01 August, 2023 London: The Ocean 14 Capital Fund, which is working to clean up and revitalise the world’s oceans, has received a €20 million investment from institutional corporate investor, Convex Group Limited (“Convex”), taking it past its €150 million funding goal. The Luxembourg-based fund, which also received €10 million from family offices and HNWs, now aims to reach €200 million by the end of 2023.

The investment from Convex means that the Ocean 14 Capital Fund has now raised €160 million from investors including Monaco’s sovereign wealth fund, European Investment Fund (EIF), and Niklas Zennström, the founder of Skype and €30 million from the investment arm of Ingka Group.

Chris Gorell Barnes, co-founder of Ocean 14 Capital, believes the Fund is well on track to grow its portfolio to between 20 and 25 businesses within three years, having invested in five companies to date, including SyAqua, a shrimp-breeding technology specialist, and AION, a plastics management platform based in Norway.

The Ocean 14 Capital Fund has also committed €10 million to Brazil-based Tilabras, a leading producer of tilapia, one of the world’s most sustainable sources of animal protein. More recently, the Fund announced an investment of €11 million in land-based Dutch yellowtail producer The Kingfish Company.

Most recently, the Ocean 14 Capital Fund has signed an investment of up to €10 million in Ava Ocean, a Norwegian technology and seafood company which is on a mission to change the way we harvest seafood from the seabed, whilst protecting fragile ocean habitats and invaluable carbon sinks.

Dredging is the most widely used method to harvest bottom dwelling seafoods globally, but this way of fishing takes a significant toll on the seabed and surrounding ecosystems and is increasingly facing criticism from environmental campaigners and ocean conservationists.

In Norway, dredging has been banned for nearly 30 years, preserving ocean habitats, but leaving vast nutritious resources out of reach.

Ava Ocean has developed a unique, non-invasive harvesting gear for bottom-dwelling seafood such as scallops and sea cucumber without disturbing marine ecosystems. The technology combines an advanced water-flow system with AI and camera technology to precision-pick target seafood. Smaller sized specimens or bycatch are returned to the seabed undamaged.

After extensive trials together with the Norwegian Institute for Marine Research, the Norwegian government granted Ava Ocean the first licence to harvest Arctic Scallops in the Barents Sea in more than three decades.

Norselab, an Oslo-based investment manager focusing on impact through industrial transformation, has taken Ava Ocean through the critical phase of commercialising its research and technology, proving that the solution is fully operational and profitable. Today, based on a single quota of arctic scallops, the company makes solid positive margins with its harvesting method.

With the injection of capital from the Ocean14 Capital Fund, Ava Ocean will embark on an ambitious international growth plan, accelerating their mission to lead a global shift towards more sustainable fisheries of bottom-dwelling seafoods.

Gorell Barnes commented: “The fact that the Fund has surpassed its initial goal of €150 million shows how important this issue has become to so many people globally and how highly the Fund is thought of.

“We believe that the Fund’s strategic investment in Ava Ocean is significant. The global export market for scallops is worth an estimated $2.5 billion, but most of the scallop fishing industry uses dredging methods which have a devastating effect on seabed ecosystems and biodiversity. The technology developed by Ava Ocean can be rolled out on a global scale and could put an end to harmful seabed practice forever.

“Over the next few years, the Fund aims to invest in many more companies that are all playing a part in saving the oceans. We want the blue economy to become mainstream as ocean health has a direct positive impact for consumers and commerce globally. The Fund is now aiming for investment of €200 million and as its advisers, we are confident that target will be met in the coming months”.

Benji Meuli, Chief Investment Officer, Convex, said: “The insurance industry can play a tangible role in the future of our planet and Convex sees investing in a sustainable blue economy as vital in our fight against the climate crisis. Ocean 14 Capital Fund’s commitment to strategically supporting businesses and initiatives will drive the kind of change that will bring about a brighter, cleaner future for our oceans and the communities they sustain”.

Øystein Tvedt, CEO, Ava Ocean, said: “With the Ocean14 Capital Fund onboard, we can embark on the next chapter in Ava Ocean’s journey to reinvent seabed harvesting. The global potential for our solution is immense, and we are excited to be able to explore international opportunities with the support of the Ocean14 Capital Fund. They share our unwavering belief in bringing about real change through innovation and collaboration, and with their expertise in the global blue economy bring invaluable know-how ahead of this next phase for Ava Ocean. With the support of the Ocean 14 Capital Fund, along with our existing investors, we are well-positioned to scale our operations for international growth and to further develop our innovative solution.

Maria de Perlinghi, Partner and Chief Impact Officer at Norselab, added: “Ava Ocean offers a commercially scalable solution to multiple stressors the ocean is subject to, which has far-reaching consequences for our climate, biodiversity, human health, and livelihoods. It’s a real alternative to the destructive catching practices currently deployed in most countries globally. We believe Ava Ocean can generate system-level impact in the seafood industry”.

Francisco Saraiva Gomes, Founding Partner and CIO, concluded: “We are thrilled with our first investment in fisheries. Ava shows the path for sustainable industrial fisheries, where technology enables, and business model captures, the convergence between both impact and financial gains. Our ocean needs us to eliminate predatory fishing activities quickly. Companies like Ava are the economically efficient answer how precision fisheries will enable the ban of bottom trawling”.

The Ocean 14 Capital Fund aims to act as a tidal surge to supercharge the blue economy, a sector using ocean resources for economic growth and preservation, which is expected to be worth $3 trillion by 2030, according to the OECD.

Ocean 14 Capital Limited is an appointed representative of G10 Capital Limited which is authorised and regulated by the Financial Conduct Authority.

-ends-

Notes to editors

About Ocean 14 Capital Fund I SCSp

Ocean 14 Capital Fund I SCSp (“Ocean 14 Capital Fund” or the “Fund”) is an impact fund now targeting €200 million and focused on driving a sustainable and regenerative blue economy. The fund’s investment adviser, Ocean 14 Capital Ltd, has a team who combine more than 65 years of investment, impact, and industry experience. The investment adviser’s team and advisers are considered to be some of the world’s most renowned scientists and marine biologists, and it is considered that they have unparalleled access to proprietary deal flow and sector knowledge.

