse Royale, Seychelles; Organization for Economic Co-operation and Development, Paris, France; Universidade Federal do Rio Grande—FURG, Rio Grande, Brazil; Ghana Institute of Management and Public Administration, Accra, Ghana; SDGs Center Universitas Padjadjaran, Kota Bandung, Indonesia; Australian National Centre for Ocean Resources and Security, Wollongong, NSW, Australia; The Royal Swedish Academy of Science, Stockholm, Sweden; Environmental Defense Fund, Washington, DC, United States; WWF-United Kingdom, Surrey, United Kingdom; The World Bank, Washington, DC, United States; Oceana-Europe, London, United Kingdom; Ocean Unite, Washington, DC, United States; Impact Investment Exchange (IIX), Singapore, Singapore; London School of Economics, London, United Kingdom; University of Southern Denmark, Odense, Denmark; University of Tokyo, Tokyo, Japan; Duke Kunshan University, Kunshan, China


Abstract

The ocean, which regulates climate and supports vital ecosystem services, is crucial to our Earth system and livelihoods. Yet, it is threatened by anthropogenic pressures and climate change. A healthy ocean that supports a sustainable ocean economy requires adequate financing vehicles that generate, invest, align, and account for financial capital to achieve sustained ocean health and governance. However, the current finance gap is large; we identify key barriers to financing a sustainable ocean economy and suggest how to mitigate them, to incentivize the kind of public and private investments needed for topnotch science and management in support of a sustainable ocean economy. © 2021, The Author(s).


Journal

Nature Communications

Publisher: Nature Research

Volume 12, Issue 1, Art No 3259, Page – , Page Count


Journal Link: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85107800803&doi=10.1038%2fs41467-021-23168-y&partnerID=40&md5=7f0bb90e9f0731fe97b40c9368254bbf

