The ocean economy is on a winning streak—sort of. Trade and innovation have fueled its rise, with marine industries swelling to 2.5 times their 1995 size. In 2023 alone, ocean goods hit a record $899 billion, and services topped $1.3 trillion. That’s a lot of seafood, tourism, and container ships. Yet, for all its growth, the sector faces an existential crisis. Climate change, weak governance, and financial neglect are pulling the rug out from under it, says UNCTAD.
It’s an industry that feeds 600 million people and powers coastal and island economies, yet it remains one of the most underfunded, underregulated, and overlooked sectors. And if leaders don’t act fast, the blue economy could turn into a black hole.
CLIMATE CHANGE: THE OCEAN ECONOMY’S MOST RUTHLESS PREDATOR
2024 broke global temperature records, pushing ocean waters into a slow-boil crisis. With temperatures 1.55°C above pre-industrial levels, marine ecosystems are crumbling, fish stocks are shrinking, and coastal communities are facing food insecurity. Meanwhile, rising sea levels and extreme weather are throwing maritime trade into chaos, delaying shipments and driving up insurance costs.
Shipping alone accounts for 2.9% of global emissions, yet decarbonization efforts remain a logistical nightmare. Industry leaders need between $8 billion and $28 billion annually to clean up their act—and that’s just for reducing emissions. Tack on $90 billion in infrastructure upgrades, and suddenly, the world’s cargo carriers are looking a little seasick.
Despite these looming threats, national climate plans continue to treat the ocean like an afterthought. Unless policymakers wake up, the ocean economy could sink under its own weight.
DATA DEFICIT: MAKING POLICY IN THE DARK
The ocean economy generates 11% of global CO2 emissions. While fisheries and shipping have some oversight, other industries—ports, shipbuilding, and offshore drilling—are left out of global emissions assessments.
Coastal and marine tourism, for instance, accounts for 4% of global emissions, yet official records are riddled with gaps. Without proper data, policymakers are essentially guessing their way through ocean sustainability. Expanding datasets like the UNCTAD Ocean Trade Database could bring much-needed clarity, but will global leaders prioritize it? Don’t hold your breath.
TRADE BARRIERS: CHOKING THE BLUE ECONOMY
South-South trade in fisheries is booming, but unnecessary tariffs are keeping it on a short leash. Developing nations slap an average 14% tariff on fish products among themselves—compared to a cushy 3.2% in high-income countries. That’s a self-inflicted wound for economies that rely heavily on marine trade.
Meanwhile, sustainable alternatives to plastic, like seaweed-based products, struggle to gain traction. In 2022, global exports of marine-based non-plastic substitutes barely hit $10.8 billion—just 1% of plastic exports. Outdated regulations, excessive tariffs, and trade barriers are blocking a market that could revolutionize marine sustainability. If the UN’s plastic pollution treaty finally delivers, it might just be the lifeline the industry needs.
STARVING A BILLION-DOLLAR INDUSTRY: THE INVESTMENT GAP
Despite its trillion-dollar footprint, the ocean economy receives pitiful financial backing. In 2022, ocean-related financing amounted to less than $3 billion—barely a drop in the bucket.
To achieve Sustainable Development Goal 14 (Life Below Water), we need $175 billion annually. Since 2010, only $30 billion has been disbursed, making it the most neglected SDG on record. Meanwhile, the global fishing industry receives $22 billion in harmful subsidies each year—fueling overfishing instead of sustainability. If even a fraction of that money were redirected, the funding gap could be closed.
WHAT NEEDS TO CHANGE—AND FAST
The ocean economy is at a crossroads. To avoid collapse, five urgent steps are needed:
- Integrate ocean-based industries into climate and biodiversity plans. Climate adaptation should include marine sectors, not just land-based solutions.
- Finalize the legally binding treaty on plastic pollution. Cutting plastic waste and expanding marine-based materials is non-negotiable.
- Reduce trade barriers on sustainable marine products. Lowering tariffs and updating regulations will boost South-South trade and innovation.
- Expand data collection on ocean-related emissions and investments. Without proper tracking, meaningful change is impossible.
- End harmful subsidies and ramp up financing. Redirecting funds toward sustainable solutions is the only way forward.
With the 5th UN Ocean Forum in March and the 2025 UN Ocean Conference on the horizon, the time for action is now. The question is: will policymakers act, or will they let the ocean economy drown in neglect?