For more information www.ocean14capital.com and follow us on Linked In

About Convex

Convex Group is an international specialty insurer and reinsurer focused on complex specialty risks across a diverse range of business lines. The company brings together best in class talent, a diversity of thought and the freedom and independence of a strong balance sheet to create a fresh approach to business.

The Group’s ambition is to offer something different to its clients and to engage with them in a true partnership based on fairness, dignity and respect.

Convex was founded by Stephen Catlin and Paul Brand and operates out of London, Bermuda, Luxembourg and New Jersey. The company has an “A“(Excellent) A.M. Best rating and an “A-“ with stable outlook S&P rating.

About Ava Ocean

Ava Ocean is an ocean technology and seafood company pioneering new ways of harvesting the abundant seafood resources on the seabed, in a gentle, yet effective manner.

Ava Ocean has developed a revolutionary technology for non-invasive, precision seabed harvesting that not only preserves, but can also help to restore fragile and often overlooked ecosystems on the bottom of the sea.

The company’s first fishing vessel, the Arctic Pearl, is the world’s first with this technology onboard. Thanks to the harvesters’ documented low impact, in December 2022 the Arctic Pearl was able to reopen the fishery of Arctic scallops in the Barents Sea after 30 years of closure.

Ava Ocean, previously operating under the name of TAU Tech, was established in 2016 and is based in Aalesund, Norway.

For more information, visit us on www.avaocean.no or LinkedIn.

25 August 2022, London. Ocean 14 Capital, a private equity company focused on the United Nations’ Sustainable Development Goal 14 (SDG 14): Life Below Water, has entered into an agreement to invest in MITO S.r.L (“MITO”) a leader in the breeding and hatching of clams. The Fund will be making an initial investment of €2.8 million.

MITO, created through the O14C transaction, is the consolidation of clam hatchery and nurseries in Italy and the Netherlands. The company is co-founded by Gianluigi Lago, Paola Landri and Maurizio Varagnolo, industry veterans with deep expertise in breeding and farming of Veneridae clams. MITO, resulting from the merger of Societá Agricola Ecotapes Italia S.r.L, Delta Futuro Societá Agricola S.r.L, and Ecotapes Zeeland B.V., initiates operations producing more than 300 million clam seed juveniles ready for stocking for the Italian market.

MITO integrates bio-secure hatchery operations in the Netherlands with local nursery centres in the core Italian market and, supported by Ocean 14 Capital Fund, has an ambitious growth plan to increase its operational capacity to 2 billion of seeds annually over the next few years. The Ocean 14 Capital Fund plans to invest an additional €5 million investment to scale and grow the business further, as part of its European bivalves strategy, creating another scalable, regenerative and sustainable protein platform within the Blue Economy.

“It is incredibly exciting to begin this journey with MITO – benefiting from and simultaneously accelerating the great and highly impactful work that Gianluigi, Paola and Maurizio have developed for years” said Katherine Elbert, Investment Analyst and co-Investment Lead for MITO at Ocean 14 Capital, the Fund’s investment advisor. “We couldn’t have arranged a better starting investment for the Fund’s European bivalves strategy. Similar to what happened to oysters, a strong supply of viable hatchery seed is key for the sustainable development of the industry,” she added.

“O14C has been a great partner for us and we are very excited about the opportunity our partnership will capture,” says Gianluigi Lago, MITO’s Chief Operating Officer. “With their investment and support, MITO will soon lead the supply of hatchery clam seed in Europe,” added Lago.

Ocean 14 Capital’s strategy for the European bivalve industry aims to bring capital, technology and best-practices to this often-overlooked sector of the European coastal economies. “With a total aquaculture production of more than 30,000 tonnes1, the clam industry in Europe is one of the best opportunities for the Fund to invest in. It shows well who the Fund is as O14C, and its purpose,” says Francisco Saraiva Gomes, Founding Partner and Chief Investment Officer of the company. “It’s a great protein, with a superior production system, highly leverageable through technology and convergent with coastal conservation, of which we know a lot, and where we are able to develop superior partnerships with the industry leaders. It’s a great impact growth thesis: the team is fantastic, we’re building at book value, and MITO’s sales are overbooked,” he added.

MITO is a high impact investment case for Ocean 14 Capital. Alongside nutritional benefits, clams are an exceptionally efficient, low impact protein. As filter feeders growing in the sediment of natural lagoons, clams require no feed, fresh water or antibiotics, and almost no physical infrastructure. As a result, clams produce less than 2kg of CO2 per 100g of protein, versus the European average of 13kg per 100g of animal protein, and 50kg per 100g of beef protein2.

In recent years, the European production of clams has declined due to lack of wildly sourced seed, as well as the abiotic stress and disease, resulting in a spat mortality rate of over 50%3. MITO supplies high quality clam juveniles that increase the production of low-impact and low-carbon protein by increasing the availability of clam seed, displacing farmer’s dependency on wildly sourced stocks, while simultaneously decreasing their mortality in grow-out and protecting the environment within the lagoon, which take pressure off the heavily overfished wild clam populations.

1 FAO: Global Aquaculture Production Quantity (1950 – 2020) for Ruditapes philippinarum and Venerupis decussatus

2 Internal analysis based on Kyung-Il Park et al. 2012, LCA of Scottish Mussels and Oysters, NZ LCA of Mussels and Clam, and Nemecek and Poore (2018)

3 EIT Food: Delta Futuro: Shellfish Juvenile Sustainable Production Model

What’s happening? The UK is set to become the first country to create a complete map of its stores of blue carbon through an initiative led by the Scottish Association for Marine Science and funded by WWF-UK. The project will build upon blue carbon mapping which started in Scotland to cover the Irish Sea and English Channel. Initial findings will be released later this year, with a final report set to follow in summer 2023. Mapping the country’s blue carbon habitats will allow governments to plan and prioritise the use of marine environments. (The Independent)

