The blue economy – the value of products and services generated with and by our oceans and seas – is set to grow faster than the established economy by 2030, according to estimates from the Organisation for Economic Co-Operation and Development (OECD), and therefore investments into this area are increasingly becoming mainstream.
See also: Turning the tide on water quality
Earlier this year, fund managers predicted a record year for issuance in fixed income markets for bonds focused on ocean health and water security, while water has been flagged as a key theme for many equity portfolios, with funds solely investing in this area. Indeed, the OECD’s report – The Blue Economy in Cities and Regions – predicts the blue economy could reach $3trn (£2.36trn) by 2030 if barriers to development are addressed.
As with any relatively immature asset class, experienced investors understand the opportunity of allocating to this area in its early development. But, and perhaps more pressingly for some, they also understand the urgency.
See also: Investors call on ESG data providers to develop more detailed ocean-related data points
The OECD report – based on the findings of a global survey of more than 80 cities, regions and basins – highlights the damaging effects of climate change on the blue economy and its impact on the cities and regions most exposed, as well as shedding light on the link between the blue economy and water security.
Read the full article in PA Future’s June 2024 digital magazine.
