Why it matters – In the Great Pacific Garbage Patch (GPGP), a mass of floating plastic spanning an area three times the size of France, 75% to 86% of plastic is linked to fishing activities. The ghost gear can be traced to mainly the US, China, Japan and the Korean Peninsula. It is estimated that 500,000 mt to 1 million mt of fishing gear ends up in the sea every year, highlighting the magnitude of the problem. Everything on our planet is interlinked. When something is dumped, it does not disappear, it pollutes the whole marine ecosystem, including the deepest point on Earth – the Mariana Trench.

Ecosystem decline – A visible consequence of ghost gear is the entrapment or digestion of items by marine life. A WWF report has labelled fishing gear as the deadliest of marine plastic debris, expected to impact 66% of marine mammals, 50% of all sea birds and all species of sea turtles. In 2018, it was reported 650,000 marine animals are killed each year by discarded nets, disrupting natural ocean processes such as the nutrients cycle.

Problem of microplastics – A less visible consequence of discarded fishing gear in the ocean is microplastics, which due to the unforgiving elements of the sea, can break down even smaller into nanoplastics. Microplastics in oceans have been linked to health problems and mortality in corals, fish, marine mammals, seabirds, sea turtles, zooplankton as well as other ocean creatures. This in turn impacts humans in multiple ways from disrupting the natural processes that regulate oceans, such as the ability of plankton to photosynthesis, to the health impacts of eating seafood which contains microplastics.

Human health risk – Microplastics have been found inside human bones, highlighting the depth of the problem. Furthermore, bodies containing high amounts of microplastics appear more susceptible to stokes, heart attacks and dementia. Chemicals contained in plastics most likely interfere with hormones and therefore the body’s metabolic function. The invisibility of microplastics and the movement of ocean currents adds a nuance to our understandings of the ocean and forces us to inspect our binary ideas of boundaries and categories.

Limitation of borders – Chile, on the 10 March 2026, made a historical announcement to protect 337,000 sq km of the waters around the Juan Fernandez and Nazca-Desventuradas marine parks, equating to the third largest no-take zone in the world, covering 899,268 sq km. This is a landmark achievement, supported by the Blue Marine Foundation, which will provide great benefit to the protected area. However, marine protected areas (MPAs) are still affected by abandoned fishing gear as the ocean currents circulate beyond human constructed borders. This enforces the need to clean up fishing gear as even in MPAs, fishing nets and associated microplastics can still damage the environment.

Innovative solutions – Safe disposal of fishing nets is essential to ensuring less animal deaths and microplastic complications, however lack of waste infrastructure, logistical barriers and lax enforcement perpetuate the issue. Many innovative options are available, from companies such as Bureo repurposing fishing nets into items such as waterproof clothing to Ukraine’s use of fishing nets as drone defences.

A holistic approach – Ultimately, the crisis of ghost gear proves that the ocean does not recognise human borders or protected statuses. Abandoned equipment acts as a persistent, lethal threat across the entire water column to both marine life and human health. Protecting our waters requires marine protected areas, but also a global shift toward accountability, innovative recycling and rigorous disposal protocols for fishing gear. Until we treat the ocean as a single, interconnected system, MPAs will remain vulnerable to the reach of plastic pollution from beyond their assigned borders.

What’s going on? The CATCH IT system was designed to be the EU’s definitive weapon against illegal, unreported and unregulated (IUU) fishing – a phenomenon that a 2009 study estimated drained over $10bn-$23bn from the global economy in 2003. The IUU Fishing regulation to prevent, deter and eliminate IUU fishing has been in force since 1 January 2010 and the IUU Fishing Risk Index was created in 2019 to score different countries’ efforts. Despite these measures, estimates suggest that global IUU catches are equal to 13%-31% of fish in production.

Catch certificates – Before the digital 2026 requirements came into force, fishing numbers were reported via a paper “catch certificate” – an import document which certifies that products were caught in compliance with national and international fishing laws as well as conservation and management metrics. The document declared the state flag the ship was operating under, however the paper system came with many problems.

Loopholes in the old system – The paper system was exploited by systematic fraud. Copies of the same catch certificate could be used to import multiple catches at multiple EU member state entry points, because there was no centralised European system to conduct cross-checks on other member states. Uneven enforcement across member states also created a problem, as importers with “high-risk” seafood knew to go to ports such as the Netherlands which check less than 5% of fish imports from non-EU vessels, compared to Spain which would check over 70%. With over 250,000 catch certificates in the EU annually, the quantity to physically check was also near-impossible.

Welcoming CATCH – The CATCH IT system entered into play to confront the problems with the paper system, but there have been teething issues from the start. Countries such as Spain report a lack of integration with current custom control systems, leading to loss of stock due to ship imports being refused. The system also contains both software and technical gaps, delivering server error messages and not including all fish species and postal codes for the countries that need to use it. Furthermore, catch certificates from non-EU countries must be uploaded in PDF format to the system. However, for big catches, the initial file size limit of 2 MB was too small.

Mounting concern – As well as issues with the technology and software, the strict parameters such as recording catches from zero kg and small margins of tolerance are proving “unworkable in practice”, increasing the likelihood of heavy fines for companies due to breaking unattainable standards. Organisations have asked for the CATCH IT system enforcement to be postponed until January 2027 to leave time for frictions to be smoothed. Nevertheless, the European Commission still seems adamant at continuing with implementation, introducing “flexibilities temporarily” while users adjust to the system.