Why does this matter? Even though over two-thirds of the UK is underwater when its continental shelf is considered, knowledge around its blue carbon sequestration capacity (along with that in other countries) is still limited, with most carbon accounting previously targeting terrestrial habitats. Understanding the distribution and extent of blue carbon stores will provide knowledge that can support conservation measures and climate resilience. It could more broadly support the UK’s progress toward achieving its net-zero targets. A diverse range of marine habitats can be found in the UK’s seas including seagrass beds, kelp forests, saltmarsh, biogenic reefs and marine sediments. An initial pilot study of the North Sea last year by WWF estimated the superficial top 10 cm of English North Sea seabed sediments store 100.4 million mt of CO2, the equivalent of around 20% of the stocks sequestered in UK forests and woodlands. However, since seabed sediments can be hundreds of metres in depth, the 10 cm figure should be viewed as a significant underestimate of the total organic carbon sequestered in the seabed. Another key finding of the pilot study is that 98% of total organic carbon is stored in sand and mud, among other seabed sediments, making these the most important areas for blue carbon sequestration in the region. Given there is no sufficient restoration solution for these sediments, preservation efforts and managing activities to minimise disruption to them are key. This is important as areas with the highest carbon stock density, including the Devil’s Hole region toward the north of the study area, lie outside marine protection area (MPA) designation. The researchers estimated 1.2 million mt of organic CO2 is added each year to ocean sediments, but it is still unknown how much of this is sequestered in the long-term due to multiple disturbances to the seabed. Physical disturbances caused by fishing practices, offshore energy infrastructure installations, aggregate dredging and other activities are the main pressures faced by organic carbon stores across nearly all English MPAs. The UK has lost over 90% of its carbon-storing seagrass over the last two centuries, with nearly 50% of the losses predicted to have occurred in the last 30 years. A separate study exploring the climate impacts of global bottom trawling found trawling alone causes around one billion mt of CO2 every year to be released from the seabed – the equivalent of the total emissions produced by the aviation industry annually. Additionally, there are other benefits to stopping such disruptive ocean practices. Implementing protection measures to target 45% of the ocean has potential to preserve 70% of all biodiversity. Banning fishing from certain areas could also boost global fish yields by up to eight million mt. Climate change impacts such as ocean acidification result in mixed effects on blue carbon capture and sequestration. While photosynthetic organisms such as macroalgae or kelp could potentially benefit from higher CO2 concentrations, other marine species and habitats such as carbonate sediments and carbonaceous organisms including coral and molluscs will be negatively impacted as they find it more difficult to grow shells and exoskeletons. Findings from the blue carbon mapping study will provide important baseline knowledge to support policymaking and build a case for identifying and stewarding blue carbon-rich habitats in the ocean. Other independent efforts to calculate the carbon stored in the world’s seabeds are underway, such as the five-year research partnership between the Blue Marine Foundation and insurer Convex Group to establish an open-access database for global blue carbon storage.

Source: Independent

What’s happening? Whales react to human-caused noise pollution, including from military sonar systems, similarly to how they respond to the sounds of predators, according to a University of St Andrews-led study. The analysis focused on four whale species. It found that noise pollution caused the whales to stop feeding, potentially weakening them and leaving them more vulnerable to predation. The more a whale was exposed to sonar sounds, the less it foraged.

Why does this matter? Underwater noise pollution is growing with increased human activity in the ocean, whether that is related to shipping and fishing vessels, clean energy infrastructure, fossil fuel projects or naval sonar systems. Identifying the marine species that are at risk from noise disruption can play a key role in finding ways to mitigate the issue, particularly given there is currently no binding international standard to regulate noise pollution in the ocean. The above study centered its exploration on long-finned pilot whales, northern bottlenose whales, humpback whales and sperm whales. Cetaceans – aquatic mammals such as whales, dolphins and porpoises – are particularly vulnerable to human noise pollution as their hearing abilities can result in them misidentifying these sounds as representing danger, such as from a predator. Ocean noise pollution also disturbs the “blue corridors” used by whales for seasonal migration, a separate report from WWF found earlier this year. On a broader level, human behaviour could also be causing endangered North Atlantic right whales to become smaller while limiting their ability to reproduce. Contributing factors include shifting food availability, collisions with other ships and noise pollution. Wastewater released from exhaust-cleaning scrubbers on ships that use an open-loop system pumping water and contaminants into the ocean can also harm orca whale populations, according to another WWF-funded study. The researchers were particularly concerned about marine mammals in the Arctic, such as Arctic seals, which are already vulnerable to climate impacts including reduced ice cover which normally offers protection. Human-caused underwater noise can cause seal populations to stop feeding forays earlier than normal and become easier targets for predators. Some efforts have been made to mitigate the issue. In March, the Port of Seattle announced it would invest in technologies to minimise underwater noise for its marine life, which includes the endangered Southern Resident killer whales. For instance, a pilot implemented a double wall piling system which is designed to cut noise travelling in water. Elsewhere, collaboration between the General Fisheries Commission for the Mediterranean and OceanCare is aiming to address noise pollution among other threats to marine species. Small measures to alter ship design can help – regular propeller maintenance and polishing can curb cavitation bubbles which generate noise. Slowing down the speed at which vessels travel can also minimise noise by up to 50% if speeds are reduced by 10% to 20%.

The University of St Andrew’s study’s authors also add that firms must scale up efforts to document information such as where and when their vessels generate underwater noise. Records such as this could better inform authorities monitoring the ocean on how they can reduce noises or plan mitigation strategies to curb the impact on marine species.

Sources:

PNAS

Mongabay

13 June 2022, London. Ocean 14 Capital Fund, a private equity impact investment fund focused on the United Nations’ Sustainable Development Goal 14 (SDG 14): Life Below Water, has signed a deal to purchase a controlling stake in SyAqua from Golden Springs Group (GSG). SyAqua is a leader in genetics and early nutrition to the shrimp hatchery market, with a historical focus in Asia.

Ocean 14 Capital Fund’s debut investment capitalises on the intensification and sustainability trends in the shrimp farming industry. Despite significant progress in the recent past, the industry is still overshadowed by inefficient resource use of unsustainable practices. “SyAqua‘s technologies in genetics and nutrition have a powerful impact on sustainable intensification of the shrimp industry by reducing waste per unit of production and the ensuing externalities, says George Duffield, founding partner and chair of impact, for the Fund’s investment adviser, Ocean 14 Capital Ltd.

