Scaling the ocean economy – bangkokpost.com

Report on Ocean Finance and the Sustainable Development Goals

Introduction: The Ocean’s Critical Role in the 2030 Agenda

Recent international forums, including the Blue Economy and Finance Forum (BEFF) and the United Nations Ocean Conference, have underscored a global consensus: the protection of marine ecosystems is a fundamental imperative for achieving the Sustainable Development Goals (SDGs). The ocean, covering over two-thirds of the planet, is a critical ally in global efforts to achieve:

• SDG 13 (Climate Action): The ocean is a primary regulator of the global climate.
• SDG 2 (Zero Hunger): It provides essential food security for billions of people.
• SDG 8 (Decent Work and Economic Growth): It supports countless livelihoods through fisheries, tourism, and shipping.

Without a healthy ocean, the overarching goal of sustainable development remains unattainable. However, a significant financial shortfall is impeding progress towards SDG 14 (Life Below Water). Closing this gap requires reframing ocean protection not as a cost but as a high-value investment in global resilience and prosperity.

Financial Mobilization for the Blue Economy

Recent Commitments and Existing Shortfalls

The BEFF successfully galvanized political leaders, investors, and civil society, demonstrating a powerful application of SDG 17 (Partnerships for the Goals). The event facilitated the unlocking of approximately €8.7 billion for ocean-positive projects through innovative instruments like blue bonds and blended-finance vehicles. While this represents a significant step, these commitments are only a fraction of the investment required to meet the targets outlined in SDG 14. A more strategic approach is necessary to leverage public and philanthropic capital to de-risk projects and attract sustained private finance at scale.

Strategic Imperatives for Scaling Ocean Finance

To effectively channel capital towards a sustainable blue economy, three core imperatives must be addressed:

1. Develop a Pipeline of Investable Projects

   A primary barrier to investment is the lack of bankable projects, as many initiatives fail to move beyond the pilot stage due to insufficient early-stage financing and technical support. Efforts to bridge this gap include:

   • Private equity initiatives like the ReOcean Fund, which invests in companies advancing technologies for marine ecosystem restoration and shipping decarbonization, directly supporting SDG 9 (Industry, Innovation, and Infrastructure) and SDG 14.
   • A call for governments and development banks to utilize public finance to redefine investment risk, thereby making ocean-positive projects more attractive to private investors.

2. Establish Enabling Conditions for Investment

   Private capital requires a stable and supportive policy environment. Key actions to create these conditions include:

   • Implementing ambitious and credible net-zero and nature-positive targets for ocean-relevant sectors such as shipping, fisheries, and tourism.
   • Eliminating harmful government subsidies that encourage overfishing, a direct contradiction of SDG 14.6, and repurposing these funds to support a sustainable transition. The WTO Agreement Fish 1 is a crucial step towards curbing illegal fishing practices as per SDG 14.4.
   • Strengthening investor confidence through commitments from public development banks, such as the Finance in Common Ocean Coalition’s joint statement to align portfolios with a regenerative blue economy, embodying the principles of SDG 17.

3. Align All Financial Flows with Sustainability Goals

   Systemic change requires the alignment of the entire financial system with climate, biodiversity, and equity objectives. This involves:

   • Governments integrating environmental and social externalities into public budgets and national accounting systems.
   • Financial actors developing clear taxonomies and metrics to guide investment decisions and prevent greenwashing, ensuring alignment with SDG 13 and SDG 14.
   • Utilizing blended-finance mechanisms and biodiversity credits to create incentives that align private finance with measurable sustainability outcomes.

Conclusion: Translating Momentum into a Coordinated Strategy

The foundation for a sustainable blue economy is being established, with innovative financial instruments like sovereign blue bonds gaining traction. However, this momentum must be consolidated into a clear and coordinated strategy for the coming decade. Such a strategy is essential to unlock the necessary capital to protect marine ecosystems and ensure the achievement of SDG 14 and the broader 2030 Agenda for Sustainable Development.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article discusses a range of interconnected issues centered on ocean conservation and the development of a sustainable blue economy. Based on the content, the following Sustainable Development Goals (SDGs) are directly addressed or strongly connected:

