In recent years, we have faced numerous challenging risks that have strained the world and humanity, including the COVID-19 pandemic, the Russia-Ukraine war, and the resulting energy crisis, unfortunately leading to insufficient actions taken on urgent matters like climate change.

With the awareness that every minute of delay works against humanity, there is a serious quest emerging on the international stage for new tools and policies that can contribute to both preserving the planet and establishing sustainable development. A topic that has come to the forefront recently and doesn’t seem to easily lose its place on the agenda is the "blue economy."

The blue economy, perceived as the sustainable use and preservation of ocean and marine resources for establishing economic growth, is gaining increasing attention in the context of combating various risks our planet faces, including poverty reduction, food security and climate change. The World Bank defines the blue economy as the sustainable use of ocean resources for maintaining the health of ocean ecosystems while contributing to economic growth, livelihood improvements and job creation. The European Commission extends this definition to encompass all financial activities related to oceans, seas and coasts under the umbrella of the blue economy, thereby indicating its interconnectedness and its coverage of a wide range of developing sectors.

The blue economy is viewed as a solution to the global, environmental, economic and social crises of the past decade, grounded in the concept that oceans and water resources can be sustainably utilized to enhance economic prosperity. With the world population projected to exceed 9 billion by 2050, undoubtedly leading to significantly increased demands for food, energy and raw materials compared to today, the inclusion of oceans in the economic growth equation is deemed essential. However, oceans are already under serious threats due to overexploitation, pollution, loss of biodiversity and climate change. Thus, a conscious effort must be made first to prevent ocean pollution and subsequently enhance their economic yields. In this regard, addressing the relationship between the blue economy and climate change is considered highly beneficial and crucial.

Blue economy is working against us

Among the United Nations’ Sustainable Development Goals (SDGs), "SDG 14: Life below water" focuses on the conservation and sustainable use of oceans, seas and marine resources, presenting a framework for addressing these challenges. The goal of SDG 14 is to establish healthy oceans and seas while promoting economic growth, social inclusiveness and the preservation or enhancement of livelihoods. However, achieving this goal requires global action and international cooperation, as well as the implementation of legal and institutional frameworks, similar to the challenge posed by climate change. Climate change, undoubtedly one of the Earth’s greatest challenges, continues to top the list of crises that demand solutions, and the Mediterranean region stands out with its vulnerable position and the adverse effects of the climate crisis. Hence, addressing both issues collectively through joint efforts of all countries is an undeniable reality.

Digging deeper into the matter, one of the most significant impacts of climate change on the blue economy is ocean acidification. Increasing carbon dioxide levels in the atmosphere are absorbed by the oceans, leading to decreased pH levels and water acidification. This phenomenon can adversely affect marine organisms like shellfish and coral, struggling to build and maintain their shells and skeletons in acidic waters. Consequently, this can lead to a decline in fish and other living populations, negatively impacting the fishing industry. Additionally, rising sea levels can be considered another necessary consequence of climate change on the blue economy. Rising sea levels can damage infrastructure such as buildings, hotels and residences, make coastal areas less attractive for tourism, and lead to coastal erosion and floods. Moreover, rising sea levels can contribute to losing coastal habitats that provide essential ecosystem services like coastal protection, fisheries and carbon sequestration.

Climate change can also have a negative impact on the blue economy by causing extreme weather events such as heatwaves, droughts and storms. For example, heatwaves can reduce the quality and quantity of crops grown in coastal areas, droughts can lead to water shortages, and the fishing and aquaculture industries can become more challenging to operate.

When we consider the issue within the context of Türkiye, the Mediterranean is already experiencing the repercussions of rising sea levels, ocean acidification and the increasing frequency and intensity of extreme weather events, posing threats not only to the blue economy sectors that rely on a healthy marine environment but also to coastal communities. These adversities directly affect blue economy sectors such as fishing and tourism, leading to a decline in economic efficiency and potential negative consequences on the economy through channels like decreased productivity and job loss. At this juncture, the Mediterranean region is warming 20% faster than other areas, with sea surface temperatures already surpassing the global average. Moreover, considering that the Mediterranean hosts 18% of known marine species worldwide, the region faces significant risks of biodiversity loss and economic decline.

We must harness blue with green

Several measures can be taken to mitigate the effects of climate change on the blue economy. Among these, the most crucial is undoubtedly transitioning to low-carbon economic models. Additionally, investing in climate adaptation measures, such as constructing seawalls and other coastal defenses and enhancing the resilience of fishing and aquaculture industries to climate conditions, can be attractive in terms of adapting to climate change. Moreover, while striving to protect the blue economy, it can contribute to climate change mitigation alongside us by taking the proper steps. For instance, the restoration of marine ecosystems like coral reefs and seagrass beds within the framework of the blue economy can also contribute to carbon sequestration.

Despite challenges, the blue economy has the opportunity to contribute to climate change mitigation not only through natural solutions but also from different perspectives. For example, the blue economy can be crucial in transitioning to a low-carbon economy by providing clean energy from ocean resources such as wind, wave and tidal power. Furthermore, renewable marine energy like offshore wind can offer a clean energy source, and sustainable fishing and aquaculture can add value to production chains to establish food security. In the context of energy, it is known that over 25 offshore wind farms are under construction off the coasts of Italy, France and Greece. In this regard, a significant investment flow in the Mediterranean within the framework of the blue economy has been observed in recent times. The main drivers of this development are the European Commission’s "blue growth" strategy aimed at supporting sustainable growth in maritime economy sectors, efforts to enhance trade between Europe and Asia, the desire to increase international maritime traffic, the proliferation of offshore oil and gas contracts, and the growing demands of the increasingly affluent global middle-class tourists in the region.