“We have ambitious plans for SyAqua and are tremendously happy for the Fund to be partnering up with Golden Springs Group and the SyAqua company’s management team,” said Francisco Saraiva Gomes, founding partner and chief investment officer, Ocean 14 Capital Ltd. “SyAqua is in growth mode, quickly increasing its performance by leveraging its superior market presence and tech platforms. Over time we plan to build SyAqua into a platform for sustainable shrimp technologies and we hope that the Fund will invest significantly more than its initial commitment of $12 million”.

“We are excited to be partnering with Ocean 14 Capital. They have already shown an incredible commitment to our team and business. Their knowledge, access and ability to execute, will help us to capture multiple growth opportunities. It’s a good period for SyAqua now. We are on growth mode we are already expanding our operational footprint and technology portfolio to better serve the needs of our customers” says Ricardo Mello, chief executive officer, SyAqua.

“It is with great enthusiasm and expectations that we witness Ocean 14 Capital’s first investment, as part of one of their key investment verticals to transform the shrimp industry into a more sustainable business. We are delighted to be a cornerstone investor of this vital and innovative fund,” says Claus Gregersen, CEO, Chr Augustinus Fabrikker.

SyAqua

SyAqua provides solutions for shrimp hatcheries and farmers, combining genetics and early-stage nutrition. The Company uses cutting-edge technologies in its breeding program and hatchery feeds manufacturing process to ensure its customers excel in technical and economic performance. SyAqua has operations in USA, Thailand, Indonesia and Malaysia with relevant commercial presence in several shrimp producing countries worldwide.

www.syaqua.com

Golden Springs Group

Golden Springs Group operates as an investment company. The company invests in sustainable aquaculture businesses.

www.goldenspringsgroup.com

Chr. Augustinus Fabrikker

Chr. Augustinus Fabrikker is the investment subsidiary of the Augustinus Foundation one the largest cultural foundations in Denmark. With assets of more than DKK 40 billion and more than 270-year-old history, Chr. Augustinus Fabrikker has extensive interests in the Danish business community and a strategy to be a long-term, committed, and value-adding asset owner.

https://augustinusfabrikker.dk/en/

What’s happening? Pharmaceuticals may be contributing to the decline in bonefish numbers in south Florida, according to research from Florida International University. Populations of the fish, which is popular with anglers, have fallen by over 50% over four decades. All 93 bonefish sampled tested positive for one or more pharmaceuticals. Of the fish studied, 56% had levels of pharmaceuticals higher than those at which negative impacts could be anticipated. Drugs were also found in bonefish prey, including shrimp, small fish and crabs. Pharmaceuticals enter the water through manufacturing and rainwater run-off and via livestock and human wastewater.

Why does this matter? Studies on the extent and impacts of pharmaceuticals in water bodies have been focused largely on freshwater environments such as rivers rather than the ocean, in which their effects are relatively unknown. However, this study highlights that widespread pharmaceutical marine pollution is an emerging issue already harming marine life in some regions, which needs to be tackled to minimise further impacts on marine ecosystems and coastal fisheries. Wastewater is transported to the sea from a number of sources including run-off from industrial plants or agricultural land, sewage spills, treated wastewater discharges and misfunctioning septic tanks. Traditional sewage treatment plants can often miss pharmaceutical contamination and fail to remove it due to outdated infrastructure and difficulty in identifying the compounds in water. Bonefish are categorised as near threatened by the International Union for the Conservation of Nature and their populations are declining due to several threats including water contamination, habitat loss and fishing. Around 58 different medications were found in the bonefish studied and their prey, including opioids, antidepressants, heart medications and antifungals. One bonefish tested positive for 17 separate pharmaceuticals – eight of these were antidepressants present in levels over 300 times the human therapeutic level. Researchers suggest pharmaceutical contamination can alter fish throughout all stages of their lifecycle. For instance, drugs such as Valium cause fish to be less active and take more risks, which could increase the likelihood of them being eaten by predators and decrease their overall survival rates. Contaminated water can also hinder the endocrine system and reproductive abilities of marine life. These impacts could be permanent due to the way increased exposure can alter brain chemistry in fish. From an economic perspective, impacts can be costly. South Florida’s flats fisheries are an important part its recreational saltwater industry, which has a yearly economic impact of more than $9bn and supports nearly 90,000 jobs. Florida has struggled with wastewater leaks into waterways in recent years – last year, an old phosphate mining facility Piney Point leaked over 200 million gallons of wastewater containing harmful levels of nutrients into Tampa Bay. In terms of solutions, legislation addressing pharmaceutical pollution in the environment is lagging. In the US, pharmaceutical release into the environment is currently unregulated, meaning there are no limits to quantities that can be released. Other existing initiatives place more emphasis on mitigating impacts to freshwater environments. Alongside regulation, proactive measures can improve wastewater infrastructure on a global scale and remove pharmaceuticals before they contaminate waterways, and negate the need for reactive responses after spills or release. Retrofitting treatment plants with advanced techniques could help. Ozonation – adding ozone into water to eliminate remaining contaminants not detected by traditional wastewater treatment – could curb the concentration levels of harmful compounds by as much as 95%. Activated carbon or biochar can also be used to absorb chemicals from polluted waters.

Other efforts to make the substances “greener” during production stages, such as creating pharmaceuticals with faster breakdown abilities when released into the environment, could further act to minimise impacts.

Sources:

The Guardian

Bonefish & Tarpon Trust

What’s happening? United Nations member states have failed to finalise a treaty on conserving biodiversity in the high seas – the 60% of the world’s oceans that is not covered by any national jurisdiction. A two-week meeting concluded without an agreement in New York on 18 March. The discussions were the fourth round of negotiations since 2018. Talks focused on the creation of marine reserves, environmental impact assessments for potentially harmful activities, the sharing of marine genetic resources and the transfer of marine technology to developing countries. Observers still expect an agreement to be reached by the end of 2022.

Why does this matter? Almost two-thirds of the world’s oceans lie outside of national jurisdictions, also known as Exclusive Economic Zones (EEZ). According to scientists, these international waters account for up to 95% of all occupied habitats on Earth, with millions of species yet to be discovered. However, only 1.2% of the high seas are currently under protection. In the absence of effective governance mechanisms, these ecosystems are facing growing threats from various industrial and illegal activities as well as climate change.