doi: 10.1038/s41467-021-23168-y

Issn: 20411723

Type: All Open Access, Gold, Green


References

Food and Agriculture Organisation of the United Nations (2018) The State of World Fisheries and Aquaculture 2018—Meeting the Sustainable Development Goals (FAO; Teh, L.C.L., Sumaila, U.R., Contribution of marine fisheries to worldwide employment (2013) Fish. Fish., 14, pp. 77-88; Hoegh-Guldberg, O., (2019) The Ocean as a Solution to Climate Change: Five Opportunities for Action, , World Resources Institute; (2019), Ngo, H.T. (eds.) Global assessment report on biodiversity and ecosystem services of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES secretariat; (2016) The Ocean Economy in 2030, , OECD Publishing; Hoegh-Guldberg, O., (2015) Reviving The Ocean Economy: The Case for Action, , Boston Consulting Group, WWF, Global Change Institute, The University of Queensland; Jackson, J., What was natural in the coastal oceans? (2001) Proc. Natl Acad. Sci. USA, 98, pp. 5411-5418. , COI: 1:CAS:528:DC%2BD3MXjs1Wgtbk%3D; Noone, K.J., Sumaila, U.R., Diaz, R.J., (2013) Managing Ocean Environments in a Changing Climate: Sustainability and Economic Perspectives, , Elsevier; Bopp, L., Multiple stressors of ocean ecosystems in the 21st century: projections with CMIP5 models (2013) Biogeosciences, 10, pp. 6225-6245; Pörtner, H.O., (2019) IPCC Special Report on the Ocean and Cryosphere in a Changing Climate, , IPCC; Gaines, S., (2019) The Expected Impacts of Climate Change on the Ocean Economy, , World Resources Institute; Winther, J.G., (2020) Integrated Ocean Management Blue Paper 14, , World Resources Institute; Walsh, M., Ocean Finance: Definition and Actions (Pacific Ocean Finance Program (2018) Pacific Islands Forum Fisheries Agency and Office, 6; de Vos, K., Hart, B., (2020) The Ocean Finance Handbook, , (Friends of Ocean Action; Teh, L.S.L., Cheung, W.W.L., Christensen, V., Sumaila, U.R., Can we meet the target? Status and trends for future fisheries sustainability (2017) Curr. Opin. Environ. Sustain., 29, pp. 118-130; Pinheiro, H.T., Hope and doubt for the world’s marine ecosystems (2019) Perspect. Ecol. Conserv., 17, pp. 19-24; Nicholls, R., Cazenave, A., Sea-level rise and its impact on coastal zones (2010) Science, 328, pp. 1517-1520. , COI: 1:CAS:528:DC%2BC3cXnsVWnt7g%3D; Catalysing Ocean Finance (2012) Volume 1: Transforming Markets to Restore and Protect the Global Ocean (United Nations Development Programme; Russ, G.R., Rapid increase in fish numbers follows creation of world’s largest marine reserve network (2008) Curr. Biol., 18, pp. R514-R515. , COI: 1:CAS:528:DC%2BD1cXns1ansb8%3D; Lester, S.E., Biological effects within no-take marine reserves: a global synthesis (2009) Mar. Ecol. Prog. Ser., 384, pp. 33-46; Roberts, C.M., Marine reserves can mitigate and promote adaptation to climate change (2017) Proc. Natl Acad. Sci. USA, 114, pp. 6167-6175. , COI: 1:CAS:528:DC%2BC2sXpt1OnsbY%3D; Binet, T., Diazabakana, A., Hernandez, S., (2015) Sustainable Financing of Marine Protected Areas in the Mediterranean: A Financial Analysis (, , Vertigo Lab, MedPAN, RAC/SPA, WWF Mediterranean; Sumaila, U.R., Updated estimates and analysis of global fisheries subsidies (2019) Mar. Policy, 109, p. 103695; Sala, E., Assessing real progress towards effective ocean protection (2018) Mar. Policy, 91, pp. 11-13; Libes, L., Eldridge, M., Who, what, where and how: 440 investors A deepening view of impact investing (2019) Investorflow.Org, , http://investorflow.org/wp-content/uploads/Investorflow-Report-440-Investors-March-2019.pdf; Basile, I., Dutra, J., (2019) Blended Finance Funds and Facilities: 2018 Survey Results. OECD Development Co-Operation Working Papers, 59. , OECD Publishing; Huwyler, F., (2014) Conservation Finance—Moving beyond Donor Funding To-Ward an Investor-Driven Approach, , Credit Suisse AG, WWF & McKinsey and Co; Sumaila, U.R., Investments to reverse biodiversity loss are economically beneficial (2017) Curr. Opin. Environ. Sustainability, 29, pp. 82-88; Rodrigues, J.G., Marine and coastal cultural ecosystem services: knowledge gaps and research priorities (2017) One Ecosyst., 2; Marine Protected Areas, O.E.C.D., Economics (2017) Management and Effective Policy Mixes (OECD Publishing; Melaku