Proof of the catch – The CATCH system confirms that the seafood industry in Europe is trending towards data specificity rather than estimates, traceability premiums and the integration of digital systems into everyday operational tasks. While wild-catch fisheries grapple with these new rules, the aquaculture sector has been driving digital automation and monitoring for years throughout the value chain. Companies such as aquaManager enable the production of reliable, structured and transparent data in aquaculture to help with regulations and policy, as well as contributing to the development of more sustainable farming methods.

Looking ahead – The establishment of CATCH demonstrates the need for data-driven supply chains and the prioritisation of automation going forward across both wild and farmed fishing. Transparency is the new currency in the seafood industry.

In November 2025, the World Food Programme (WFP) published its 2026 Global Outlook entitled Hunger and hope: Innovative solutions to address food insecurity, which highlighted that 318m people are facing food insecurity—more than double pre-pandemic levels in 2019. The 35-page document makes for sombre reading, with nearly 38m children under five acutely malnourished and 16 hunger hotspots where food security is expected to deteriorate between November 2025 and May 2026.

Yet nowhere in the report, which looks to innovation as a key enabler of the WFP’s Strategic Plan 2026-2029, are blue foods or indeed any ocean-driven innovations mentioned as potential solutions. Although many of the countries affected have access to a coastline, conflict—which is the lead cause of hunger and malnutrition—is likely to hinder the development of blue foods.

In regions facing extreme weather and economic pressures, the other two drivers of acute food insecurity, blue foods have the potential to drive innovation for food insecurity. Moreover, “hidden hunger”, the deficiency of micronutrients, is a global health issue affecting over 2bn people, who may consume enough calories but lack essential vitamins and minerals.

So how can blue foods help?

To read the full blog and find out how Chris Gorell Barnes believes blue foods can help escalating food insecurity, click here.

Role of the fund – Since its establishment in 2017, The Norwegian Aquaculture Fund has paid out NOK17.1bn to coastal communities and authorities. Revenue is generated for the fund through production fees, sales and auctions of licences related to fish farming. Fifty-five percent of revenue from the sale of new farming permits goes towards the Aquaculture Fund along with the total production tax. The past two years, NOK6.1bn has been paid out to communities, of which 80% has gone to municipalities and 20% to country municipalities that have aquaculture activities.

Norwegian aquaculture – Norway is the second largest exporter of seafood globally. The Norwegian Seafood Council exported 2.8 million mt of seafood equalling NOK181.5bn in 2025, despite tricky trading conditions. From 2024, this is an increase of 4%, demonstrating the growing wealth of the sector. Since 2010, the value of Norwegian aquaculture has increased 270%, with average annual growth equalling around 10%. The Aquaculture Fund ensures communities hosting aquaculture firms also reap the rewards of the industry on their land.

Funding communities – Froya, one of the municipalities earning the most from the Aquaculture Fund, is located in Trondelag County. Mayor Kristin Stromskag noted it uses the money to improve the lives of inhabitants and to create a healthier economy. This can range from community events and renovations to attracting teachers to the area with bonuses. As many people can earn more in the aquaculture industry, lower-paying state roles such as teaching need an extra push to ensure appropriate people are filling the posts.

Inspecting dependency – The Aquaculture Fund allows locals to benefit from the profits of the aquaculture in their area. However, it also demonstrates how dependent communities are on the industry. Even with the Fund, Norway had to reform their tax system so wealthy fishing billionaires leaving the country did not severely impact local municipalities when they no longer paid an individual tax contribution. Furthermore, unsustainable intensive aquaculture methods are now damaging both wild and farmed fish stocks in Norway due to increased environmental pollution and sea lice outbreaks. This not only impacts the livelihoods of local people but paradoxically threatens the profitability of the aquaculture industry itself.

Success in sustainability – Pioneering companies including Ava Ocean are essential for sustained growth of the aquaculture industry. Ava Ocean has pioneered a non-destructive approach to harvesting Arctic scallops in the Barents Sea and was granted fishing rights following a 30-year ban that had been introduced to address the impacts of harmful trawling. Other companies, like sustainable cod-farmer Kime Akva, highlight their focus on creating positive local ripple effects. Supporting companies that prioritise environmental stewardship and local development will be key to ensuring that aquaculture continues to deliver long-term, equitable benefits across Norway’s coastal regions.

Looking forward – The importance of developing sustainable practices and the cooperation of public and private sectors concerning the ocean was emphasised at the World Economic Forum Annual Meeting in January through the initiative Blue Davos. The Norwegian Aquaculture Fund demonstrates one way in which public-private cooperation can be achieved. In future, further development of legally binding mechanisms will be essential to ensure private industries both create value and protect the environments on which they rely.

Why does this matter? The EU Fish Market Report has been published annually by the European Market Observatory for Fisheries and Aquaculture Products (EUMOFA) since 2014, offering key insights into market behaviour, consumer patterns and policy outcomes. The report underscores the importance of market transparency to inform EU policymaking and promote a better understanding of shifting dynamics in the sector. It also allows for closer examination of the underlying factors influencing current trends in pricing.

Rising prices, falling consumption – While data shows a 4% increase in overall spending, this does not reflect higher consumption. Instead, the cost of seafood per unit has risen, meaning households are paying more for less. This trend is part of wider food inflation across Europe, with aquatic food prices increasing by 25% between 2020 and 2024 – less than the 28% for meat and 32% for food overall.

Unpredictable input costs – In aquaculture, much of the rising cost pressure stems from rising input prices. Feed and transport costs have climbed, largely driven by fluctuating energy markets and geopolitical uncertainty. The report highlights these disruptions as central to the price surge, indicating that stabilising supply chains, particularly energy and logistics, could help address the problem.

