The Blue Economy (BE) imperative for the Indian G20 Presidency gets reinforced by the fact that the BE has a separate connotation for the global south, as compared to the global north. This difference is often not understood adequately. India’s taking over the G20 presidency from Indonesia is significant that makes India the middle of the triad (Indonesia, India, and Brazil) from the global south to preside over the G20. It is up to the Indian presidency therefore to highlight the significance of the BE from the global south perspective.
Till now, there is hardly any universally accepted definition of the BE. While a more generic definition from the European Commission relates BE to all the economic activities pertaining to the marine and the coastal ecosystem, definitions from the World Bank and the UN incorporate the sustainability dimension to the BE discourse.
Be that as it may, the global importance of the BE can be gauged from the fact that 80 per cent of world trade happens using the seas, 40 per cent of the world’s population live near coastal areas, and more than 3 billion people access the oceans for their livelihood. The value of the “natural capital” of the BE is estimated at around USD 25 trillion, with the annual value of produced goods and services estimated to be US $2.5 trillion per year, equivalent to the world’s seventh largest economy in gross domestic product (GDP) terms.
The importance of the Ocean for the Global South
The importance of the oceans for the global south can be understood from the roles it plays in human livelihoods, through the provisioning of the various ecosystem services on which the coastal community is dependent.
The Millennium Ecosystem Assessment talks of the services provided by the blue economy through the organic functioning of its natural ecosystem. These can be classified as provisioning services (fisheries, building materials, food, etc), regulating services (carbon sink and carbon sequestration, erosion prevention, extreme event moderation, etc) cultural services (tourism, recreational, aesthetic, and spiritual benefits) and supporting services (life-cycle maintenance for both fauna and local, element and nutrient cycling).
The Economics of Ecosystems and Biodiversity (TEEB) termed these ecosystem services as “GDP of the poor” as the majority of the poor’s livelihoods and incomes are drawn from the ecosystem services. The same is true for the poor coastal communities of the global south. Apart from that, the ocean being the next big economic frontier, with rapidly growing numerous ocean-based industries, it is poised to be the future growth driver of the global south through activities like wind energy, offshore aquaculture, seabed mining and marine genetic biotechnology.
The Economics of Ecosystems and Biodiversity (TEEB) termed these ecosystem services as “GDP of the poor” as the majority of the poor’s livelihoods and incomes are drawn from the ecosystem services.
In this context, it needs to be kept in mind that South Asia has been a major contributor to the global food basket through its fisheries sector, with the artisanal fisheries in the Bay of Bengal region, contributing more than 80% of marine fish production. Fishing sector employs 15 million people in India and ranks second (6.3%) in the world’s fish produce (INR 10 billion in 2015–16). Further even, Coastal and Maritime Tourism that represents 5% of the world GDP and is expected to generate job opportunities for approximately 8.5 million people by 2030 (7 million employed in 2010) has been a prominent sector providing large-scale employment and livelihoods in south Asia.
Financing SDG 14
Achieving the BE potential is a long way away. This is primarily because of the lack of investment for innovation towards blue economy with regards to financial and human capital. Recent survey by KPMG identifies the UN Sustainable Development Goal (SDG) 14: Life Below Water, as one of the least prioritised SDGs from the perspective of the private sector, with only 18 percent of companies prioritising it.
While an estimated USD 174.52 billion per year is needed to fund SDG 14, barely USD 25.05 billion is spent annually indicating a funding gap of US$149.02 billion per year. This major financial deficit does not augur well with world’s growing vulnerable population which are dependent on oceans for their livelihood. It is therefore essential for government and organisations to focus on innovation and expansion of blue economy that can provide a clear pathway towards a low-carbon sustainable future. More innovative “blue financial products” like blue bonds and loans, and blue derivative products will have to be thought of, to finance SDG14.
Indian G20 presidency: An opportunity
Given the global importance of the BE, and more so for the vulnerable ocean-dependent communities for the global south, India’s G20 Presidency brings about the unique opportunity to prioritise the BE for the purpose for growth, green economy and social equity.
India’s engagement in the Blue Economy has been rising, with its active involvement in international and regional dialogues on the Blue Economy, maritime and marine cooperation.
There is a concern that without the elaboration of specific principles or guidance, national blue economies, or sustainable ocean economies, are likely to focus on the pursuance of economic growth, with little attention paid to environmental sustainability and social equity. India’s engagement in the Blue Economy has been rising, with its active involvement in international and regional dialogues on the Blue Economy, maritime and marine cooperation.
From that perspective, while the seas absorb almost a third of the carbon dioxide emitted annually, the iron levels present helps in the development of phytoplanktons, a key component of carbon storage. Further, despite the maintenance costs and scalability issues, the wave energy potential can be source of green energy.
In this context, PM Modi’s call for LIFE (Lifestyle for the Environment) at COP26 in Glasgow on 1st November 2021 becomes extremely important. This is for the very important provisioning, supporting and regulating services that form the basis of human survival that the G20 under Indian Presidency should seriously take up the conservation of the marine and coastal ecosystems. It needs to be appreciated that the BE is not merely an altruistic intent, but a development imperative from the perspective of the global south.
This commentary originally appeared in India Today.
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