Climate’s Catch-22: Ocean’s health = people’s wealth

We can’t have a healthy planet without a healthy ocean. That is why sustainable finance for the sustainable blue economy is of vital importance to us all.

Dive Deeper
Economist Impact – World Ocean Initiative

A guest blog by Chris Gorell Barnes, founding partner, Ocean 14 Capital

On Jane Fraser’s first day as chief executive officer at Citigroup, she announced plans to achieve net-zero greenhouse-gas emissions in the bank’s financing activities by 2050. Finance has finally caught up to climate’s threat to the stability of the financial system.

Yet despite the fact that the oceans cover some 71% of the planet, produce at least 50% of the oxygen, and are the main source of protein for more than 1bn people, few leaders seem to have grasped the fact that climate and oceans are inextricably linked.

Speaking at the Sustainable Finance Forum in Abu Dhabi, Peter Thomson, the UN Secretary-General’s Special Envoy for the Ocean, said: “We can’t have a healthy planet without a healthy ocean. That is why sustainable finance for the sustainable blue economy is of vital importance to us all.”

Significant value

Statistics from the 2015 report “Reviving the Ocean Economy: The Case for Action” make the most powerful case. The value of the ocean’s asset base is US$24trn, while the annual value of goods and services produced from ocean-related economic activities is US$2.5trn, which makes the ocean equivalent to the seventh largest economy globally. It is estimated that by 2030, 40m people will be employed in ocean-based industries.

Just as there is significant value in the ocean economy, threats to the ocean’s resources through overexploitation, misuse, pollution, loss of biodiversity and climate change lead to significant costs. A World Bank report estimates that profits forgone from overfishing amount to US$83bn annually, while ocean plastic pollution costs society up to US$2.5trn a year.

In addition, a 600-page landmark review commissioned by the UK Treasury, “The Economics of Biodiversity”, has highlighted the extreme risks posed by the failure to take account of the rapid depletion of the natural world.

At the World Ocean Summit in March one concept stood out: global warming has weakened the Gulf Stream system to the slowest pace in more than a thousand years. This is a stark reminder of the crucial link between the ocean and climate change. Is this a tipping point, or have we already passed the point of irreversible damage?

I believe there are signs of hope.

To read the full blog and find out why Chris Gorell Barnes sees signs of hope, click here.

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“This investment will enable Ocean 14 Capital to deliver the innovation needed to meet our climate and sustainability goals. The sustainable blue economy is now a key focus for us and this is a rallying cry for start-up and scale-up marine innovators globally to come forward and help avert the crisis in our oceans and return them to a healthy thriving state.”

Jean Castellini Minister of Finance and Economy of Monaco

“There has never been a more important time to invest in the oceans as a critical way to protect our planet and combat climate change. I am excited to back Ocean 14 Capital and their vision to make a significant positive impact in the blue economy.”

Niklas Zennström

“Builders Vision Fund is excited to be part of Ocean Capital Fund I’s first close. Builders is committed to developing the ecosystem of businesses focused on ocean health and sustainability. We believe the team at Ocean14 Capital have the drive and commitment to lead this impact-focused growth fund for oceans to meaningful market investments that can improve the health of our oceans.”

Peter Bryant Senior Program Officer, Builders Initiative

“Impact investments are an important part of Chr. Augustinus Fabrikker’s investment strategy and with the investment in Ocean 14 Capital Fund I we will total ten impact investments. Our interest in Ocean 14 Capital stems from the importance we see in ensuring sustainable business practices in the ocean to foster future prosperity for this vital part of our ecosystem alongside the unique capabilities we have identified within the team. For this reason, we are delighted to become a cornerstone investor in this exciting venture.”

Claus Gregersen Chief Executive Officer, Chr. Augustinus Fabrikker

“In line with SDG14, our key objective through the Flourishing Ocean’s initiative is to return our ocean to a healthy thriving state. To facilitate this, we are committed to ending overfishing; ending the dumping of plastic, heat and CO2 in our ocean; supporting the sustainable use of ocean resources; conserving key habitats; and facilitating world class research. This is why we are supporting a new venture where the Ocean 14 Capital Fund will invest in projects aligned to our objectives.”

Dr. Tony Worby Chief Executive Officer, Minderoo Foundation’s Flourishing Ocean