Energy as a key vulnerability – Aquaculture is notably energy-intensive. Electricity makes up a significant proportion of operational costs. The recent energy crisis has exposed one of the industry’s main vulnerabilities – its dependency on fossil fuels. As these energy sources become more expensive or unpredictable, production costs increase accordingly. In response, the European Commission launched an action plan in 2023 to decarbonise EU fisheries and aquaculture. Its goal is to achieve a carbon-neutral sector by 2050 through energy efficiency improvements and a shift to renewable sources.

Decarbonisation and local energy – For aquaculture to have long-term resilience and sustainability, reliance on fossil fuels must be reduced. Decarbonisation makes the industry less vulnerable to external shocks by decentralising energy production. This can be achieved even on a small scale. Fisheries and farms could install clean energy systems locally, such as compact wind turbines and floating solar panels. Pilot schemes are currently testing floating wind farms tailored for marine aquaculture use. These innovations are gaining momentum, with companies such as Alotta, a Norwegian floating solar firm, recently raising NOK63.5 million ($6.2m) to globally scale its renewable floating solar model for aquaculture energy.

Efficiency through AI – Savings can also be made through more efficient systems and processes. Feed accounts for around 60% of total production expenses in aquaculture. Inefficiencies such as overfeeding not only raise costs but also pollutes aquatic environments. However, recent developments in AI have brought promising solutions. AI-powered systems are now capable of monitoring fish behaviour, water quality and health indicators in real time, allowing for precise feed management.

Smarter systems – Companies such as aquaManger are using advanced sensors and AI-enabled cameras to track key metrics including oxygen levels, temperature and behaviour which all contribute towards appetite. This technology supports data-driven decisions on feeding schedules, helping to enhance survival rates and optimise resource use. It demonstrates that energy efficiency and digital innovation can go hand in hand, delivering economic and environmental benefits across the sector.

Addressing vulnerability – The EU Fish Market Report 2025 illustrates that while higher prices and lower consumption reflect present challenges, they also signal where interventions are needed. From smarter feeding systems to decentralised renewable energy, the path forward lies in innovation, efficiency and sustainability. Aquafood has already been flagged as part of a climate solution with blue foods generating minimal CO2 emissions, providing a greener protein alternative to meat. The right investment today could build a more resilient, affordable and environmentally sound aquaculture industry for the future.

COP30 and the High Seas Treaty

Global ocean governance and climate policy was one of the most consequential developments of 2025 with the ratification and imminent legal implementation of the High Seas Treaty. Formerly known as the Agreement on Marine Biological Diversity of Areas Beyond National Jurisdiction (BBNJ Agreement), the high seas treaty is a landmark global governance instrument designed to protect biodiversity in international waters.

By September, the treaty secured 60 ratifications, triggering its adoption into international law and paving the way for wider enforcement in 2026. Its central aim is to help conserve 30% of the world’s oceans by 2030, a critical environmental milestone that had been decades in the making. And, by the end of November, the treaty had won the 2025 Earthshot Prize, signalling its global importance and catalysing broader ocean-finance dialogue at COP30, the 30th session of the United Nations Climate Change Conference in Belém, Brazil.

There, the ocean narrative was brought to the forefront of climate discussions, underlining oceans as both climate mitigators and essential economic systems. This was also a key tenet of the 2025 World Ocean Day theme: ‘Catalysing Action for Our Ocean & Climate’, which aimed to put the ocean, a critical natural capital asset, at the centre of any climate change discussions.

Backed by partners like Ocean Conservancy, the Ocean & Climate Platform, and the World Resources Institute, COP30 saw the expansion of the Blue NDC Challenge to 17 members with new additions including Belgium, Canada, Indonesia, and Singapore. Originally launched at the UN Ocean Conference in France in June with 11 founding members, the Blue NDC Challenge calls for all countries to place the ocean at the heart of their climate plans, known as Nationally Determined Contributions (NDCs).

By incorporating solutions such as sustainable fisheries, marine conservation, decarbonising shipping and developing offshore renewables into NDCs, investment is attracted and finance accelerated for ocean-based projects that could protect marine ecosystems and at the same time unlock the ocean’s potential for climate mitigation and adaptation.

Blue Economy: Growth & Investment Opportunities

A recent OECD report found that if the ocean were a country, it would be the world’s fifth-largest economy. Ocean services provide income for 600 million people globally, and contribute to the lives of billions. A European Union report estimates that the blue economy contributes hundreds of billions in economic output and millions of jobs, with sectors spanning fisheries, maritime transport, tourism, aquaculture, and offshore renewables.

In the EU alone, recent data points to a near €250 billion to €263 billion gross value contribution and nearly five million jobs in ocean-linked economic activity. Yet, currently, just 1% of global climate finance supports ocean-related solutions to climate regulation and food security services. The Baku to Belém Roadmap, released before COP30 and inspired by COP29, however, points to the importance of more funding going towards oceans, highlighting the need to scale ocean finance as “critical” for the future.

Phenix Capital’s 2025 Blue Economy Impact Funds report highlighted that, in April when the report was published, there were only five pure-play impact funds focusing on UN Sustainable Development Goal 14: Life Below Water, and only 6.6% of the impact funds in the Phenix Capital database were dedicated to blue economy. That said these numbers represent a 463% growth in number of funds in a decade, suggesting a changing tide. Dedicated vehicles, such as blue bonds, sustainable ocean funds, and blended finance mechanisms, are vital to bridge capital and impact.

To this end, this year saw, T. Rowe Price and the International Finance Corporation launch the T. Rowe Price Emerging Markets Blue Economy Bond Strategy, aimed at catalysing the corporate blue bond market. The bond fund raised $200 million from investor such as Xylem Inc., a water solutions company and Builders Vision.

