Oceans, representing up to 6% of global economy, enter G20 debates

Economically strategic and crucial in combating the climate crisis, oceans have gained prominence on the agenda of the world’s largest economies this year with the creation of a dedicated engagement group within the G20. The so-called Oceans 20 (O20) aligns with one of Brazil’s priorities during its presidency of the international forum: sustainable development in economic, social, and environmental dimensions. Civil society organizations are discussing within this new body a model of international cooperation that recognizes the importance of the seas for global economies and ecosystems.

The goal of the O20 is to establish a dialogue to ensure the sustainability of the oceans—the so-called “Blue Economy”—and to debate topics such as their relationship with the climate; high seas conservation and governance; safeguarding coastal livelihoods; pollution; and ocean protection.

The estimated value added to the ocean economy by 2030 is $3 trillion, representing 5% to 6% of the real global economy and providing 40 million direct jobs, according to the Organization for Economic Cooperation and Development projections.

“According to a recent OECD study, if the ocean were a country, it would be the seventh-largest economy in the world,” said Simone Pennafirme, of the UNESCO Chair for Ocean Sustainability and one of the O20 coordinators. “Elevating the ocean’s profile on the G20 agenda is not only necessary but also an opportunity for global sustainable development.”

According to the expert, five priorities have been outlined for the group: addressing the climate crisis and promoting a just energy transition; seeking social equity through the recognition of Indigenous peoples and traditional communities and access to renewable energy and sustainable food systems; prioritizing ocean conservation and biodiversity; leveraging scientific and technological development; and strengthening the implementation of multilateral agreements and global governance and collaboration.

In July, the O20 will send suggestions and demands from civil society to the G20’s Sherpa and Finance tracks. For the financial track, the engagement group will present a document on July 22 with recommendations ranging from the need to develop mechanisms to invest in ocean-based solution projects to ways to encourage support from multilateral development banks, wealth funds, and governments.

For the Sherpa track, recommendations will be presented on July 4 and address Biodiversity Beyond National Jurisdiction (BBNJ). The O20 advocates for countries to ratify the High Seas Treaty, an international agreement signed at the UN, by at least the third United Nations Ocean Conference, scheduled for June 2025 in France.

“It is a significant victory to include the oceans at the center of G20 debates. Now, the challenge is to ensure that the engagement group continues under the presidency of future countries. To achieve this, it is necessary to raise interest in an already crucial topic,” said Gustavo Westmann, diplomatic advisor to the General Secretariat of the Presidency, who participated in the creation of the O20.

One of the strategies to create this engagement is a series of events called Ocean Dialogues. In these events, experts and decision-makers will gather to discuss topics such as opportunities for marine conservation and pathways to a sustainable economy. The insights from these meetings will serve as a basis for formulating the O20’s final communiqué.

Another path to making Oceans 20 a permanent group within the G20 is through collaborations with the G7, which brings together the world’s seven largest economies. This connection is facilitated by the National Institute of Oceanographic Research (INPO), which recently qualified as a social organization under the Ministry of Science, Technology, and Innovation.

“The aim is to make the O20 a permanent group, ensuring, whenever possible, complementarity with efforts being undertaken within the G7’s working group on the Future of the Seas and Ocean Initiative [FSOI],” said Janice Trotte-Duhá, director of infrastructure and operations at INPO.

“INPO can bridge distances, expand this dialogue, and structure a new model of international cooperation where the social impact of our actions is the top scientific priority,” she added.

Oceans are also a pillar of the Climate and Environmental Sustainability Working Group, coordinated by the Ministry of Environment. Ana Paula Prates, director of the Ocean and Coastal Management Department, said that there are three main priorities for the government.

The first is a recommendation for all countries to undertake Marine Spatial Planning (MSP) based on an ecosystem approach, viewing it as a tool for decarbonization. The second is the inclusion of the ocean and coastal zones in countries’ climate commitments, from Climate Plans to Nationally Determined Contributions (NDCs).

Thirdly, the group also proposes ratification of the High Seas Treaty. Last year, its terms were signed under the legal framework of the United Nations Convention on the Law of the Sea, and now countries need to ratify it—including Brazil. At least 60 nations need to endorse the treaty, but so far, only six have done so, and none are part of the G20.

“The ocean is the planet’s great climate regulator, and little is said about this. We need actions not just because we want to conserve biodiversity but because the ocean needs to be healthy to help us,” Ms. Prates said. “Viewing the entire planet as a whole is very important, and we cannot ignore 71% of it.”

In 2021, the UN established this as the Decade of Ocean Science, with mitigation policies in place until 2030. Calculations by the Intergovernmental Panel on Climate Change (IPCC) indicate that the oceans have been warming globally and steadily since 1970, absorbing over 90% of the excess heat in the climate system. These impacts have contributed to water acidification, changes in the geographical range of marine species, and seasonal activities in their habitats.

Professor Alexander Turra of the Oceanographic Institute of the University of São Paulo (USP), who leads the UNESCO Chair for Ocean Sustainability, said that the seas are affected by the three major planetary crises: climate change, biodiversity loss, and pollution. However, he notes that the oceans are also essential in addressing these issues.

“We see habitat suppression, threats to exotic species, overfishing, and excessive use of natural resources. All this creates a mix of degradation that causes us to lose great opportunities,” Mr. Turra said.

Regarding cooperation, Israel de Oliveira Andrade, a marine economy specialist linked to the Institute for Applied Economic Research (IPEA), highlighted the importance of focusing on the geopolitics of the South Atlantic and Brazil’s leadership role in this area.

“Maintaining peace, surveillance, and cooperation in the region means continuing to contribute to the safe access of maritime transport and international trade in the South Atlantic, an ocean that also hosts submarine cables responsible for international communication, including the internet,” he said.

The researcher also pointed out that the so-called Blue Amazon—a concept created by the Navy to designate the country’s jurisdictional waters, including the territorial sea, exclusive economic zone (EEZ), and waters extending to the continental shelf—has been the subject of several international interests. This is an oceanic territory adjacent to the Brazilian coast, smaller in size but comparable in complexity to the Amazon, hence the name.

In 2023, the Blue Amazon concentrated 95.1% of the oil extracted in the country, according to the National Petroleum Agency (ANP), with 76.07% from pre-salt and 19.03% from post-salt.

Domestically, the policies of the Brazilian Development Bank (BNDES) reflect the reorientation towards the sea. In January this year, the BNDES Azul (Blue BNDES) was created, comprising initiatives aimed at socio-environmental protection, ecological and energy transition.

The bank has around R$22 billion in “blue projects” in its portfolio. The amount is distributed among oil and gas, with R$13.6 billion allocated to docking, support vessels, shipyards, and tankers; ports, terminals, and support vessels (R$6.5 billion); maritime transport (R$1.2 billion); marine and coastal tourism (R$296.7 million); and other instruments, such as mapping for fishing (R$15 million).

“We have significant expertise for vessels; BNDES built a local content methodology assessment for Tamandaré-class frigates and the Antarctic support vessel. From a credit perspective, the bank is one of the main managers and operators of the Merchant Marine Fund, and the same applies to port infrastructure,” said William Nozaki, coordinator of the bank’s technical advisory service.

By Victoria Netto, Camila Zarur for Valor International; translation by Carlos Dias

Original text available at: https://valorinternational.globo.com/g20-in-brazil/news/2024/06/24/oceans-representing-up-to-6percent-of-global-economy-enter-g20-debates.ghtml

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