Executive Summary
Oceans play a critical role in keeping our climate stable and our world livable. They regulate global temperatures, taking in solar energy and distribute heat around the globe via ocean currents. Additionally, oceans produce half of the oxygen we need and absorb 25% of all carbon dioxide emissions, while capturing 90% of the excess heat generated by these emissions. In fact, marine habitats could store ten times more carbon than terrestrial ecosystems per hectare.
Climate change poses significant risks to our planet, and the ocean is no exception. Increasing emissions are pushing up water temperatures, leading to more severe storms and heavy rainfall events. Additionally, higher ocean temperatures facilitate the thermal expansion of the ocean which together with melting glaciers is raising sea levels. This will threaten more than 680mn people who live in low-lying coastal zones (nearly 10% of the global population). Higher temperatures are also contributing to the acidification of oceans, causing irreversible changes to habitats and a decline of species that could jeopardize the food supply and livelihoods of those living in coastal areas.
The enormous amount of plastic waste entering the oceans is only set to increase further. Besides endangering marine wildlife, plastic waste also affects fishing and aquaculture, coastal tourism and the shipping industry. At current rates of production, it could lead to estimated economic damages of USD197bn by 2030 and USD434bn by 2050. But if plastic production continues to increase without the introduction of mitigation measures, these costs could escalate to USD229bn by 2030 and as much as USD731bn by 2050.
The production processes of the energy, industrial and consumer staples sectors have the most damaging effects on ocean ecosystem services, creating a vicious cycle that poses significant risks to industrial production itself. Marine ecosystems are fundamental to several industries, providing essential natural capital assets such as water, species, soils, sediments and atmospheric components. If the world’s oceans were an economy, it would be the seventh largest in the world, with the total value of its goods and services projected at USD2.5trn yearly. However, industrial processes such as construction activities, drilling for oil at sea and aquaculture contribute to the degradation of natural habitats, reducing biodiversity and natural capital, while byproducts such as drilling fluids, metal cuttings and accidental spillages introduce toxic chemicals into the environment. This is creating a vicious cycle, destroying the various natural capital assets that are so critical for industries.
Financing ocean conservation efforts is essential. But funding remains a drop in the bucket for now: the annual financing gap is estimated at USD150bn. Though ocean conservation is enshrined in the Sustainable Development Goals, it only attracts USD25.5bn in investments per year, far below the USD174bn required. To attract both public and private investors, policymakers need to highlight the returns on investment in ocean conservation, tapping options such as conservation trust funds, insurance incentives, blue bonds and debt-for-nature swaps. Tourism could contribute to financing marine conservation, too. Charging a fee that is then invested in community-based conservation projects could provide coastal communities with the resources needed to facilitate conservation while supporting their livelihoods.
The emerging market for carbon dioxide removal (CDR) is another way to attract blue investments. To reach global climate goals, CDR strategies will be essential. Several ocean-based techniques exist to harness and enhance the ocean's natural capacity to remove carbon from the atmosphere. One example is the restoration of blue carbon coastal ecosystems, such as mangroves, salt marshes or seagrass meadows, which sequester carbon dioxide at much higher rates than terrestrial forests. They also offer additional co-benefits such as flood and cyclone protection for coastal communities. These ocean-based carbon dioxide removal strategies can be used to complement land-based measures such as afforestation or Direct Air Carbon Capture and Storage (DACCS) to enable the negative carbon economy.
To limit the amount of plastic waste that ends up in the ocean, the most important thing is to reduce the amount of waste that is created in the first place. Boosting the circular economy would not only improve ocean health but can also unlock substantial economic benefits, with an estimated USD4.5trn in output growth potential as early as 2030. Apart from recycling and upcycling, this comprises the use of practices such as industrial symbiosis – reusing the waste of one industry as inputs for another – or the production of renewable and biodegradable products. The central goal is to improve resource efficiency along the whole supply chain, which reduces costs, protects the environment and promotes sustainable long-term growth. To limit nutrient pollution, it will also be necessary to control and limit agricultural and industrial runoff. This involves the use of improved irrigation practices, wastewater treatment and a more controlled use of pesticides.