The year is ending with the Asian Development Bank (ADB) approving a $500 million loan to support a sustainable blue economy in the Philippines, having reached a $150 million blue finance agreement to scale sustainable aquaculture in Thailand earlier in the year. The latter agreement is targeting improved shrimp production practices and supports small farmers with innovation and training. The ADB is specifically investing in sustainable blue economies for poverty alleviation in Asia and the Pacific and these deals exemplify how blended, cross-sector investment can both reduce environmental risk and unlock economic value, from nutritious blue foods to resilient coastal infrastructure.

A blue food solution

Right now climate and conflict have exacerbated lack of food and hidden hunger from nutritionally inadequate protein-deficient diets, which means that today there are 319 million people in 67 countries that are acutely food insecure and 38% of the global population are currently either overweight or obese.

Food insecurity, together with public health and greenhouse-gas emissions are three global risks that need to be solved if we ever want to reach meet the SDGs and hope to more feed 10 billion with nutrient dense high-quality protein by 2050, without degrading the planet. This year, the Ocean 14 Capital Fund 1 took a step towards this with its investment in Enthos, which aims to scale organic waste-derived insect protein.

Despite the substantial scientific evidence that links diets with human health and environmental sustainability, the absence of globally agreed scientific targets for healthy diets and sustainable food production has hindered large-scale and coordinated efforts to transform the global food system. To address this, the EAT-Lancet Commission convened 37 leading scientists from 16 countries in various disciplines to develop global scientific targets for healthy diets and sustainable food production.

The result, the second 2025 EAT–Lancet Commission Report on Food Systems, represents a major update to the original 2019 framework, now highlights that blue foods—specifically fish, seafood, and aquatic plants—are a key source of sustainable protein and are essential to achieving nutritional, environmental and food security goals.

Moreover, a study published in Nature as part of the wider Blue Food Assessment found that increasing the consumption of low-emission blue foods could cut annual global  emissions by a gigaton or more compared to continued reliance on land-based animal alternatives. On top of this, in 2025, within the aquaculture sector, global standards and ESG frameworks advanced, driven by industry bodies like the Global Seafood Alliance, released updated salmon farming standards with enhanced emphasis on human rights, animal welfare, biosecurity and environmental protection.

Ocean 14 Capital Fund 1’s own portfolio companies are active participants in this evolution. Firms like SyAqua and AquaExchange are contributing genetic innovations, alternative feeds and data analytics that enhance productivity while reducing environmental footprints; core elements for resilient and investor-ready blue food systems.

Pollution & Ocean Technology

Decarbonising maritime transport—a historically challenging sector—showed progress this year. Shipping is responsible for 3% of global greenhouse gas emissions but is not covered by the Paris Agreement. Earlier in 2025, the International Maritime Organization finalised an agreement to cut shipping carbon emissions, laying groundwork for climate-aligned shipping practices. Starting in 2028, ships will be required to adopt cleaner fuels or face penalties. This deal is the first-ever international mandate on emissions targets for the shipping industry, but there are headwinds.

Environmental science suggests that emerging routes such as the Arctic Sea Route between Europe and Asia, which is opening due to melting ice, could increase total shipping emissions. Moreover, they could and introduce new ecological threats, particularly black carbon impacts and oil spill risks. This underscores the importance of combining policy with monitoring technology from innovators such as Sofar Ocean, whose sensing platforms improve understanding of shipping impacts in sensitive regions.

Technology such as AI and remote sensing tools to detect hazards like ghost fishing gear, which comprises 30% of total plastic waste in the oceans, are gaining traction, supporting cost-efficient ecosystem monitoring and cleanup strategies. WWF Germany has partnered with Accenture and Microsoft AI for good to develop ‘Ghost Net Zero AI’ a software identifying ghost nets in the ocean.

With collection programmes in six countries, 1,000+ tonnes of discarded nets are collected yearly and recycled Nylon sold to 20+ brand partners under the company’s NetPlus® trademark, Bureo has pioneered turning harmful discarded fishing nets into recycled raw materials used by brands such as Patagonia, Toyota, and Trek. Yet addressing plastic pollution remains a defining challenge. Scientific studies have revealed that nano plastics may be vastly underestimated in the oceans, raising alarms about ecological and human health impacts and stimulating interest in recycling infrastructure and circular economy solutions.

2026: Investing in an ocean-powered future

In 2025, we saw breakthroughs in ocean governance, financing and industry standards and 2026 looks set to expand this momentum. The team at Ocean 14 Capital hopes to see: the implementation of the High Seas Treaty, enabling wider marine protected areas and enforcement frameworks; growth in blue investment products particularly blue bonds that have gained renewed momentum following the United Nations Ocean Conference in June 2025; advances in marine renewables, particularly offshore wind, wave and tidal technologies; and the expanded integration of ocean measures in national climate strategies, particularly under enhanced NDC frameworks emerging from COP30.

The ocean is both a climatic linchpin and an economic engine; potentially worth trillions and capable of delivering sustainable food, energy, jobs and resilience. According to UNCTAD, two thirds of species living in the ocean have yet to be identified, offering the potential for the discovery of new antibiotics, low-carbon foods and other bio-based materials such as plastic substitutes, which alone offer a $10.8 billion market opportunity that can help cut plastic pollution while creating new business avenues.

This potential will only be realised if public policy, capital markets and innovation ecosystems align behind sustainable, scalable blue solutions. For investors, this means exploring ocean-positive opportunities across blue foods, aquaculture tech, renewables, carbon sequestration and sustainable shipping, sectors with measurable environmental impact and compelling growth trajectories.

