Blue Economy under Indian G20 Presidency: Not an altruistic intent, but a development imperative

 Given the significance of the Blue Economy on a global scale, India's G20 Presidency presents a special opportunity to prioritise the BE for the purposes of economic development, environmental sustainability, and social fairness.

The necessity of the Blue Economy (BE) for India's G20 Presidency is further emphasised by the fact that the global south has different associations with the BE than does the global north. Inadequate understanding of this distinction is common. India's assumption of Indonesia's G20 presidency is notable because it places India in the centre of the trio of countries from the global south that are now in office as G20 presidents: Indonesia, India, and Brazil. In order to emphasise the BE's importance from the perspective of the global south, it is the responsibility of the Indian presidency.

Currently, there is hardly any BE definition that is agreed upon by everyone. While the European Commission's more general definition of BE refers to all economic activities related to the marine and coastal ecosystem, UN and World Bank definitions include the sustainability aspect of BE discourse.

However, the fact that more than 3 billion people depend on the oceans for their livelihood, that 40% of the world's population lives close to coastal areas, and that 80% of global trade takes place through the seas all point to the BE's global significance. The annual value of produced goods and services in the BE is estimated to be $2.5 trillion, which is equivalent to the seventh largest economy in terms of GDP. The value of the BE's "natural capital" is estimated to be approximately USD 25 trillion.

The importance of the Ocean for the Global South

The roles that the oceans play in human livelihoods by providing the various ecosystem services that the coastal community depends on shows how important the oceans are for the global south.

The Millennium Ecosystem Assessment discusses the services provided by the blue economy as a result of the natural ecosystem's organic functioning. Supporting services (life-cycle maintenance for both fauna and local, element and nutrient cycling), provisioning services (fisheries, building materials, food, etc.), regulating services (carbon sink and carbon sequestration, erosion prevention, extreme event moderation, etc.), and cultural services (tourism, recreational, aesthetic, and spiritual benefits) are examples of these.

Because these ecosystem services account for the majority of the livelihoods and incomes of the poor, the Economics of Ecosystems and Biodiversity (TEEB) referred to them as the "GDP of the Poor." The poor coastal communities in the global south also fall into this category. Aside from that, the ocean is poised to be the global south's future growth driver through activities like wind energy, offshore aquaculture, seabed mining, and marine genetic biotechnology. The ocean is the next big economic frontier, and many ocean-based industries are growing quickly.

The Economics of Ecosystems and Biodiversity (TEEB) termed these ecosystem services as “GDP of the poor” as the majority of the poor’s livelihoods and incomes are drawn from the ecosystem services.

 In this context, it is important to keep in mind that South Asia's fisheries sector has been a significant contributor to the global food basket. The artisanal fisheries in the Bay of Bengal contributed more than 80% of marine fish production. India's fishing industry employs 15 million people and produces second-most fish (6.3 percent) worldwide (INR 10 billion in 2015–16). Additionally, coastal and maritime tourism, which accounts for 5% of the world's GDP and is anticipated to provide employment opportunities for approximately 8.5 million people by 2030 (from 7 million in 2010), has been a significant source of large-scale employment and means of subsistence in south Asia.

Financing SDG 14

The BE potential is still a long way off. This is primarily due to a lack of funding for financial and human capital innovation in the blue economy. According to a recent KPMG survey, the UN Sustainable Development Goal (SDG) 14 is as follows: Life Below Water is one of the SDGs with the lowest private sector priority, with only 18 percent of businesses giving it priority.

SDG 14 needs an estimated USD 174.52 billion annually to be funded, but only USD 25.05 billion is spent annually, indicating a US$149.02 billion funding gap annually. With the world's growing vulnerable population that depends on the oceans for their livelihood, this significant financial deficit does not bode well. Therefore, it is essential for the government and other organizations to concentrate on the development and expansion of the blue economy, which has the potential to provide a clear path toward a sustainable future with low carbon emissions. To finance SDG14, more creative "blue financial products" like blue bonds, loans, and derivatives will need to be considered.

Indian G20 presidency: An opportunity

India's G20 presidency presents a one-of-a-kind opportunity to prioritize the BE for the purposes of growth, the green economy, and social equity in light of the BE's global significance, particularly for the vulnerable ocean-dependent communities in the global south.

India’s engagement in the Blue Economy has been rising, with its active involvement in international and regional dialogues on the Blue Economy, maritime and marine cooperation.

There is a concern that national blue economies, or sustainable ocean economies, are likely to prioritize economic growth over environmental sustainability and social equity without the formulation of specific principles or guidelines. India's active participation in international and regional dialogues on the Blue Economy and maritime and marine cooperation has increased its involvement in the Blue Economy.

From this vantage point, despite the fact that the seas absorb almost a third of the annual carbon dioxide emissions, the presence of iron aids in the growth of phytoplankton, an essential component of carbon storage. In addition, the wave energy potential can be a source of green energy despite the costs of maintenance and scalability issues.

PM Modi's request for LIFE (Lifestyle for the Environment) at COP26 in Glasgow on November 1, 2021, becomes extremely significant in this context. The G20 should seriously take up the conservation of marine and coastal ecosystems under the Indian presidency because of the very important services that provide, support, and regulate human survival. From the global south's point of view, it's important to understand that the BE is more than just a goodwill gesture.