Professor Zuzy Anna during her presentation.

Current practices within ocean economy are not sustainable. Ways to understand how to achieve and finance sustainable ocean economy (SOE) are required. Studies were conducted by reviewing existing literatures and data to understand the overall issues in financing SOE and to draw good practices worldwide in financing SOE. The studies assess how economic instruments and finance mechanisms can be applied to realize SOE. Professor Zuzy Anna (Faculty of Fisheries and Ocean Studies, Universitas Padjajaran) and Andre Aquino (World Bank) presented their studies at a live FKP Webinar on Thursday, 26 March 2020.

Professor Zuzy Anna presented the general issues in achieving and financing SOE. Of several findings, the study found that maritime countries do not adequately finance the conservation and sustainable management of their ocean resources. Another finding shows how developed countries are not adequately monitored for how they produce higher emissions that affects oceans and negatively impacts developing countries’ ability in benefiting from the ocean. Her study also shows the need to properly address polluters and beneficiaries with fiscal instruments in tackling externalities. With the scale of SOE globally and the significant benefits for the private sector, international and public-private cooperation are required. Furthermore, her study noted the risks within ocean economy to be addressed by proper insurance schemes. Lastly, in this preliminary study, Anna pointed out the lack and need of data and evidence on impact of financing on sustainability.

Andre Aquino during his presentation.

Complementing Anna’s study, Andre Aquino showed some financing schemes around the globe supported by the World Bank. Brazil has a Blue Platform, a framework used to coordinate finances required in sustainable financing. Seychelles has Blue Bonds released by the government to provide loans and grants to support infrastructure for and research on SOE. Mozambique implements a co-management agreement for their marine national park, involving local government, communities, and private sectors. To conclude, Aquino pointed out the need of understanding why financing for SOE is required and how to better manage existing funding before getting into innovations and enforcing larger flows of funding.

For the complete presentation and Q&A session, please refer to the video and materials provided.