Established in 2015, the United Nations’ Sustainable Development Goal (SDG) 14, “Life Below Water”, aims to conserve and sustainably use ocean resources and development. With just six years remaining to meet this goal, the yearly funding required to do so has unfortunately continued to fall short, with UN under-secretary-general Liu Zhenmin estimating a gap of around US$149.0 billion ($196.8 billion) per year in 2020.
In 2022, the UN reported that this number had swelled to some US$175 billion, while a World Economic Forum white paper revealed that just under US$10 billion was invested in the field between 2015 and 2019.
Why, then, are the public and private sectors seemingly turning a blind eye to what the UN Environment Programme describes as a global economy worth US$1.5 trillion, with 31 million jobs at risk from negative impacts on ocean-linked sectors?
From the perspective of Janet Shum, sustainable investing specialist, Asia-Pacific at Citi Global Wealth, the obvious reason is low visibility. “The climate and pollution impact on marine ecosystems, such as ocean acidification and coral reef bleaching, is less visible and less apparent to us, compared to the physical climate risks on land such as flooding, droughts, wildfires and extreme heat,” says Shum in an interview with The Edge Singapore.
“A significant amount of capital, resources and credible expertise are needed to support underwater research, especially in the deep sea. Moreover, marine conservation and the blue economy is often considered as a niche area. There’s insufficient awareness and understanding of the interconnectedness of the ocean with the broader sustainability agenda as well as its economic impact,” adds Shum.
In the same boat
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Akin to SDG14, the ocean economy or blue economy is defined by the World Bank as the sustainable use of ocean resources for economic growth, improved livelihoods and jobs while preserving the health of the ocean ecosystem.
The sectors within this are wide-ranging; from fishing industries and offshore engineering to renewable energy. According to a 2021 study by the World Wildlife Fund, this translates to an ecosystem valued at US$8.4 trillion, with a whopping 66% of globally listed companies dependent on ocean resources one way or another.
Shum says that getting investors to understand the balance between economic growth, environmental preservation and social responsibility as well as the risk of any potential adverse impact requires a holistic approach.
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“Because the metrics for measuring environmental impact are quantitative, social impact may not be fully captured and reflected via these metrics. Social impact such as outreach, job creation and income generated from blue economy businesses can be tracked quantitatively, but other important indicators such as quality of life, cultural preservation and well-being are more complex.”
As such, focusing only on the numerical metrics may not show the full story and qualitative information, such as case studies, outcomes from focus group discussions, and testimonials from relevant stakeholders and community members. “These can complement the quantitative metrics to help investors make decisions,” she adds.
While many investors have yet to catch on to the blue economy, the situation of its more well-known sister — the so-called green economy — is starkly different.
A study by the London Stock Exchange Group published this year showed that growth of the green economy outpaced that of the broader market, achieving a CAGR of 13.8% over the past decade, compared to 8.3% for global equities.
Were it to be considered its own sector, the green economy would rank as the fourth largest, boasting a market capitalisation exceeding US$7 trillion.
Daniel Mira-Salama, lead environment specialist at the World Bank, says that although both the blue and green economies share similarities, the key differences in initiating projects between the two lie in ocean governance and securing broad-based alignment.
Speaking at The Ocean Collective Summit (TOCS) panel on Oct 18, he explains: “One of the critical points to make these projects work is to have everyone. That sounds obvious, but you need to have the right political championing, support, private sector, incentives for the community and the beneficiaries. This includes enabling the environment with non-government organisations, data and universities."
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Organised by The International SeaKeepers Society and The Fabien Cousteau Ocean Learning Centre, the annual two-day summit brought together conservationists, business leaders, and policymakers to advance the shared objective of protecting the world’s oceans.
“What doesn’t work well is to simply impose solutions. When we bring solutions that are not locally-based or accepted or when the financing is only sustainable at that point in time, what happens is when you go back to the project three years later, you see infrastructure stranded with no maintenance and it’s heartbreaking," continues Mira-Salama.
One way to ramp up investment in the blue economy is through issuing blue bonds.