Ocean’s central message is one of hope. Despite the damage, the ocean is resilient if we give it protection and time, so looking to 2026, we are very confident that oceans and the blue economy will no longer be out of sight out of mind but central to all conversations. The message is simple; investing sustainably and regeneratively in the ocean is investing in the planet — and the time to act is now. Here’s to Davos.

Why does this matter? The BBNJ winning the Earthshot prize underscores the recognised importance of the ocean by protecting two-thirds previously vulnerable to deep-sea mining and other exploitative practices due to not being under any national jurisdiction. The win comes during a growing movement to recognise the ocean as the planet’s blue lung, producing over 50% of the planets oxygen and providing the largest carbon sink.

A recent OECD report found that if the ocean were a country, it would be the world’s fifth-largest economy. Ocean services provide income for 600 million people globally, and contribute to the lives of billions. Currently just 1% of global climate finance supports ocean-related solutions to climate change, but the Baku to Belém Roadmap, released before COP30 and inspired by COP29 points to the importance of more funding going towards oceans, noting that scaling ocean finance is “critical” for the future.

Marinez Scherer, marine biologist and Special Envoy for Oceans at COP30, in her opening speech  reiterated the need for urgent attention on oceans and the importance of mobilising finance as a partner – not a victim – of mitigation and adaption efforts.

Since 1995, the ocean economy has grown faster than any other, driven by marine biotech innovation, from low-carbon foods to new bio-based materials. Blue food, understood as wild or farmed fish, shellfish, seaweed and other aquatic plants and animals, provides a cleaner way for populations to access protein and nutrition, on average generating less greenhouse gas (GHG) emissions compared to food produced on land.

By changing diet to more blue food consumption, CO2 emissions could drop as much as 1.06 Gt per year by 2050, providing a considerable contribution towards  net-zero targets and demonstrating the importance of financing the development of aquaculture technologies for future food security with less impact on the planet.

The funding gap for SDG 14, “Life Below Water”, is estimated at around $149bn per year. This illustrates how far current investment falls short of what is required to protect marine ecosystems. Many hope that COP30 serves as a catalyst for closing this gap, particularly as recognition grows that the ocean holds some of the most powerful levers for climate mitigation.

The Belem Ocean Declaration, a document from Ocean Pavilion released before the start of COP30, aims to bring the role of the ocean to the forefront of UN Framework Convention on Climate Change (UNFCCC) processes. The declaration calls for the development of new technologies to monitor threats such as  plastic contamination and sea level rise, as well as engaging with private sector finance to scale ocean solutions.

Despite the ocean’s importance, corporate accountability remains weak, as companies have very little impetus to measure their impact. A recent study found that fewer than 25% of the world’s largest ocean-linked companies report any ocean-specific impacts. This accentuates the need to develop technology and methods to monitor blue industries, with COP30 signalling what many anticipate will be an “era of implementation” where more nature-based indicators are incorporated into climate adaptation strategies.

Although the High Seas Treaty does contain weaknesses, as noted by Ocean 14 Capital previous blog, its Earthshot win has sparked new momentum for the blue finance. The treaty has helped elevate ocean protection to a top-tier topic at COP30, bringing together governments, NGOs and businesses to assert the ocean’s importance to both planetary and economic health. In the wake of COP30, the tide may be about to change on ocean finance.

Why does this matter? The ASR represents not only a potential trade revolution but also a new environmental front line. It encompasses the Northwest Passage and the Northeast Passage, which have been branded as the Polar Silk Road to underline its economic promise.

China has recently launched the “world’s first China-Europe Arctic Express container route”, cutting transit time from over 40 days via the Suez Canal to just 18 days. Meanwhile, the Central Arctic Route, the sea route crossing the central Arctic Ocean, was navigated for the first time in 2025 by icebreaking vessels. These rapid developments mirror the region’s accelerating sea ice loss and the opportunity grabbing of shipping companies to reduce their delivery times. Yet the environmental trade-off is stark.

The most immediate threat is black carbon – soot-like particles from ship exhaust that account for around 20% of shipping’s global climatic impact. These particles enter the lower levels of the atmosphere and trap heat. In the Arctic, the effects of black carbon on global warming become up to 10 times greater.

When black carbon settles on snow and ice, it darkens the surface, reducing reflectivity and accelerating melt. This sets off a self-reinforcing feedback loop – as ice disappears, less sunlight is reflected, more heat is absorbed and warming intensifies. Alarmingly, black carbon emissions in the Arctic rose by 85% between 2015 and 2019, resulting from increased shipping traffic which will only keep growing.

While the International Maritime Organization (IMO) passed a 2024 regulation to restrict heavy fuel oil (HFO), a major source of black carbon, loopholes will allow many ships to continue using HFO until mid-2029. The delay weakens global climate efforts just as the Arctic enters a critical decade of change.

Questions have also been raised around the effectiveness of the ban, as oil blenders move towards fuels that contain more paraffins that are harder to clean up in the event of an oil spill. Decarbonisation of shipping has featured heavily on IMO’s agenda in October, with legislation seeking to fine vessels weighing 5,000 tons that exceed set emission thresholds and reward those using greener fuels.

Oil spills represent a catastrophic risk to the Arctic environment. As sea ice recedes, the number of ships carrying oil and chemicals through Arctic waters increases the likelihood of spills. Oil behaves differently in icy waters – it can slip beneath sea ice, making detection and clean-up extremely difficult. Crude and heavy fuel oils can persist for years, contaminating the prey and sites of marine mammals and threatening the food security of Arctic communities.

Scientists stress the urgent need for improved remote sensing technologies to detect and monitor oil pollution in real time to increase response time in remote regions. However, the Arctic Council warns that even the most advanced clean-up techniques are hampered by extreme weather and limited access.

