What is Blue Economy? Here's the Meaning and How It Works

5 days ago 12

November 11, 2024 | 09:27 pm

TEMPO.CO, Jakarta - The emerging blue economy framework continues to expand as more countries seek to join the movement. Previously, the World Bank stated that the global importance of the blue economy is expected to double to $3 trillion by 2030, indicating its dominant force in various maritime sectors. 

This article follows the ideas of a blue economy, its benefits, and its challenges, as highlighted by the World Bank and the LSE. 

What is the Blue Economy? 

The blue economy refers to economic ventures closely linked to the oceans, seas, and coasts, encompassing various activities such as fisheries, maritime transport, renewable energy, tourism, climate change, and waste management. 

According to the World Bank, the blue economy is "the sustainable use of ocean resources for economic growth, improved livelihoods and jobs, and the health of ocean ecosystems.

Quoting the United Nations, the Center for the Blue Economy further defines the project: "It is now a widely used term around the world with three related but distinct meanings - the overall contribution of the oceans to economies, the need to address the environmental and ecological sustainability of the oceans, and the ocean economy as a growth opportunity for both developed and developing countries.

During its early introduction, questions about the difference between the green economy and the blue economy were common at certain environmental conferences. In general, the blue economy has its fair share of origins in the green economy concept, which emphasizes environmental issues from an economic perspective. 

While green economy strategies focus on the "green" sectors of energy, transportation, and small parts of agriculture and forestry, the blue economy focuses on fisheries, ocean, and coastal resources, according to the Commonwealth Foundation. 

Benefits and Challenges of the Blue Economy 

Within the market framework, the blue economy benefits both local and regional development through job creation and economic growth. 

In its paper on this emerging economic initiative, the OECD projects that by 2030, the blue economy could create more than 40 million jobs and contribute more than US$3 trillion to global economic growth. This expansion would be driven largely by ocean-based industries, which account for 2.5% of total global gross value added.

The blue economy movement will also benefit non-market sectors by providing ecosystem services such as food and raw material supply, carbon sequestration, water purification, biodiversity conservation, and recreational opportunities.

In the fight against climate change, the oceans have gained popularity for their ability to provide renewable energy. In addition, the joint economic venture can also provide better management of marine ecosystems, lower emissions, and overall healthier standards. 

On the other hand, the marine ecosystem is a vulnerable frontier, constantly threatened by human activities that drive environmental degradation. According to UNRIC, threats to the ecosystem include pollution, ocean warming, acidification, eutrophication, and fisheries collapse. 

With continued global cooperation and responsible practices, the blue economy holds great promise for economic growth. However, the path to fully realizing a thriving blue economy requires addressing challenges such as pollution, ecosystem degradation, and climate change.  

World Bank | LSE

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