Although conversation on pumping direct capital into specific firms and individual initiatives dedicated to conserving marine ecosystems have swirled around in recent years, there was a notable absence of clear guidelines on the appropriate allocation of investors’ funds.
This changed in September 2023, with the International Capital Market Association issuing guidance on “blue-themed bonds”. Blue bond-funded projects span a range of initiatives, from pollution control and wastewater management to the preservation of marine protected areas.
More recently in October this year, virtual asset trading platform, Hong Kong Virtual Asset Exchange signed a memorandum of understanding with a Portuguese sustainable ocean management organisation, Fórum Oceano, and Yacooba Labs, a Portuguese blockchain service company, to facilitate blue economy security token offerings, signalling another avenue for investment in the space.
More yellow, less red
Although Singapore is an island nation, it has been slow to recognise or invest in the blue economy.
The Singapore Green Plan 2030 notably concentrates primarily on land-based solutions to climate change, with limited attention given to marine and coastal initiatives.
This could be due to the vast majority of Singapore’s marine and coastal areas being allocated to commercial activities, alongside non-industrial uses such as residential development and recreational pursuits.
The country is also largely not reliant on its surrounding waters for produce, with a 2021 report from the Singapore Food Agency noting that over 90% of the nation’s food comes via import.
Despite this, individuals across Singapore have shown sparks of marine conservation activism.
Malika Meghjani, assistant professor at the computer science and design pillar with the Singapore University of Technology Design, directs the Multi-Agent Robot Vision and Learning lab (MARVL), utilising multiple surface and underwater robots to search and monitor marine environments.
Tasks such as documenting coral reefs through photos to monitor health and assess biodiversity can be manpower-intensive, with Singapore’s poor water visibility posing an even greater challenge to marine biologists seeking to document and monitor the coral reefs.
MARVL’s marine robots offer a crucial solution to this challenge. Equipped with AI-driven software, they can execute operations with consistency and regularity, while enhancing visual data through advanced algorithms.
Speaking at the Ocean Collective Summit 2024, Meghjani says that MARVL has acquired funding through applying for grants with the Ministry of Trade and Industry’s Agency for Science, Technology and Research (A-Star), and she actively works with the National University of Singapore’s (NUS) Tropical Marine Science Institute, the Port Singapore Authority and AI Singapore.
She adds: “I’m very thrilled that the government invests in the research funds; I haven’t seen any other country where the government invests for a five-year term. Even if there are changes politically, the funds actually remain in place.”
Meanwhile, entrepreneur Abery Chan is the founder of Rebiodive, a company dedicated to incorporating chemical recycling technologies with biodegradable additives to produce recycled and biodegradable wetsuits.
As an undergraduate majoring in environmental studies at Yale-NUS College, she combines her academic background with her interest in fashion.
“I was always thinking, what is the best way for people to connect with sustainability? And I felt that fashion or clothing is just something that all of us wear, that we can relate to. So it’s been a journey of six years exploring this intersection,” says Chan.
As an avid scuba diver, she noted that while many of the wetsuits and swimwear on the market were made of recycled materials, they were not biodegradable due to materials such as polyester and nylon. According to Chan, these microfibers shed into the ocean, lasting for around 1,000 years and causing harm to the marine ecosystem.
To combat this challenge, she started Rebiodive with the intention of creating swimwear with an accelerated biodegradable process of just four years. Chan aims to provide an alternative option for swimwear brands, allowing them to switch to a more sustainable fabric and enable the green transition of their supply chain.
She says: “I think my priority is to definitely get the prototype out, because there are smaller manufacturers that make these fabrics. The focus is really on making a product that manufacturers would be excited to partner with, and from there, just building good partnerships with them to scale production.”
As at 2024, the UN’s sustainable development report noted Singapore’s progress in achieving SDG14 with two markers: a red dot signifying that “major challenges remain”, and a yellow arrow pointed up at a 45-degree angle, representing an improvement of “moderately increasing” activity.
Until more local businesses identify the benefits of investing in the blue economy and marine conservation, Singapore looks to stay red. Thankfully, people like Meghjani and Chan are doing their bit to shift the tide.