Beyond carbon and oil, shipping noise presents another ecological hazard. Beluga whales can detect and flee from icebreaking noise caused by ships 35-78 km away, avoiding the areas for days after and disrupting their natural movement in an area. Alternatively, Caspian, Harp and Ribbon seals are vulnerable to ship strikes due to their “freeze” reflex when startled.

The ASR opening amplifies global emissions and environmental inequalities, shifting burdens toward high-latitude, ecologically sensitive waters that have had little shipping contact. As the Arctic is responsible for driving ocean currents and subsequent weather systems across the globe, the impact of increased shipping contributing to rising temperatures in the region will also impact the world.

By monitoring effects of shipping on sound and water quality in the Arctic using technology made by companies such as SOFAR, we can learn more about how this sensitive environment is being influenced by current shipping to inform future mitigation and policies. If the Arctic is to become the Polar Silk Road, we must focus efforts into decarbonising shipping to prevent the Arctic’s delicate environment being transformed indefinitely at an accelerated rate.

Why does it matter? The treaty, otherwise known as the Marine Biodiversity of Areas Beyond National Jurisdiction (BBNJ) Agreement, focuses on regions of the ocean outside national exclusive economic zones (EEZs), which extend 200 nautical miles from a country’s coastline.

These unregulated areas have been described by UN Secretary-General António Guterres as a potential “wild west” of the seas without regulation, long vulnerable to overfishing, deep sea mining and habitat destruction. The treaty promotes a precautionary approach to human activity in the high seas.

The ocean plays a critical role in maintaining planetary health. It generates 50% of Earth’s oxygen and absorbs vast amounts of excess CO2 and heat from human emissions, challenging the common view that forests alone are the planet’s lungs. Yet, much of the ocean remains a mystery.

As of June 2025, only 27.3% of the seafloor had been mapped using sonar and just 0.001% of the deep ocean has been physically observed, despite comprising 90% of the marine environment. Recent discoveries of thriving ecosystems in hadal trenches underscore how little we understand. With an estimated two-thirds of marine species yet to be discovered, the risk of harming unknown ecosystems through overexploitation is increasingly urgent.

While the High Seas Treaty represents a landmark shift in ocean governance proving a “lifeline for the ocean and humanity”, it does not provide comprehensive legal coverage. Fishing remains largely excluded from its provisions, as regulation still falls under existing Regional Fisheries Management Organisations (RFMOs).

Wealthy countries resisted expanding the treaty’s authority on fishing to avoid jurisdictional overlaps which they viewed as too complicated. This creates a legal and ecological gap between the protection of biodiversity and the treatment of fish as a commercial resource, despite overfishing being a major threat to marine life.

Similar concerns apply to deep sea mining. The treaty will offer legal backing for biodiversity protection, but non-signatory countries could argue that they are not bound to the agreement. An example of the complexity of international law enforcement occurred earlier this year, with US President Donald Trump making a controversial executive order to conduct deep sea mining in international waters, which China argued violated international law. Because enforcement relies heavily on national self-regulation, accountability remains inconsistent.

Despite its limitations, the treaty’s ratification by 60 countries is a major milestone. It signals growing international recognition of the ocean’s importance in tackling climate change and preserving biodiversity. While gaps in enforcement and regulation remain, the treaty lays crucial groundwork for a more unified approach to ocean governance.

Why does this matter? Robust standards de-risk aquaculture for consumers and investors alike, aligning the sector with evidence that many “blue foods” deliver materially lower environmental footprints than terrestrial meats – especially on greenhouse gases and land use.

Clear, auditable rules also help unlock capital. For example, dedicated “blue finance” is scaling with the European Investment Bank’s Blue Sustainable Ocean Strategy and emerging blue-bond vehicles, with early momentum but significant headroom for expansion. Simultaneously, investors are flagging material risks – feed volatility, antibiotic resistance, sea-lice management – that standards can directly address.  

Fishing and aquaculture are governed by a mix of law, community rules and market incentives. Global treaties, including the UN Convention on the Law of the Sea (UNCLOS) and regional fisheries management organisations, set binding quotas and technical rules. Nations enforce these through domestic laws such as the US Magnuson-Stevens Act, while some coastal communities co-manage stocks through territorial use rights.

Overlaying this, private certification schemes – such as the Global Seafood Alliance’s Best Aquaculture Practices – impose voluntary but commercially powerful standards. The result is fragmented yet overlapping governance spanning ocean to marketplace.

Aquaculture has shifted from the margins of the food system to its centre, now supplying nearly 60% of the world’s seafood. An estimated 90% of wild fisheries are fully fished or overfished, making aquaculture essential to meet future demand. Its importance extends beyond food supply – aquaculture is increasingly recognised as a driver of rural livelihoods, economic development and lower-emission protein production.

The challenge is ensuring this growth is underpinned by strong governance frameworks that balance efficiency with environmental stewardship and social responsibility.

According to a recent report from the World Bank, aquaculture could generate up to 22 million new jobs by 2050 and represents a $1.5tn investment opportunity. Countries such as Ecuador, Chile, Vietnam and Bangladesh already demonstrate how strategic investments can scale production while strengthening local economies.

Yet the transition from small-scale to more intensive and sustainable models require innovative financing and risk-sharing mechanisms, particularly in emerging markets. As sustainability-linked loans, blue bonds and development finance gain traction, aquaculture in our view is moving from a high-risk, underfinanced activity to one of the most promising opportunities for building a resilient and responsible global food system.

The sustainability transformation in aquaculture is already visible in the market. Ocean 14 Capital Fund 1’s portfolio offers early examples. Enthos is pioneering a circular-feed model in Latin America, where its Colombian facility will upcycle organic waste into insect protein and oil, reducing dependence on finite fishmeal while cutting methane emissions from food waste.