• SDG 14: Life Below Water: This is the central theme of the article. The entire text focuses on the imperative to protect and restore marine ecosystems, manage marine resources sustainably (like fisheries), and finance ocean-positive projects.
• SDG 13: Climate Action: The article explicitly links ocean health to climate change, stating the ocean is a “critical ally in our efforts to tackle climate change.” It also mentions specific actions like “decarbonising shipping” and aligning investments with “net-zero” targets.
• SDG 17: Partnerships for the Goals: The article heavily emphasizes the need for collaboration to achieve ocean protection goals. It highlights partnerships between governments, private investors, philanthropists, multilateral organizations, and civil society, as exemplified by the Blue Economy and Finance Forum (BEFF) and the Finance in Common Ocean Coalition. The concept of “blended-finance vehicles” is a direct example of this SDG in action.
• SDG 8: Decent Work and Economic Growth: The vision of a “thriving ocean economy” that provides “employment” and “livelihoods” directly connects to this goal. The article discusses creating sustainable economic value from ocean-relevant sectors like shipping, fisheries, and tourism.
• SDG 2: Zero Hunger: The article links a healthy ocean to “food security” and discusses the importance of protecting fish stocks from overfishing and illegal practices, which is crucial for a stable global food supply.
• SDG 9: Industry, Innovation, and Infrastructure: The text mentions investment in “companies pioneering technologies” to advance marine ecosystem restoration and decarbonization. It also refers to key sectors like “shipping” and “coastal infrastructure,” which fall under this SDG.

2. What specific targets under those SDGs can be identified based on the article’s content?

Several specific SDG targets can be identified from the actions and goals described in the article:

1. Target 14.2: “By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts…” The core message of the article is the need to invest in “protecting and restoring marine ecosystems.”
2. Target 14.4: “By 2020, effectively regulate harvesting and end overfishing, illegal, unreported and unregulated fishing…” The article directly references the “WTO Agreement Fish 1” which aims to curb “illegal, unreported, unregulated fishing” and ongoing negotiations for “Fish 2” to “tackle overfishing capacities.”
3. Target 14.6: “By 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing…” The text explicitly calls for “eliminating poorly designed and harmful government subsidies, such as those driving exploitation of overfished stocks.”
4. Target 17.3: “Mobilize additional financial resources for developing countries from multiple sources.” The article’s primary focus is on closing the finance gap for ocean protection by “unlocking funding for ocean-positive projects” through instruments like “blue bonds and blended-finance vehicles, which combine public, private, and philanthropic resources.”
5. Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…” The BEFF event, which brought together “political leaders, entrepreneurs, investors, philanthropists, and representatives of multilateral organisations and civil society,” is a direct example of this target.
6. Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The call for governments to create enabling conditions guided by “net-zero and nature-positive targets” aligns with this target.
7. Target 8.4: “Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation…” The entire concept of a “regenerative and sustainable blue economy” that offers both profit and resilience reflects this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions or implies several quantitative and qualitative indicators that can be used to measure progress:

• Financial Mobilization: The article provides concrete figures that serve as indicators of financial commitment.
  • The “€8.7 billion” announced at the BEFF is a direct indicator of financial resources mobilized for ocean projects (relevant to Target 17.3).
  • The “US$73 million” raised by the ReOcean Fund is another specific indicator of investment in ocean-focused technology and companies.
• Policy and Regulation Implementation: Progress can be measured by the adoption and enforcement of key international agreements.
  • The status of the “WTO Agreement Fish 1” being “now in force” is a key indicator of progress against harmful fishing practices (relevant to Target 14.4 and 14.6).
  • The amount of “harmful government subsidies” that are eliminated or repurposed would be a direct indicator of progress.
• Partnership and Commitment: The level of engagement from key institutions is an important indicator.
  • The number of public development banks (over 20) that endorsed the “Finance in Common Ocean Coalition joint statement” indicates the scale of institutional commitment to sustainable ocean finance (relevant to Target 17.17).
• Project Pipeline Development: The health of the investment ecosystem can be measured.
  • The creation of a “robust pipeline of investable projects” is mentioned as a key imperative. The number and value of projects moving from pilot to scalable stages would be a critical indicator.
• Corporate and Sectoral Alignment: The adoption of sustainable practices by the private sector is a key measure.
  • The development and adoption of “clear taxonomies and metrics” by financial actors to prevent greenwashing.
  • The number of companies in sectors like shipping and fisheries that adopt “net-zero and nature-positive targets.”

4. Summary Table of SDGs, Targets, and Indicators

Source: bangkokpost.com