While all these developments appear positive for the blue economy, there is a significant risk of causing serious harm to the valuable Mediterranean if steps taken and policies implemented are carried out without considering environmental concerns. For instance, due to the increased capacity of the Suez Canal, it has become possible for up to twice as many cargo ships to pass through the Mediterranean today. However, this increase has also brought about noise pollution and increased emissions in the Mediterranean. Similarly, although the number of cruise passengers has risen from 8.7 million to 30 million in the last decade, cruise ships are considered to be major contributors to air, noise and sea pollution.

Undoubtedly, at this point, it is necessary to contemplate how investments can be directed into this field. An example of recent times that demonstrates the importance given to blue economies and the utilization of financial instruments to unlock the economic potential in this field can be seen in India’s implementation of regulations concerning sustainable financial instruments. Like green bonds, which are already in high demand globally, India has also included blue bonds within the framework of national sustainable finance. In this context, the framework for blue bonds has been established as sustainable financing instruments for the sustainable maritime sector, including sustainable fisheries, sustainable water management, and more.

Especially in the Asia-Pacific region, which holds a significant position in the economies of developing countries, it is believed that the elements of the blue economy have considerable potential to attract investment in this field in the coming period. In this context, initiating investment planning in market segments that require relatively low investment, such as enhancing marine and river ecosystems and coastal resilience, is considered to be able to attract substantial private sector investment into the emerging blue economy. It is emphasized that for large investments such as climate-resilient and environmentally-friendly ports and offshore wind-based renewable energy, creating blended finance structures and implementing necessary regulations can provide significant return opportunities for private sector investors.

In this context, considering the significance of the blue economy for Mediterranean countries, it is possible to think that adopting a similar approach in the Mediterranean as in the Asia-Pacific countries would not only serve the national interests of the countries but also provide an opportunity for all regional nations to promote their development, establish economic growth and support environmentally friendly actions. While some of the investments in this field may entail substantial cost elements, it should not be forgotten that these investments can be used to bridge the financing gap for sustainable development in the blue economy. At this point, the crucial aspect is understanding the distinct needs and preferences of all investors active in the financial markets. By creating appropriate investment tools such as funds, bonds and project financing structures, the right investors can be attracted to the blue economy. This would set in motion national and international financial resources for this field, enabling it to access sufficient levels of long-term capital in harmony with the Paris Agreement and SDGs.

Türkiye should be pioneer

Türkiye holds a position as an actor in the blue economy of the Mediterranean region. The region, with its reliance on the sea for diverse industries such as fishing, aquaculture, tourism and renewable energy, possesses immense potential for developing the blue economy. In fact, the World Wide Fund for Nature-Türkiye’s (WWF) 2017 report titled "Reviving the Mediterranean Economy" estimated the economic value of activities related to the blue economy in the Mediterranean at $450 billion annually. Moreover, according to the report, coastal tourism alone generates $300 billion in annual revenue, followed by marine tourism at $110 billion. Fishing and aquaculture contribute roughly 2% of the gross domestic product (GDP) and generate approximately $8 billion annually. It wouldn’t be inaccurate to assume that these figures could be even higher today.

Türkiye benefits significantly from the diverse marine and coastal ecosystems of the Mediterranean, including important fishing and aquaculture areas, while also demonstrating the necessary commitment to ecosystem preservation. The country’s blue economy has been rapidly growing, increasing the value generated by sea-based industries, potentially creating thousands of jobs and supporting livelihoods in coastal communities. Additionally, Türkiye’s blue economy is supported by a robust maritime sector encompassing shipbuilding, repair and port activities. Considering the developments in green and sustainable finance markets, these advancements can have even more positive implications in the near future.

Türkiye is also taking strong and comprehensive steps toward the 2053 net zero emissions target. The country is actively addressing climate change risks faced by both the Mediterranean and other seas, demonstrating proactive engagement. Notably, a pilot wave energy plant project was conducted in Zonguldak in 2017. Recently, a protocol was signed between Israel’s Eco Wave Power (EWP) and Ordu municipality’s subsidiary OREN Ordu Energy to produce energy from Black Sea waves. The planned power plant, with a capacity of 77 megawatts and an approximate cost of $150 million, is set to be the largest wave energy plant globally and the first of its kind in Türkiye.

Türkiye’s seas hold immense potential to support sustainable development and economic growth through the blue economy. Recognizing this, the nation is pioneering in supporting sustainable blue economy practices in its region. Hosting and presiding over the 22nd Conference of the Parties (COP22) to the Barcelona Convention for the Protection of the Marine Environment and Coastal Regions of the Mediterranean on Dec. 7-10, 2021, Türkiye successfully fostered valuable collaborations with stakeholders, forming critical partnerships for ongoing endeavors. Continued momentum is expected in this field.

Preserving the natural environment offered by geography and utilizing its opportunities in an environmentally friendly manner is crucial for a healthy future for our planet and succeeding generations. Türkiye’s efforts to promote sustainable blue economy practices not only contribute to marine resource preservation but also yield positive outcomes for regional economies, environments and inhabitants. Collaborative efforts must persist to support sustainable blue economy practices, with Türkiye’s leadership inspiring other nations to follow suit, especially in the Mediterranean region.

*Professor based in Türkiye

**Expert at Türkiye’s Ministry of Treasury and Finance