The share of stocks fished at unsustainable levels, for example, has risen from 10% in 1974 to 33% in 2015. At the same time, shipping volumes have increased by 1,600% since 1982, leading to increased noise pollution and higher risks of collisions between large marine species and industrial vessels. Oil and gas explorations, water contamination with plastics and chemicals, and habitat destruction are also threatening marine life in international waters, while emerging activities such as geoengineering and deep-sea mining are expected to put further pressure on sensitive species.

In order to address these problems, experts have called for an international legal framework focused on conserving biodiversity in the oceans. While there are more than 20 high sea governance organisations with varying mandates – covering activities such as whaling, shipping and mining – there is currently no cross-sectoral regulatory authority. In 2017, the UN General Assembly voted in favour of establishing such a legal framework, known as the Biodiversity Beyond National Jurisdictions (BBNJ) treaty or Treaty of the High Seas, which was meant to be developed over four rounds of negotiations.

The proposed framework focuses on four key areas: the equitable sharing of marine genetic resources, the establishment of management tools such as Marine Protected Areas (MPAs), standards for environmental impact assessments of industrial activities, and the transfer of technology and knowledge to developing countries.

Last month, more than 100 countries stressed their ambitions for stronger environmental protection at the One Ocean summit in France, raising hopes for a successful outcome at the fourth and last round of talks. Nevertheless, the UN delegates failed to reach an agreement in New York, which participants blamed on the “glacial pace” of negotiations. Some countries, including Russia and Iceland, have been accused of deliberately prolonging the talks and seeking to water down environmental protections by excluding fishing from the agreement – even though healthy ecosystems are proven to benefit commercial fish stocks. A 2018 study found that fully protected MPAs, for instance, host 670% more fish biomass than unprotected areas and can also boost fish stock outside of their boundaries through the migration of adult fish and the dispersal of larvae.

To advance the negotiations for the BBJN treaty, the UN General Assembly has to approve additional rounds of talks, but experts are worried time is running out to reach an agreement in time for another critical environmental initiative: the international “30×30” pledge aimed at protecting 30% of the world’s oceans by the end of the decade. Without the BBNJ framework, establishing MPAs in international waters would be legally challenging, which means that countries signing up to the pledge at the forthcoming Biodiversity Summit in China in May would have to create MPAs in their national jurisdictions. To reach the 30% target, this would require an area almost as large as all EEZs combined.

Source: Bloomberg

What’s happening? The EU4Algae platform has been launched by the European Commission, the European Climate, Infrastructure and Environment Executive Agency and a consortium of industry organisations to support Europe’s algae sector. The platform aims to promote the use of algae for nutrition and other uses to EU consumers and businesses over a three-year period, including as a sustainable feedstock for biodegradable plastics. The platform will facilitate collaboration between algae producers, buyers, sellers and consumers, along with investors, researchers and authorities.

Why does this matter? Progress towards a large-scale algae industry across Europe has not been as fast compared to other areas which have dominated production and consumption, such as Asia. The EU4Algae platform aims to aid efforts to expand the region’s algae sector, to play a bigger role in the EU’s blue economy. The platform will act as a hub for accessible information around algae projects, funding calls, best industry practice and intelligence for all stakeholders, and will be available online by summer this year. By the end of 2022, the Commission will also launch an EU Algae initiative and action plan to support it. Aside from its nutritional value, algae has been lauded for the natural ecosystem services it provides, such as climate change mitigation through carbon absorption, as well as its potential for alternative products when harvested including livestock feed and biofuels. Another use case gaining interest is biodegradable packaging, which could play a larger role in replacing conventional plastics amid increasing regulations to curb plastic pollution. The European algae industry has traditionally relied on the harvesting of wild seaweed stocks, which has natural limits for sustainable extraction. The sector will need to upscale in a sustainable way to ensure long-term stability, which will require integrating regenerative practices that are climate-resilient and climate-friendly into production. Given Europe is one of the biggest global importers of seaweed products in relation to value, there are opportunities for investment in production for both the public and private sector here. According to a report by coalition group Seaweed for Europe, the industry has the potential to be worth up to €9.3bn ($10bn) by 2030 and generate around 85,000 jobs. Despite opportunities for expansion, the sector has largely remained restricted due to several barriersincluding a fractured value chain and the absence of adequate knowledge around the potential of algae and seaweed among decision-makers, which has limited investment to date. Other regions are exploring investment in the sector. Last year the Australian government granted AUS59m ($43m) toward a range of seaweed-related research projects. Elsewhere, a consortium of firms including Eneos and Honda are also aiming to establish a large-scale, economically viable microalgae farm facility in Malaysia. The facility will span five hectares and produce approximately 140,000 mt of microalgae which will be used in food, consumer goods products and biofuels. There can be some downsides of large-scale algae production, however. Potential disadvantages from farmed seaweed include the risk of altering the genetic diversity of wild seaweed stocks and impacts associated with monoculture if one species is chosen to be intensively farmed. Other concerns with increasing production include noise pollution caused by harvesting methods, which could disrupt other marine life, and reduced light and shading to some seabed habitats such as seagrass beds.

These factors will need to be carefully managed when growing the industry.

Source:

The Fish Site

What’s happening? UK-based start-up Seafields plans to establish farms in the Atlantic Ocean, growing sargassum seaweed that can be used to capture and sequester CO2. The algae will absorb CO2 during its growth, after which the plant can be harvested, formed into bales and sunk to the bottom of the sea where a portion of the CO2 will be retained. Sargassum’s vigorous growth rate has led to its invasion of large areas of the Caribbean coast. To address this, Seafields aims to build dedicated farms in areas where it would not ordinarily survive to prevent it from becoming an invasive species elsewhere.

Why does this matter? Interest in exploring ocean-based carbon sequestration is growing as an alternative to land-based offsetting projects – such as reforestation – which have historically been more widely recognised in the context of nature-based carbon solutions. The role of the ocean as a natural carbon sink is immense, given it covers around 70% of the Earth’s surface. Some ocean ecosystems have also been proven to be more efficient in carbon sequestration compared to terrestrial forests, with seagrass, salt marshes and coastal mangrove habitats able to store up to 10 timesmore CO2, while large marine organisms also represent as yet unquantified carbon stores. There is also a huge carbon accounting gap on the broader seabed itself.

