The New Blue Economy: the Future of Sustainability

By M. Spalding. 2016

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The world’s ocean is the world’s life support. Many human activities have defined a negative relationship with the ocean. Simply put: we dump too much bad stuff in, and we take too much good stuff out. The traditional ocean economy—those ocean-based and ocean-related activities from which humans derive economic benefit— did not acknowledge or honor the ocean’s natural services, nor its finite capacity to take human abuse without undermining those services on which we depend. The “new blue economy” is the term of art for identifying those activities that improve the human relationship with the ocean and for aligning our systems of accounting and metrics to both define and enhance our ocean-positive economy. It also allows for us to account for “eco-system services” (provisioning, regulating, supporting and cultural) provided by the ocean to plants and animals (including humans). What will it take to define the new blue economy with metrics and definitions that are universally understood? First, the natural services of the ocean must be acknowledged and accounted for. Second, we must define what human activities comprise the “new blue economy,” and integrate those definitions into our standard accounting practices globally. Third, we must act to support and enhance those ocean-positive activities so that we achieve a more sustainable relationship with the ocean so that it can continue to provide the goods and services that sustain us. These steps are under way around the world and can serve as the foundation of a broader effort to truly achieve a positive human relationship with the ocean in ways that success (and enhanced economic, environmental, and human health) can be accounted for, measured, and sustained. This research article is available in Journal of Ocean and Coastal Economics: https://cbe.miis.edu/joce/vol2/iss2/8 1. PARAMETERS FOR DEMARCATING BUSINESSES THAT SUPPORT OCEAN SUSTAINABILITY We have long defined “green business" as a subset of business in general. Likewise, “ecotourism” is a subset of travel and tourism. We are now contemplating the opportunity to track the new Blue Economy as a subset of the entire global oceangenerated economy. We know the many misuses of “green” and “eco,” and that other labels have been applied in ways that are misrepresentations. However, to best understand statistics regarding demand, growth, and contribution of a particular subset of sectors, we have worked hard to identify what is in each of those subsets, and what is not. Thus, likewise, we must set forth criteria for us to distinguish the sustainable, new Blue Economy sectors for separate tracking, even as we develop national income accounts related to the ocean in general. In order to reach a general consensus on sustainability, we need a locally accurate, spatially explicit quantification of all things relating to ocean wealth in metrics that are understandable and usable by decision-makers at varying scales. These metrics will help guide us in determining which industries fall into the “new (i.e. sustainable) blue economy” and which are outside that scope. As such we must understand what is good for the ocean, for the life within the ocean, for the human communities who depend on the ocean, and for strengthening the diverse services the ocean provides to support all life on earth. In turn, we can aggregate those activities, at least conceptually, to understand what the new Blue Economy really can be. 2. WHY THE OCEAN ECONOMY? “Protecting our oceans is not a luxury. It is a necessity that contributes to our economy, our climate and our way of life. Working together, we can change the current course and chart a sustainable future,” US Secretary of State, John Kerry (2014). It is essential to standardize our methods and definitions for valuing the coasts and ocean. The world’s population depends upon the ocean for its very existence. The ocean regulates our climate and our weather. It generates half of the oxygen 1 Spalding: The New Blue Economy Published by Digital Commons @ Center for the Blue Economy, 2016 we breathe (NOAA 2014). It provides food and income for billions of people. Covering almost three quarters of the planet, the ocean is the life support system for planet earth (see table 1). As a proxy, we express this life support as “eco-system services:” provisioning (e.g. food, oxygen and water); regulating (e.g. climate/temperature regulation, coastal stabilization); supporting (e.g. pollution filtration, waste processing, transportation of goods); and cultural services (e.g. aesthetics, recreation, fun and inspiration). Table 1. General Characteristics of the Ocean Contains 80% of Earth’s life Carries more than 90% of internationally traded goods Produces more than half of the oxygen we breathe and provides a livelihood for an estimated three billion people who depend on marine and coastal areas, including for fishing, tourism, trade, transport and energy (UN Conference on Sustainable Development 2012 Fact Sheet). Moderates the planet’s climate by absorbing about 90% of the heat trapped in the ever-thickening atmosphere. Provides the primary source of protein for more than 3.5 billion people. Fisheries alone contribute $100 billion per year to the global economy (Food and Agriculture Organization of the United Nations 2014) 13 of the world’s 20 megacities are coastal In reality, these statistics act only as a backdrop to the need for an economy classification specifically related to the ocean and its myriad of goods and services. Half of the world’s people live within 100 kilometers of the coast (Small and Nicholls 2003). According to a National Ocean Economics Program study, “In 2010 the ocean economy comprised over 2.7 million jobs and contributed over $258 billion to the GDP of the United States” (Kildow et al. 2014, 8). Some argue that global ocean economic activity is estimated between $3 trillion and $6 trillion (Cicin-Sain 2015). But we don’t know for sure. In addition to this ocean-sized economy, we also want to know what could and should be encompassed in the new Blue Economy. The potential of our coasts and ocean to meet sustainable development needs is immense. And, if they can be maintained in and/or restored to a healthy and productive state, the ocean will play an even more important role in humanity’s future. In many ways, the coasts and ocean are the final on-ramp to merge onto our road to sustainable development. 2 Journal of Ocean and Coastal Economics, Vol. 2, Iss. 2 [2016], Art. 8 https://cbe.miis.edu/joce/vol2/iss2/8 DOI: 10.15351/2373-8456.1052 3. CHANGES DRIVING THE NEW BLUE ECONOMY Why don’t we know how big the ocean and maritime tech industries are today? Traditional maritime industries such as fishing and shipbuilding no longer dominate the maritime sector in many countries. In addition to these, and the diverse component industries (e.g. fittings makers, engine builders, and other suppliers) that are part of the visible maritime sector, there are sectors that are less visible. Fast growing blue technology companies have remained largely invisible, because 1) they typically sell outside of wherever they are located (and thus they do not belong to the local Chamber of Commerce or Economic Development Agency nor do politicians necessarily know they exist), and 2) because they are so diverse, it is not immediately obvious why they should participate in a larger regional cluster association representing companies that are linked only by being ocean-related. Additionally, the human relationship with the ocean is changing, and the old ocean economy is adapting to respond to new demands, ecological needs, and the dynamics of global climate change. Goal 14, “Conserve and Sustainability Use the Oceans, Seas and Marine Resources for Sustainable Development,” of the recently adopted UN Sustainable Development Goals (SDG) for the global ocean outlines seven targets and three means of implementation relating to the sustainable use of the ocean (see table 2). Particularly noteworthy in this context is target 14.7, which declares, “By 2030 increase the economic benefits to small island developing states (SIDS) and least developed countries (LDCs) from the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture and tourism.” This focus on economic development of SIDs and LDCs is starting to create a shift in management and protection of marine resources and their social and economic impact. Table 2. UN Sustainable Development Goals and ocean SDG 14 supports 9 of the other 17 SDGs, thus, SDG 14 is absolutely crucial to building a sustainable future. 3 Spalding: The New Blue Economy Published by Digital Commons @ Center for the Blue Economy, 2016 • SDG1 – end poverty

Subfields: Global and Planetary Change, Management, Monitoring, Policy and Law

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