Covering over 70% of our Planet, the Ocean is not just a vast expanse of water but a fundamental component of life on Earth. Beyond its awe-inspiring beauty lies a critical ecosystem that sustains biodiversity, regulates climate, and supports human livelihoods. It is also our Planet’s greatest lungs, producing 50% of the oxygen we breathe, and absorbing over 25% of our carbon emissions1.
However, as we increasingly feel the repercussions of climate change and environmental degradation, we are beginning to grasp the extent of our negative impact on the Ocean — Corals bleach, fish populations dwindle, waters warm, and plastic pollution proliferates.
In confronting these realities, it is imperative to reevaluate our relationship with the Ocean and harness its potential for sustainable development. In this challenge lies a beacon of hope: the Blue Economy.
The blue economy is defined by The World Bank as the “sustainable use of ocean resources to benefit economies, livelihoods and ocean ecosystem health”. In other words, it describes the economic activities associated with Oceans and Seas2.
It is also a holistic framework that recognizes the interconnectedness of economic prosperity, social equity, and environmental stewardship to ensure long-term sustainability.
As the Ocean presents incredible potential for fueling our economy, the blue economy is estimated to be worth over US$1.5 trillion per year globally, and is set to double to $3 trillion by 20303.
Blue economy encompasses many sub-sectors, such as:
Three sub-sectors are experiencing the most attention and growth:
Offshore renewable energy presents a promising avenue for sustainable energy production. Its ocean technologies harness the vast energy potential of the Ocean while reducing reliance on fossil fuels, and include:
Offshore wind power is the most promising: offshore wind sites could provide up to 36 000 TWh of electricity per year globally4, which almost meets the global electricity demand projected for 2040. Its market size exceeded USD47.5 billion in 2022 and is projected to expand at over 16% CAGR during the period of 2023 to 20325.
With approximately 90% of global trade transported by sea, maritime shipping is the backbone of the global economy.
As its maritime trade volumes are set to triple by 20506, it faces urgent reforms from its severe environmental footprint, characterized by greenhouse gas emissions and marine pollution. The industry has been taking steps to lower its environmental footprint, with new cleaner technologies being developed to:
However, this transition is being challenged by geopolitical crises that pose severe risks to decarbonization targets. For instance, the industry faces a 70% rise in emissions7 due to commercial vessels seeking alternative routes to the Suez Canal, the Gulf of Aden, and the Red Sea corridor to avoid Yemeni Houthi attacks.
As 75% of the major wild fish stocks drop due to overfishing and habitat degradation, blue aquaculture emerges as a sustainable solution to meet the growing demand for seafood.
Blue aquaculture — the cultivation and harvesting of both freshwater and marine aquatic plants and animals — currently produces over 50% of all the seafood consumed globally. The global market for aquaculture was estimated at US$191.3 billion in 2022 and is projected to reach US$287.2 billion by 2030, growing at a CAGR of 5.2% over 2022-20308.
Although environmental impacts, disease management, and genetic modification necessitate careful consideration, blue aquaculture has the potential to ease our carbon footprint: it can purify ocean water, help mitigate local ocean acidification, provide critical habitat for marine life and materials as varied as biofuels, industrial chemicals, and reef building materials9.
Examples of aquaculture technologies being explored include:
The rapidly growing Blue Economy presents a fertile ground for venture capital investment. Over the past decade, VC funding in blue economy ventures has surged by 10x in the last 8 years, driven by the promise of sustainable returns and positive environmental impact10.
Positioned at the intersection of environmental well-being and economic progress, the blue economy presents exciting opportunities and untapped potential for returns across other sectors such as AI & Big Data, IoT, Agtech & New Food, and Transportation.
As Venture Capitalists, it is our role to support technological advancement while respecting the ecosystems of our Ocean.
Investments must prioritize venture scalable solutions to reducing carbon emissions and pollution, enhancing energy efficiency, and harnessing the Ocean's natural capital to halt biodiversity loss. Substantial funding for ocean science, conservation efforts, and technological innovation is essential to safeguarding the future of our planet's most vital resource.
The Blue Economy is not just a concept; it is a commitment to our planet's future. It is about recognizing the immense value of our Ocean, respecting its ecosystems, and harnessing its potential for sustainable development.
As we face pressing environmental challenges, embracing the Blue Economy is more than an option – it is a necessity. By working together, we can build a world where economic prosperity goes hand in hand with environmental preservation.
Let's seize this opportunity to shape a brighter, bluer future for all.
An article by Léa Hein.
1 https://www.un.org/en/climatechange/science/climate-issues/ocean
2 https://www.worldbank.org/en/news/infographic/2017/06/06/blue-economy
3 https://www.oecd.org/ocean/topics/ocean-economy/
4 https://www.iea.org/energy-system/renewables/wind#:~:text=Offshore%20wind%20has%20a%20remarkable%20potential&text=Its%20study%20showed%20that%20the,electricity%20demand%20projected%20for%202040
5 https://www.skyquestt.com/report/offshore-wind-energy-market
6 https://www.oecd.org/ocean/topics/ocean-shipping/
7 https://ocean14capital.com/2024/02/29/shipping-sector-will-see-70-emissions-rise-as-red-sea-corridor-is-avoided/
8 https://finance.yahoo.com/news/global-aquaculture-market-reach-287-014500173.html
9 https://www.wilsoncenter.org/article/new-blue-economy-seafood-sector-sustainable-aquaculture-cultivated-seafood-and-plant-based
10 https://dealroom.co/guides/blue-economy#:~:text=In%20recent%20years%2C%20there%20has,in%20the%20last%208%20years