The High-Level Panel for a Sustainable Ocean Economy states using ocean-based solutions for climate mitigation could reduce the emissions gap – the difference between current emissions pledges and those consistent with the 1.5C temperature trajectory – by up to 21%. Alongside private sector interest, ocean-based climate action is also gaining recognition and high-level action from governments and becoming a feature of international agreements.

Utilising seaweed to sequester carbon could have significant potential in long-term carbon storage. Sargassum requires minimal nutrients, is resilient once established and is an unattractive food source for marine life. Adding seaweed to the ocean can offer other benefits, such as improving fish populations and encouraging marine biodiversity. Elsewhere, seaweed is being explored for other applications including mixed-use offshore systems and cultivation for use in low-emission livestock feed.

Seafields is aiming to sequester 1 gigatonne of CO2 from the atmosphere each year by 2025. The aquafarms will be irrigated using underwater pipes to upwell nutrients, taken from deeper waters to sustain and control production. The firm’s process of shredding and baling the seaweed is designed to reduce the likelihood of remineralisation on the seabed, enabling it to sequester carbon for longer periods of time. Once established, Seafields plans to sell carbon credits in the voluntary carbon market to fund its work. However there are multiple uncertainties to be resolved, including the impacts of baled sargassum on marine ecosystems and habitats when it sinks to the ocean floor. Additionally, the company will have to quantify and monitor how much carbon is sequestered in the sargassum in order to verify its blue carbon-capture technology.

Utilising seaweed for carbon sequestration is being explored by other companies, including Carbon Kapture, which plans to establish a network of aquaculture farms to cultivate kelp across south Wales, Ireland and the UK’s south coast which will sequester CO2 30 times faster in comparison to land-based reforestation.

The agglomeration of sargassum is invasive and has been exacerbated by warmer ocean temperatures linked to climate change, creating problems for the environment and local communities such as Mexico and the Caribbean coast. Seafields’ farms will be located in areas of the south Atlantic, where sargassum does not naturally survive due to inhospitable conditions including water temperature and depth, reducing the risk of it becoming an invasive problem. Additionally, researchers are exploring commercial ways to mitigate the presence of sargassum in areas struggling with excessive natural build-ups, such as its potential as an energy source, including producing biogas, bioethanol and biodiesel.

Source:

iNews

What’s happening? Nearly two-thirds of the hundreds of mollusc species in the deep ocean could face extinction due to deep-sea mining, according to a study from Queen’s University in Belfast. The research has seen dozens of mollusc species living close to hydrothermal vents added to the red list of threatened species published by the International Union for the Conservation of Nature (IUCN). The researchers have said mining could also lead other species dependent on the vents to face extinction risk.

Why does this matter? The deep sea is the largest biome on the planet, comprising varied geomorphological features and habitats – from canyons and seamounts to cold seeps and brine pools. Hydrothermal vents, first discovered in 1977, can be found at a depth of 1,000 to 4,000 meters and play an important role in regulating ocean chemistry. They occur at volcanically active mid-ocean ridges, where seawater enters the Earth’s crust and gets heated up to 400C by hot magma. During the process, the water absorbs minerals such as copper, iron, zinc or cobalt from surrounding rocks before exiting via vent openings as hot, mineral-rich fluids. The contact with cold seawater leads to a chemical reaction and the formation of solid mineral deposits.

With about one-fifth of the global ocean floor mapped, scientists have discovered 600 hydrothermal vent sites, each hosting an abundance of diverse life forms. In the absence of sunlight, endemic microbes convert CO2 into sugar using chemical energy from the vent fluids – a process called chemosynthesis – which forms the basis for symbiotic relationships with larger organisms such as shellfish or tubeworms. These animals attract predators including crabs, zoarcid fish and octopuses, turning the vents into biodiversity hotspots.

Hydrothermal vent structures – also known as seafloor massive sulphides – are one of three types of deep-sea mineral deposits under consideration for commercial exploitation, alongside cobalt-rich seamount crusts and polymetallic nodules on abyssal plains. Researchers have now warned that mining poses a substantial threat to these unique ecosystems. Of 184 mollusc species found near hydrothermal vents, 62% were classified as threatened, while only 25 species were fully protected from extraction activities through local conservation measures. In the Indian Ocean, every single mollusc species was listed as threatened.

The new study is not the first to warn about the consequences of industrial-scale deep-sea mining. Others have pointed out that the destruction of seafloor habitat, the release of toxins and sediment plumes, as well as the noise and light pollution associated with deep-sea mining could have catastrophic long-term impacts on sensitive and under-researched ecosystems. Large-scale impacts on these ecosystems would also have implications for climate change mitigation: scientists have estimated that deep-sea bacteria could fix up to 200 million mt of CO2 in the oceans per year.

Although countries like Japan, South Korea and Papa New Guinea have started mining resources in territorial waters, the vast majority is located in international waters beyond national jurisdiction, which have not been opened to large-scale extraction. This area, estimated to contain more valuable metals than all continents combined, is governed by the International Seabed Authority (ISA) under the UN Convention on the Law of the Sea. As of May 2021, the ISA has issued 31 exploration licenses to advance the development of machines and extraction methods. By June 2023, the organisation is due to finish the underwater Mining Code, a regulatory framework setting out technical and environmental standards for the mining of materials used to produce green energy technology and electric vehicles.

Meanwhile, more than 600 marine science and policy experts, backed by the European Parliament and the IUCN, have called for a global moratorium on deep-sea mining.

Sources: Frontiers in Marine Science; The Guardian

What’s happening? The Glasgow Climate Pact, agreed at COP26, recognises the ocean under the United Nations Framework Convention on Climate Change (UNFCCC) and backs an annual dialogue on strengthening ocean-based action to take place in the summers before COP summits, starting in 2022. Small island state representatives at COP26 stated they would like to see further action and the COP process get “consistently bluer”. Others argued that too much had been pledged on forests and that more needed to be committed to ocean climate finance.

