UNCTAD Calls for "Blue Deal" for Ocean Economy

A report by the United Nations Conference on Trade and Development (UNCTAD) has called for a "Blue Deal" – a global initiative towards sustainable use of the world's oceans that are home to 80% of all life.

The Trade and Environment Review 2023, released on 8 May, analyzes the ocean economy, estimated at $3-6 trillion. The report has been presented at the 3rd UN Trade Forum.

The review outlines how human activity and multiple global crises have significantly impacted various sectors, including fishing, seafood, shipping, and coastal tourism. It builds on recommendations from the 4th UN Oceans Forum and the 2nd UN Ocean Conference held in 2022.

Pedro Manuel Moreno, UNCTAD Deputy Secretary-General, emphasized the importance of striking a balance between exploiting and preserving ocean resources. "The ocean economy offers many opportunities. We must strike the right balance between benefiting from the ocean and protecting its resources," Moreno said.

UNCTAD's report highlights the potential of seaweed farming and plastics substitutes as sectors that could benefit developing countries. The seaweed market has tripled over the last two decades, from $4.5 billion in 2000 to $16.5 billion in 2020. The trade in plastics substitutes in 2020 amounted to $388 billion, just one-third the amount traded in fossil fuel-based plastics, suggesting a vast area for growth.

The report urges governments and businesses to increase funding for research and development of emerging sustainable sectors within the ocean economy. It encourages companies to invest in developing countries to enhance their technology, skills, and productive capacities to capitalize on new ocean opportunities.

Investing in emerging ocean sectors could help developing countries diversify their ocean exports, currently estimated at $1.3 trillion in 2020.

However, the report warns about the detrimental effects of government subsidies on fishing activities, estimated at $35 billion globally. Approximately $20 billion of these subsidies potentially contribute to overfishing by enhancing the fishing industry’s capacity through mechanisms like fuel subsidies or financial incentives for larger boats. This is particularly concerning given that 34% of global fish stocks are below biologically sustainable levels.

The report urges countries to ratify the World Trade Organization’s (WTO) Agreement on Fisheries Subsidies and the Marine Biodiversity Beyond National Jurisdiction agreement, better known as the “High Seas Biodiversity Treaty”.

The Sustainable Development Goal dedicated to life below water (SDG 14) remains the least funded of all the goals. Recent estimates suggest that $175 billion per year will be the minimum needed to achieve SDG 14 by 2030. Without a global “Blue Deal”, achieving these targets and reaping potential benefits will be more challenging.

"Now is the time to set a new course by investing more in building a sustainable ocean economy,” Moreno concluded.