‘Climate stress, policy fragmentation, trade dynamics threaten $2.2 trillion ocean economy’
• UNCTAD proposes $2.8tr ‘Blue Deal’ investments for sustainability
The United Nations Conference on Trade and Development (UNCTAD) has warned that climate stress, policy fragmentation, and shifting trade dynamics are posing a serious threat to the long-term viability of the global ocean economy valued at $2.2 trillion in 2023.
As such, UNCTAD urged governments and industry leaders to act decisively by modernising infrastructure, tightening regulations, and fostering international cooperation to preserve ocean-driven prosperity and subsequently improve the global economy.
The UN body in a new report, the June edition released yesterday, casts a spotlight on ocean-based industries such as shipping, tourism, fisheries and marine energy, which together accounted for seven of global trade in 2023, underscoring the ocean’s vital role in food systems, energy security, and supply chain resilience.
According to the report, in 2023, ocean trade in goods and services totalled $2.2 trillion, with $900 billion in goods and $1.3 trillion in services.
The report stated that coastal and maritime tourism alone generated $725 billion, making it the single largest segment, followed by maritime freight, ships and port equipment, and a growing share of high-tech exports like renewable energy machinery and marine pharmaceuticals.
UNCTAD stated that climate-related droughts and regional tensions are causing delays and longer shipping distances, increasing volatility in maritime transport.
According to the report, these challenges are expected to persist into 2025, raising costs, increasing GHG emissions and undermining supply chain reliability, especially for Small Island Developing States (SIDS) and Least Developed Countries (LDCs).
The report also pointed out that pressure on over-exploited wild fish stocks is expected to continue, noting that these initiatives must be governed responsibly to ensure sustainability and promote investment in scalable ocean-based solutions.
UNCTAD said environmental pressures are compounding trade risks, noting that sea-level rise, plastic pollution, and biodiversity loss are already affecting port operations and coastal infrastructure, especially in vulnerable nations.
Meanwhile, the report highlighted new tariffs and trade tensions that threaten to fragment maritime supply chains and deter investment in sustainable sectors.
UNCTAD warned that disruptions in global shipping routes due to climate-related droughts and regional instability are driving up costs, lengthening transit times, and increasing greenhouse gas emissions.
The UN body said despite growing awareness of the ocean economy’s importance, financing remains woefully inadequate. According to the report, in 2022, ocean-related official development assistance (ODA) stood at just $2.4 billion, a fraction of what’s needed to meet global sustainability targets.
To bridge this gap, UNCTAD is promoting a “Blue Deal”, a call for targeted public and private investments of around $2.8 trillion across four priority areas, which are mangrove conservation and restoration, decarbonisation of international shipping and fisheries, sustainable ocean-based food and non-food production, and coastal and offshore wind energy.
The UNCTAD said this level of investment is critical for scaling solutions, ensuring inclusive and sustainable trade outcomes and achieving the full implementation of SDG 14 by 2030 and beyond.