Why does this matter? Alongside the official recognition of ocean-based climate action as part of the Glasgow Climate Pact, COP26 saw a host of separate ocean-based initiatives launched by public and private-sector entities. However, in order to limit the effects climate change will have on the ocean, and for the ocean itself to play an effective role in mitigating climate change, action – public, private and from coalitions – needs to be enhanced.

COP25 saw talk about the importance of creating a dialogue on the ocean and climate change, in addition to the launch of the High Level Panel for a Sustainable Ocean Economy. COP26, however, had even more of a blue focus. The summit’s fifth day was dedicated to oceans, calling for action to protect and restore their health and resilience.

A long list of ocean-positive initiatives were announced on “Ocean Action Day”, including:

• the Clydebank Declaration, made between 19 countries to accelerate moves towards net-zero shipping through low-carbon fuels and associated infrastructure;

• Columbia, Costa Rica, Ecuador and Panama pledging to connect their marine protected areas to create one of the world’s richest areas of biodiversity – the Eastern Tropical Marine Corridor;

• the Ocean Risk and Resilience Action Alliance (ORRAA) announcing a multi-million dollar investment to accelerate coastal and marine environment financing;

• Convex announced a multi-million dollar science project with the Blue Marine Foundation and Exeter University to quantify the carbon stored globally on the seabed;

• the UK government’s announcement of £400,000 ($532,760) to support Fiji in issuing its first blue bond;

• the Great Blue Wall initiative, which establishes a network of marine and coastal conservation areas to protect and develop carbon sinks, including mangroves, coral reefs and seagrass, through involving local communities; and

• the progression of the “30by30” target to protect at least 30% of the global ocean by 2030.

It’s important to note that ocean solutions can also play an important role in country climate pledges made under the COP process, otherwise known as nationally determined contributions (NDCs). As of November this year, 54 NDCs contained at least one ocean-focused action, and at COP26 the Seychelles revised its NDC to specifically include the blue economy and coastal adaptation – with it pledging to protect 100% of mangrove and seagrass by 2030.

However, there is further untapped potential for ocean-based solutions in NDCs. The Marine Conservation Society and Rewilding Britain have pointed out that ocean-focused climate initiatives are vital, for example, for the UK to achieve its 2050 net-zero emissions target.

Globally, it’s been estimated that ocean climate solutions can close the 1.5C “emissions gap” – i.e. the difference between emissions projections under current climate policies and a 1.5C-friendly pathway – by 21%. To help close the gap, measures can be taken to safeguard blue carbon ecosystems; to target and reduce emissions from fisheries and aquaculture; to expand the provision of offshore renewable energy; and to work to further cut emissions from shipping.

Now that countries have agreed to revise and come back with stronger NDCs at COP27 in Egypt, this marks a perfect opportunity for such solutions to be factored in and for the oceans to fulfil their true potential in helping countries cut their carbon footprints.

Source: China Dialogue Ocean

What’s happening? The migration habits and biology of brown crabs are affected by underwater power cables that mesmerise the crustaceans, according to research conducted at the St Abbs marine station in the Scottish Borders. Researchers have found that the electromagnetism produced by the cables affects the creatures’ blood cells. The crabs are attracted to the cables, which are used for offshore renewable energy, when they emit an electromagnetic field of 500 microteslas or more, according to Professor Alastair Lyndon.

Why does this matter? It’s important to recognise the lesser-known impacts of renewable energy infrastructure on marine biodiversity, given the key role clean energy has to play in the net-zero transition. While renewable projects are clearly a sustainable energy option, their impacts on ecosystems, marine habitats and the fishing industry should also be considered.

The temporary stunning of crabs isn’t necessarily an issue in itself (though it may be uncomfortable), but it delays typical behaviour such as foraging for food or finding mates. Altered activity levels can also alter sugar metabolism rates in the crabs in a similar manner to humans. Changing blood cell levels within the crabs’ bodies could also increase their susceptibility to bacterial infections. Additionally, traditional migration patterns of male brown crabs, which typically move upwards along Scotland’s east coast, could be disrupted. This may result in a build-up of crabs in the south and scarcity in the north-east. Such abnormal distributions could influence marine ecosystem interactions and food webs, given brown crabs are active predators and feed on a range of crustaceans and molluscs, such as mussels, and are known to scavenge for food along the seabed.

On a larger scale, migratory changes could increase the instability of catch levels for local Scottish fisheries in some areas, posing risks to the UK’s fishing sector. Crabs are the second-most valuable crustacean species across the UK fleet following the langoustine. UK fisheries caught around 60% of the 2019 global total catch of around 50,000 tonnes. Maintaining optimal crab and lobster populations for catches is also important to increase their quality and can contribute to longer-term benefits to the wider marine environment, according to researchers of a four-year University of Plymouth field study.

Clean energy projects can result in other detrimental impacts for marine habitats. Conservation groups have raised concerns over the UK’s offshore wind projects, for example, which can disrupt vulnerable carbon-storing habitats such as saltmarsh, seagrass and deep-sea mud habitats.

The acoustics of piling offshore wind turbines into the seabed as well as underwater sound generated from operational offshore wind farms are also a source of noise pollution for aquatic life. However, with the right planning renewable projects can be co-used to boost marine populations and reintroduce species. Van Oord, for instance, deployed oyster reef structures at its Borssele offshore wind farm in efforts to boost the North Sea’s oyster population amid a revival of Europe’s flat oyster beds.

Increased monitoring and tracking of marine life populations will contribute to knowledge on the impacts of offshore renewable energy development. Scientists from the University of Plymouth recently deployed devices to track the movements of the endangered crawfish, which are important to small-scale coastal fisheries. Employing tech-based mitigation solutions can also help – Sercel recently launched Bluepulse, a marine acoustic source aiming to protect marine life from high-frequency noises.

Source: Journal of Marine Science and Engineering

What’s happening?

“Blue” foods including shellfish, fish and algae carry significant potential to improve global development if the appropriate policies and investments are adopted, according to a major global review. Professor Dave Little of the University of Stirling’s Institute of Aquaculture contributed to the Blue Food Assessment research, with five peer-reviewed papers produced as part of the project. He said small fisheries and aquaculture provide 90% of jobs in the sector and have a crucial role to play in local food security. The review examined how aquaculture can improve diet, protect livelihoods and reduce the environmental footprint of the food industry.