Meanwhile, WellFish Tech, a spin-out from the University of the West of Scotland, is advancing precision aquaculture through rapid, non-lethal blood diagnostics that give farmers near real-time insights into fish welfare. Together, these innovations show how the sector can reconcile productivity with sustainability and animal health – pointing toward a more resilient and responsible seafood economy in which investors can feel confidence.

Why does this matter? As many of us head off to the beach for our summer holidays, this study serves as a sobering reminder that ocean plastic pollution is an ever-growing issue. As more tourists flock to coastal areas, the volume of single-use plastics, such as bottles, wrappers and bags, often increases, much of it ending up in the sea. It should also make us more mindful of how we dispose of waste and consider using more reusable items.

Nano plastics, which are less than 1,000 nm across and invisible to the eye, can enter the ocean through multiple channels. For example, sunlight, ocean turbulence and temperature fluctuations cause larger plastic items to degrade into smaller particles, eventually reaching the nanoscale.

Nano plastics and larger microplastics – particles less than 5 mm across – resulting from industrial processes, washing synthetic fibres and tyre abrasion, among others, can also flow in from rivers or descend from the air. With an estimated 14 million mt of plastic leaking into the ocean every year, a figure that continues to rise, critical measures are needed now to address the problem.

The study also identified polyvinyl chloride (PVC) and polystyrene (PS) in the collected samples. However, the researchers’ estimate is likely conservative as they were unable to detect two other major classes of plastics known as polyethylene (PE) and polypropylene (PP), although it is highly probable that these also enter the ocean. The team plans further investigations to understand if these particles were obscured by other molecules in the study. They also want to determine if nano plastics are as prevalent in oceans elsewhere.

Recent research has revealed that micro and nano plastics are ingested by a broad range of aquatic species, from microalgae to predators such as eels, with harmful effects including digestive blockages, immune responses, DNA damage and altered gene expression. The severity of these impacts depends on particle size, chemical composition and degradation. Many plastics also contain endocrine disruptors that interfere with hormonal systems.

Ultimately, these particles enter the human food chain, with regular seafood consumers ingesting thousands every year. While health effects are still being studied, early evidence suggests similar risks in humans, including cellular disruption and exposure to toxic additives. Nano plastics may also act as vectors for pathogens or bacteria, potentially raising the risk of infectious diseases.

Another recent study highlights that micro- and nano plastics are discharged in sea sewage spills. When combined with coastal winds, billions of these particles could lift from the sea and enter the air around coastal towns and cities and be inhaled by residents, posing another potential route for the health risks linked to plastics. The authors have urged the UK government to require water companies to filter out micro- and nano plastics from their wastewater.

Still, removing the vast amount of nano plastics already in the ocean is impossible with current technologies. Instead, the focus must be on prevention. Recycling efforts are key, and the global market for recycled ocean plastics is gaining robust momentum. According to a Custom Market Insights report, it is expected to be worth approximately $1.9 billion this year and could reach $3.5bn by 2034.

Bureo is one such company operating in this space, taking discarded fishing nets and transforming them into 100% recycled raw materials used by household names such as Toyota, Patagonia and Trek. Another player in the area is AION, which recycles ocean plastic into everyday items such as shopping baskets and trays that can be returned for further recycling in a truly circular approach.

Beyond recycling, the world must simply use less plastic. Currently, more than 400 million mt of plastic is produced annually and could triple by 2060.

The next meeting to create the legally binding Plastics Treaty will take place from 5 to 14 August in Geneva, Switzerland. This will attempt to finalise the text after negotiations stalled at the previous round of talks in Busan, South Korea, in late 2024. Nevertheless, at the close of that meeting, 100 countries warned there could be no treaty without a cap on plastic production, a call that was reiterated at the UN Ocean Conference in June. The world will be watching to see if this can finally be achieved in the coming weeks.

Download the full report here.

Introduction

Ocean 14 Capital is a signatory of the Sustainable Blue Economy (SBE) Principles. Ocean 14 Capital Fund I (O14C), as an impact fund that was established to invest in businesses with a positive impact on the oceans generally, and SDG14 specifically, believes our policies, practices, activities and investments are well-aligned with the SBE principles.

O14C is an Article 9 Fund under the EU Sustainable Finance Disclosure Regulation (SFDR), with the stated objective of contributing to the top four targets of SDG14, a commitment that all the fund’s investments are sustainable investments that do no significant harm, and the application of Minimum Safeguarding Standards. This further reinforces our alignment with the SBE Finance Principles.

Fund Objectives and Status

O14C’s investment strategy is to invest in equity and equity-like securities in growth companies, two thirds in Europe, with the overall aim of providing investors with a competitive return on capital, and to generate positive environmental impact that contributes to the UN Sustainable Development Goal 14 on “Life below water”.

O14C’s first SBE report was presented in May 2022, when no investments had been made. The focus had been on preparing impact investment strategy and developing processes and procedures for impact assessment and measurement to support the strategy. The Fund began deploying capital later in 2022, with four investments made during that year. A further six investments were made in 2023 and four in 2024.

Alignment with global agreements

Sustainable development goals

The fund has been explicitly set up to make quantifiable contributions to SDG14. We also deliberately seek to create positive impact for other SDGs and avoid negative (unintended) impacts.

Kunming Montreal Global Biodiversity Framework

The UN Finance initiative proposes the following three broad actions for investors:

• Integrate biodiversity into investment decision-making;
• Invest in innovative financial solutions to help mobilise the USD200bn/year needed to meet the GBF’s objective;
• Disclose nature-related dependencies, impacts, risks and opportunities.