Canu, D., Estimating the value of carbon sequestration ecosystem services in the Mediterranean Sea: An ecological economics approach (2015) Glob. Environ. Change, 32, pp. 87-95; Lee, T., Nam, H., A study on green shipping in major countries: in the view of shipyards, shipping companies, ports, and policies (2017) Asian J. Shipping Logist., 33, pp. 253-262; Coady, D., Parry, I., Le, N.P., Shang, B., (2019) Global Fossil Fuel Subsidies Remain Large: An Update Based on Country-Level Estimates, , IMF Fiscal Affairs Department; Schuhbauer, A., Chuenpagdee, R., Cheung, W., Greer, K., Sumaila, U.R., How subsidies affect the economic viability of small scale fisheries (2017) Mar. Policy, 82, pp. 114-121; Schuhbauer, A., Sumaila, U.R., Economic viability and small-scale fisheries—a review (2016) Ecol. Econ., 124, pp. 69-75; Harper, S., Adshade, M., Lam, V.W.Y., Pauly, D., Sumaila, U.R., Valuing invisible catches: estimating the global contribution by women to small-scale marine capture fisheries production (2020) PLoS ONE, 15. , COI: 1:CAS:528:DC%2BB3cXlvVSgsbg%3D; Österblom, H., (2019) Towards ocean equity Blue Paper 13, , World Resources Institute, 2020; PEMSEA Tropical Coasts. The marine economy in times of change (2009) PEMSEA, 16, p. 80; (2020) Economic Development Board Mauritius. Blue Economy: The Development of a New Pole of Growth through The Sustainable Use of Our Maritime Zone, , https://www.edbmauritius.org/opportunities/ocean-economy/; (2020) . Sustainable blue economy., , https://www.unepfi.org/ecosystems/sustainable-blue-economy-finance/; (2020) The Role of Ocean Finance in Transitioning to a Blue Economy in Asia and the Pacific—Explainer, , https://development.asia/explainer/role-ocean-finance-transitioning-blue-economy-asia-and-pacific; Fritsch, D., (2020) Investors and the Blue Economy, , Credit Suisse; Koh, H., Karamchandani, A., Katz, R., (2012) From Blueprint to Scale: The Case for Philanthropy in Impact Investing, , MONITOR Group; (2015) Integrated coastal management and sustainable development of coasts and oceans; Un, O., (2015) Small Island Developing States in Numbers, , http://unohrlls.org/small-island-developing-states-in-numbers/; Whisnant, R., Vandeweerd, V., Investing in the new Blue Economy: The changing role of international development organizations in catalyzing private sector investment in support of regional strategic action programmes for the sustainable development of coasts and oceans (2019) J. Ocean Coast. Econ., 6, p. 8; Kockel, A., Ban, N.C., Costa, M., Dearden, P., Addressing distribution equity in spatial conservation prioritization for small-scale fisheries (2020) PLoS ONE, 15. , COI: 1:CAS:528:DC%2BB3cXpvFKhsrw%3D; Mumford, J.D., Leach, A.W., Levontin, P., Kell, L.T., Insurance mechanisms to mediate economic risks in marine fisheries (2009) ICES J. Mar. Sci., 66, pp. 950-959; (2014) Morgan and Global Impact Investing Network (GIIN), , Spotlight on the market, The impact investor survey (JP Morgan; (2015) . Blue economy for business in East Asia: Towards an integrated understanding of blue economy; . Towards investment in sustainable fisheries (2014) A Framework for Financing the Transition (Environmental Defense Fund and the Prince of Wales’s International Sustainability Unit; McClurg, T., (2014) Conceptual Framework for Identification and Assessment of Potential Fisheries Investments (Consultancy Report Prepared for the World Bank; Thiele, T., Gerber, L.R., Innovative financing for the High Seas (2017) Aquat. Conserv., 27, pp. 88-99; Offshore Innovation Widens Renewable Energy Options, I.R.E.N.A., Opportunities, challenges and the vital role of international cooperation to spur the global energy transformation (2018) Brief to G7 Policy Makers (International Renewable Energy Agency; Hemer, M.A., Manasseh, R., McInnes, K.L., Penesis, I., Pitman, T., Perspectives on a way forward for ocean renewable energy in Australia (2018) Renew. Energy, 127, pp. 733-745; Principles, P., Poseidon principles a global framework for responsible ship finance (2020) Poseidon Principles., , orghttps://www.poseidonprinciples.org/; Lubchenco, J., Cerny-Chipman, E.B., Reimer, J.N., Levin, S.A., The right incentives enable ocean sustainability successes and provide hope for the future (2016) Proc. Natl Acad. Sci. USA, 13, pp. 14507-14514; Henriksson, P.J.G., Unpacking factors influencing antimicrobial use in global aquaculture and their implication for management: a review from a systems perspective (2018) Sustain. Sci., 13, pp. 1105-1120; Gutiérrez, N.L., Eco-label conveys reliable information on fish stock health to seafood consumers (2012) PLoS ONE, 7; Biodiversity, O.E.C.D., Finance and the Economic and Business Case for Action (2019) Report Prepared for the G7 Environment Ministers’ Meeting 5-6 May 2019 (OECD; (2019) Global Dialogue on Ocean Accounting and First Annual Meeting of the Global Ocean Accounts Partnership, , https://www.unescap.org/sites/default/files/Global_Dialogue_on_Ocean_Accounting-Draft_Workshop_Report_for_comment.pdf; (2018) Companion to the inventory of support measures for fossil fuels 2018, , (OECD Publishing; (2017) OECD. Principles on Blended Finance, , OECD Publishing; Sumaila, U.R., A cautionary note on individual transferable quotas (2010) Ecol. Soc., 15, p. 36; Roth, N., Thiele, T., von Unger, M., (2019) Blue Bonds: Financing Resilience of Coastal Ecosystems, , Blue Natural Capital Financing Facility; Mountford, H., Keppler, J.H., Financing incentives for the protection of biodiversity (1999) Sci. Total Environ., 240, pp. 133-144. , COI: 1:CAS:528:DyaK1MXmtlehs7g%3D; Jouffray, J.B., Crona, B., Wassénius, E., Bebbington, J., Scholtens, B., Leverage points in the financial sector for seafood sustainability (2019) Sci. Adv., 5, p. eaax3324; Galaz, V., Finance and the Earth system–exploring the links between financial actors and non-linear changes in the climate system (2018) Glob. Environ. Change, 53, pp. 296-302; Edmans, A., Blockholders and corporate governance (2014) Annu. Rev. Financial Econ., 6, pp. 23-50; (2018) Norges Bank Investment Management. Ocean Sustainability Expectations Towards Companies, , https://www.nbim.no/en/the-fund/responsible-investment/principles/expectations-to-companies/ocean-sustainability/; Sumaila, U.R., Illicit trade in marine fish catch and its effects on ecosystems and people worldwide (2020) Sci. Adv., 6, p. eaaz3801. , COI: 1:CAS:528:DC%2BB3cXitFGmsrjE; Widjaja, S., (2020) IUU Fishing and Associated Drivers Blue Paper 15, , World Resources Institute; Jambeck, J., Pollution and a regenerative economy: Municipal, industrial, agricultural, and maritime waste, its impacts (2020) And Solutions Blue Paper 5 (World Resources Institute; Miller, D.D., Bacani, B., Fabry, O., (2018) Risk Assessment and Control of IUU Fishing for the Marine Insurance Industry: Guidelines to Control Or Mitigate the Risk of Insuring Vessels and Companies Associated with Illegal, Unreported and Unregulated (IUU) Fishing, , Oceana and UNEP; Niehörster, F., (2018), Murnane, R. J. Ocean Risk and the Insurance Industry (XL Catlin Services SE; Carr, S., (2018) Can We Insure Our Way to Healthier Oceans and Communities? Blog Post on the Skimmer on Marine Ecosystems and Management, , https://meam.openchannels.org/news/meam/can-we-insure-our-way-healthier-oceans-and-ocean-communities; Environmental Defense Fund (2018) Financing Resilient Communities and Coastlines, , Environmental Defense Fund; White, C., Rare’s Meloy Fund invests in Filipino seafood firm Meliomar (2016) Seafood Source, , https://www.seafoodsource.com/news/supply-trade/rare-s-meloy-fund-invests-in-filipino-seafood-firm-meliomar; Kiernan, L., Aqua-Spark announces two investments in Madagascar (2016) U.S. Global Aginvesting, , http://www.globalaginvesting.com/aqua-spark-announces-two-investments-madagascar-u-s/; Lloyd-Evans, M., Who is investing in Marine Biotechnology? Presentation at the first ERA-MBT Stakeholder meeting 28-29 October (2014) ERA-NET, , http://www.marinebiotech.eu/sites/marinebiotech.eu/files/public/activities/Stakeholder%20meeting/Meredith_lloydEvans.pdf; Taal, M.D., Development of the Sand Motor (2016) Concise Report Describing the First Four Years of the Monitoring and Evaluation Programme, , Deltares; Spliethoff Transport, B.V.I.N.G., And EIB provide EUR 100M for Spliethoff’s green shipping investments., , https://www.spliethoff.com/news/ing-and-eib-provide-eur-110m-for-spliethoff-s-green-shipping-investments(2019), Spliethoff

Indexed by Scopus

Leave a Comment