Why does this matter? At present, over 2,500 species and groups of shellfish, fish, aquatic plants and algae are either fished or cultivated as part of global food networks. Given global demand for blue foods is expected to double by 2050, fisheries and aquaculture have a large role to play in the sustainability and resilience of these systems.

Blue foods can play a significant role in delivering more sustainable diets globally. One of the five published studies explored the environmental performance of blue foods, with researchers finding major species produced in aquaculture such as carp and salmon have a lower footprint in comparison to chicken, which is considered the most efficient land-based livestock species. On average, most blue food stocks produced for human consumption generate fewer greenhouse gases, water pollution and require less resources than livestock.

Among aquatic foods, farmed seaweeds, bivalves and small pelagic species including sardines generate the least greenhouse gas emissions, according to researchers. In addition, aquaculture farms for species such as oysters and mussels can simultaneously offer natural benefits, such as filtering excess nutrients from water and removing pollutants to improve water quality.

In another study, researchers evaluated the role of small-scale fisheries and aquaculture operations, which provide livelihoods for over 100 million people around the world and ultimately sustain one billion but are often overlooked in policy and decision-making. It highlighted that local seafood producers are more likely to survive shocks, such as the Covid-19 pandemic during which smaller actors were able to fill market gaps as larger producers scaled back international operations.

Despite some efforts from governments and organisations, including a fast-track plan for small fishing co-operatives in South Africa, and a framework aiming to enhance sustainability in Southeast Asian small-scale shrimp farms, the progress of small aquaculture operations is still hindered by disproportionate inaccessibility to resources, climate change risk and social exclusion. The analysis noted women as crucial actors in ensuring an equitable food sector, highlighting the gender inequalities that continue to undervalue them.

It’s worth also noting that while blue food systems can help improve global development with the right support, their benefits are climate-vulnerable. For instance, ocean-based aquaculture operations may be impacted by ocean acidification and changing species distributions, while land-based fisheries could see knock-on effects from regional droughts posing risks to freshwater supplies. It’s worth noting aquatic food systems in developing nations such as Africa, the Indo-Pacific and Southeast Asia are the most exposed to climate risks and food security.

It is important techniques are employed that take account of this and also minimise the environmental impacts of aquaculture. To curb water pollution, tech-based offerings are gaining interest, such as nanobubbletechnology by Moleaer that restores the health of aquatic systems and water quality in salmon aquaculture. Researchers are also working on solutions to reduce waste at source, for instance by developing biodegradable rope that can be composted, as well as creating less-polluting fish feed formulas.

Projects to repurpose aquaculture waste are also underway, with scientists at Hanoi University finding applications in biofuels, and in Singapore for biomaterials for bone repair. Some industry experts have also suggested bolstering fish populations could be used as a natural climate mitigation measure to remove large quantities of atmospheric CO2 in a similar fashion to land-based forest ecosystems. Finally, organisations are working alongside Indigenous communities – which possess often overlooked traditional and cultural knowledge – to minimise the environmental impact of fisheries by utilising low-impact techniques such as hook and line.

Source: University of Stirling

Why does this matter? As the report outlines, fisheries are both vulnerable to climate change impacts and also contribute to it, through direct vessel emissions and fishing equipment disrupting the seabed. Protecting the ocean and its marine habitats – which can sequester more carbon per unit area than forests – is critical to mitigating climate change. In the UK, saltmarsh and seagrass meadows store around 220 million tonnes of blue carbon, 93% of which is sequestered in marine sediments.

The report highlights three key areas to be addressed. First, tackling direct emissions from fishing vessels. UK fishing fleets generate an estimated 914.4 kilotons of CO2 annually – the equivalent of the annual energy usage of over 110,000 US households. WWF, the MCS and RSPB highlight that over half of the UK’s fleet still in operation is over 30 years old. Most vessels in this ageing fleet are powered by carbon-intensive heavy fuel oils, while half relies heavily on diesel.

Second, marine biodiversity should be improved by minimising and potentially reversing damage from poor practices and destructive fishing gear. Around 87% of fish caught by UK vessels use a combination of demersal and beam trawl, and seine nets, which damage muddy sediments and seagrass. When disturbed from the seabed carbon re-mineralises into the ocean and can be released back into the atmosphere, increasing greenhouse gas levels.

Third, the UK’s marine habitats require increased protection to improve their ability to act as a carbon sink, the report states, as blue carbon is further extracted when fish stocks are depleted. The first UK fish stock audit post-Brexit, published earlier this year, found only three of the UK’s top ten fish populations are fished at or under their maximum sustainability yield. Alongside fish and shellfish, larger species are also considered carbon stores, with species such as tuna estimated to be 10% to 15% carbon. This leaves the ocean system when they are fished.

Adopting a climate-smart approach would support the UK’s Fisheries Act, passed last year, which recognises climate impacts in fisheries but has yet to take action in addressing the issue.

Companies are developing solutions to decarbonise vessels, with some exploring alternative fuels such as hydrogen and ammonia to cut carbon from larger, long-range maritime transport. On a smaller scale, electrification is being looked at by several figures in the maritime industry, such as Bio Feeder, which announced plans to charter Norway’s first electric fish feed vessel this summer. Others are experimenting with sail-powered cargo fleets, such as Timbercoast, while SailCargo’s Ceiba vessel combines traditional timber sailing masts with solar-powered engines to achieve commercial-scale zero-carbon shipping.

For smaller fishing vessels, returning to traditional methods could be more appropriate. Cornwall-based Fal Oysters fishery is rooted in low-emission fishing practices, using just sail power and a lower impact approach to harvesting seafood.

To better protect the UK’s blue carbon-storing habitats, bottom trawling is set to be banned within Marine Protected Area (MPA) networks and increased limitations are due to be enforced outside of MPAs.

Less-destructive alternatives such as bottom longlines will require incentives to encourage positive action. Certain initiatives are aiming to reinvent less disruptive fishing gear, such as the Cyprus-based project SEALIVE, which is developing bio-based fishing nets made with natural materials including micro-algae. The nets are also compostable on an industrial scale.

Source:

https://media.mcsuk.org/documents/Climate_Smart_Fishing_Report_FINAL.pdf