As an ocean-focussed impact fund, we believe we are moving strongly on the first two actions. We are currently evaluating how we can engage with TNFD. We aim to be able to disclose on nature related dependencies and impacts, and on the associated risks and opportunities, across our portfolio by the end of 2025.

Paris Agreement Alignment

Most of the fund’s asset allocation to date is in companies which have a direct or indirect GHG mitigation contribution. The fund’s assets do not yet have science-based targets to ensure alignment with the Paris Agreement.

SBE Targets

O14C’s primary SBE-relevant target is that 100% of investments must have quantifiable SGD14 impact. This is a requirement of our investment policy and of our SFDR precontractual disclosures.

In addition, each portfolio company has impact targets, set at the point of investment. Attainment of these targets determines whether 30% of O14C’s carried interest is disbursed to the Fund.

During the due diligence process prior to investment, O14C applies thresholds to manage the risk of an investment causing significant harm. These include:

Exclusions:

• O14C will only make investments that comply with, and where possible exceed, relevant legal and regulatory requirements and, where applicable, international well recognised standards.
• O14C will only make investments where there is alignment with the investee company’s management regarding impact goals.
• O14C will not invest in activities which entail significant risk of harming endangered species.
• The core of O14C’s investment thesis is to identify companies with a strong convergence of impact and commercial drivers. Where no such convergence or potential convergence exists in the company’s business model, O14C does not invest.

Qualitative thresholds:

• For potential impacts such as GHG emissions, where activities with zero emissions are very rare, the O14C’s due diligence ensures that investments are selected which demonstrate, or have the potential to demonstrate, low GHG emissions relative to competing products or services in the given sector.

Investments made to date and alignment with SDG14

At the end of 2024, O14C’s portfolio included the following investments, each of which aims to have various positive impacts, including measurable positive impact on SDG14:

Governance – an investment process to deliver sustainable investments

Ocean 14 Capital has put in place mechanisms designed to ensure that investment decisions made by the fund deliver impact.  To ensure that the fund invests in sustainable enterprises, O14C has deployed a proprietary evaluation process, which integrates sustainability risks into investment decisions through full-spectrum qualitative and quantitative ESG and impact due diligence, with third party experts as required. Our Impact Committee meets in parallel with our Investment Committee and has a veto on investment decisions.

We monitor the performance of each portfolio company on a continuous basis. O14C will agree an Impact Action Plan (the “IAP”) with every company prior to investment, committing them to actions, targets, monitoring and reporting requirements.

Updates to processes

During 2024 and early 2025, our processes were reviewed updated. The key changes included 1) a revised impact screening tool, incorporating natural capital considerations, 2) additional structured questionnaires on ESG and 3) greater formal responsibility for impact for the deal team leads and analysts, with the impact and ESG team taking a more supporting rather than executive function.

These changes have been reflected in a new ESMS (Environmental and Social Management System), which documents O14C’s full impact and ESG approach.

Click to view Ocean 14 Capital Investment Policy

Why does this matter? Thailand is the second largest producer of shrimp globally, after China. Thailand produced 266,000 metric tons (mt) of shrimp in 2024, nearly half of which was exported. Globally, shrimp farming has an outsized footprint financially and environmentally. The world shrimp marked was valued at $45.3bn in 2023 and is expected to reach $102.6 billion by 2034 due to its growing popularity.

However, shrimp farming has a carbon footprint that can exceed pork in terms of emissions intensity – an average of 13 kg CO2e/kg. Half of these emissions are down to shrimp feed. Commonly, soy may compose 30% of their diet but intensive monoculture farming of soy is a leading cause of rainforest clearing in South America. The other half of direct shrimp farm emissions come from the energy required to mechanically aerate water.

Further environmental degradation occurs if mangrove forests – high carbon sequestration reserves – are cleared to make way for the aquaculture industry. Meanwhile, antibiotics, shrimp waste and uneaten feed contribute to water pollution that can result in algal blooms and ecosystem disturbances. Thus, the blue financing agreement for sustainable aquaculture in Thailand comes at an opportune moment.

Two companies in Ocean 14 Capital’s investment portfolio are contributing to improved aquaculture sustainability. SyAqua, based in Singapore, is revolutionising shrimp genetics and alternative feeds to preserve wild fish stocks. In China, 60% of hatcheries are SyAqua customers and the company delivers some of the most competitive industry results.

AquaExchange is a technology platform analysing data on shrimp and fish production. Understanding the data helps companies to reduce crop expenses, manage crop finance and automate the procurement and harvesting for aquaculture farmers. AquaExchnage currently automates large areas of shrimp farming operations in India, some12% of the domestic industry. Ultimately, their work improves the productivity and profitability for the aquaculture ecosystem.

Complementing these private sector efforts is a £3 million ($4 million) research initiative led by the University of the West of Scotland and partnered by the University of Strathclyde is aiming to revolutionise shrimp farming in South East Asia. The three-year project is developing low-cost, real-time monitoring tools to help small-scale farmers detect pathogens, monitor water quality and predict environmental threats using biosensors and AI-driven climate modelling.

By working closely with local farmers in Vietnam and Thailand, the team ensures the technologies are practical, affordable and gender-inclusive. The tools are designed to reduce mortality rates and boost productivity – offering a scalable blueprint for sustainable aquaculture across the region and beyond.

As global demand for shrimp continues to rise, the need for more sustainable, transparent and resilient aquaculture systems has never been greater. From major financial backing and cutting-edge genetic and digital innovations to grassroots-level research supporting smallholder farmers, a range of coordinated efforts are converging to transform shrimp farming in South East Asia.