4 reasons why 2025 can be a breakthrough year for the regenerative blue economy

Our global economy is underpinned by the ocean. Over 80% of global trade in terms of volume is transported by sea, the ocean supports about 500 million people through employment in small-scale fisheries and ancillary activities alone, and more than 3 billion people depend on it for food security.

Critical infrastructure in and around the ocean is essential for increasing the use of marine space, even as complex ocean ecosystems continue to provide critical functions – generating 50% of the world’s oxygen, and absorbing over 25% of human-caused carbon dioxide.

Simply put, transitioning to a nature-positive, inclusive, and sustainable economy is not achievable without a safe and thriving regenerative blue economy. Yet, despite growing in recent years, ocean investments currently amount to only a fraction of the estimated total of $1.5 trillion in sovereign (and $1 trillion in private) market funding that will be required by 2030.

Finance has a critical role to play in addressing the cumulative ocean finance gap, and supporting the transition of the blue economy to more sustainable practices. The next five years will be crucial for reshaping the trajectory of the regenerative blue economy; the Blue Economy and Finance Forum (BEFF) and the Third UN Ocean Conference (UNOC3) both take place in June of this year.

Here are four reasons why 2025 could be the year we achieve real movement for the regenerative blue economy:

Many organizations are already feeling the impacts of degraded ecosystems, from declining crop and fishing yields, to supply chain disruptions, and damage to physical infrastructure.

It is not surprising that 3,000 representatives from businesses and financial institutions attended the UN Biodiversity Conference (COP16) in Cali, Colombia in November 2024 – three times more than the previous summit. This demonstrates the private sector's keenness to align portfolios with nature-positive outcomes.

Businesses and institutional investors are increasingly recognizing that blue investments can generate attractive strategic and financial returns. A sustainable ocean alone would deliver an estimated net positive economic benefit of more than $15 trillion, representing about 15% of global GDP. We have moved beyond the need to make the case for “why” invest in the ocean, to the “how” and “where.”

Investment in nature and the blue economy also gives businesses and investors an opportunity to capitalize on growth in critical infrastructure, while driving the broader energy transition and generating social and environmental benefits. For example, the World Economic Forum’s Nature Positive: Role of Ports report, supported by Lloyd’s Register Foundation, showcases the economic opportunities for ports that are not only economically and socially beneficial, but also “nature positive.”

Scaling up innovative mechanisms and creating partnerships that align economic incentives with environmental goals will be critical for unlocking new financing.

Many financial mechanisms already available are now maturing. Standard Chartered’s report Towards a Sustainable Ocean: Where There’s a Will, There’s a Wave maps some of the most natural finance vehicles tailored to the specific needs of the various sectors of the ocean economy. This includes everything from blue loans and bonds, to KPI-linked instruments, and environmental credit schemes. One standout model is blended finance, where the public and private sectors join forces in the same capital structure.

The report points to a near doubling of funds allocated to marine conservation in just a few short years, thanks to a financial innovation dubbed "debt-for-nature," or “debt-for-sustainability” swaps – transactions where countries can receive financial relief in exchange for delivering on sustainability goals, demonstrating how quickly innovative finance can scale up and sustain impactful projects.

One example of this is a unique debt conversion project for marine conservation in the Bahamas, which Standard Chartered supported as the sole lender – helping unlock $124 million in marine conservation funding to support the country in effectively managing nearly 6.8 million hectares of Marine Protected Areas.

Ocean-related policies are increasingly being put in place by municipalities, countries, and regions to accelerate progress on sustainability. These range from pollution restrictions to sustainably managed fishing licensing.

At a global policy level, Target 3 of the Global Biodiversity Framework calls for protecting at least 30% of the planet’s land and ocean by 2030 (30x30), with implementation fostered by country-level action plans. Global initiatives that aim to improve the governance of the broader ocean, such as the International Seabed Authority, are also driving sustainable ecosystem progress.

These developments are positive for the ocean, and have the potential to help overcome barriers to investment. However, without effective regulation and management of the high seas, which cover over two-thirds of the ocean and about half of Earth's surface, achieving the goals of the Global Biodiversity Framework will be challenging. The ratification of the High Seas Treaty is therefore critical, and the 2025 UN Oceans Conference will be a key milestone for advancing and addressing this.

The ocean innovation space has never been as rich with investable solutions as it is now, from seed- and venture-stage opportunities, to growth equity, to new, large-scale models for ocean infrastructure investment. After analyzing over 300 opportunities, Standard Chartered’s report revealed 70 categories of promising, actionable solutions in such areas as ocean renewables, ocean tech, sustainable fishing, blue carbon, and waste control.

At the other end of the spectrum of larger, liquid investment instruments, the blue bond market is gaining traction – it has trebled over the past five years, according to Bloomberg. Corporate issuers include DP World, which in December 2024 issued the world’s first MENA Blue Bond; the $100 million instrument will fund sustainable projects cutting across marine transportation, port infrastructure, marine pollution, as well as nature- and water-positive initiatives.

Finally, in addition to direct investment opportunities, there are a growing number of dedicated ocean funds emerging. They invest in a portfolio of ocean opportunities across the risk-return spectrum. These funds are increasingly attracting institutional investors and private family office capital, and are important constituents of the financial sector that can mobilize capital in size.

Just three weeks into 2025, there are already signs that the tide is turning for the regenerative blue economy. This morning, Standard Chartered announced it is committing to the WEF- and Ocean Risk and Resilience Action Alliance (ORRAA)-led #BackBlue initiative, joining Deutsche Bank, AXA XL, WTW, and Palladium in ensuring that a regenerating and sustainable ocean has a seat at the table in finance and insurance decisions.

Two key milestone events in 2025 will present unique opportunities to further mobilize collective action. BEFF and UNOC3 will bring key players from across the ocean ecosystem together to apply their expertise, assets, and energy in pursuit of a common goal of protecting and supporting the ocean economy.

We cannot miss this opportunity to ensure that 2025 becomes the year to scale up capital directed at the regenerative blue economy – and take a vital step towards creating a healthier, more resilient planet for future generations.