Sustainable Blue Economy: Investing for a sustainable ocean economy

Protecting the oceans and building a diverse, resilient and environmentally sustainable marine economy are the focus of the Sustainable Blue Economy. The FERI Cognitive Finance Institute, together with the GEOMAR Helmholtz Centre for Ocean Research Kiel and the FRAUNHOFER Institute for Computer Graphics Research IGD, has now summarized the most important strategies for a sustainable economic use of the world's oceans. The study, entitled "Sustainable Blue Economy - Transformation, Value and Potential of Marine Economic and Ecosystems," presents current scientific findings and highlights potential areas of investment and innovative technologies that could revolutionize shipping, marine infrastructure, marine renewable energy generation, and marine and coastal protection. "In the context of an innovative 'Sustainable Blue Economy', new approaches for a more sustainable and at the same time more efficient use of natural marine resources are currently developing with great momentum. Professional investors should specifically seize the strategic opportunities that accompany these changes," says Dr. Heinz-Werner Rapp, founder and director of the FERI Cognitive Finance Institute.

The ocean as a driver of the global climate system

One of the key findings of today's research, he said, is that the ocean plays an essential role in the global energy and carbon cycle. The marine ecosystem makes an important contribution to food security, ocean currents control planetary heat exchange, and the ocean absorbs 90 percent of global warming and 30 percent of all greenhouse gases, he said. "The ocean is the largest influencer and driver of the global climate system. Through interactions between air and water, it directly influences weather and climate in our atmosphere. A balanced marine ecology is the basic prerequisite for life on Earth and the basis for many ecosystem services for the benefit of humanity," explains Prof. Dr. Martin Visbeck, head of the Physical Oceanography research unit at GEOMAR Helmholtz Centre for Ocean Research Kiel and co-author of the study.

Technological innovations in the service of sustainability

According to experts, artificial intelligence, big data, blockchain and complex digital platforms are likely to make an important contribution to the environmentally compatible transformation of ocean shipping and marine infrastructure in the future. Possible applications include monitoring ship routes, analyzing wind and wave strengths, and tracking schools of fish. Digitalized ports, such as the 100 percent electric Yangshan Deepwater Port in Shanghai, are also examples of attractive marine investment projects of the future, he said. "Digitization and the use of digital technologies within the maritime industry offer enormous scaling potential in both economic and environmental terms," explains Dr. Steffen Knodt, head of Sustainable Ocean Business, Fraunhofer Institute IGD, and co-author of the study.

Diverse investment opportunities

For the transformation to a sustainable ocean economy to succeed, the Sustainable Blue Economy must be promoted much more strongly. In the future, the focus must be more on economic activities based on the circular economy, cooperation, resilience, opportunities and positive interdependence. A key role in this, he said, is played by the global finance industry. Long-term financing of large ocean-based infrastructure projects and massive structural changes in fisheries and marine logistics required economic incentives and new regulatory foundations for investors, he said. The Sustainable Blue Economy Finance Principles developed in 2021 already provide a global framework for banks, insurers and asset managers to do this, he said. "Ocean-based infrastructure projects that meet both the long-term return expectations and risk profile of large institutional investors, such as those in alternative energy generation, offer particular opportunities in this regard," he said. The debt financing of these infrastructure projects can be covered by blue bonds, which enable structured and highly targeted impact investment due to their transparent project focus," said Antje Biber, head of SDG Office, FERI AG.

The study "Sustainable Blue Economy - Transformation, Value and Potential of Marine Economic and Ecosystems" can be found in the download area.