When investors are deciding where to put their money, they ask fundamental questions about the nature of the opportunity, its risks, and the expected return. When it comes to the ocean, the answer to the last question is particularly compelling: investing in a resilient and sustainable blue economy offers immense environmental, social, and financial returns.

Historically, the ocean has been treated as an open-access resource to be fished, drilled, polluted, and, ultimately, forgotten. This outdated view is both dangerous and costly. As the world’s largest carbon sink, a biodiversity hotspot, and a climate regulator, the ocean underpins food systems, economic growth, and weather stability. Advancing regenerative ocean solutions thus provides a hedge against systemic instability by protecting one of Earth’s most powerful stabilizing forces.

Even though healthy marine ecosystems are productive economic assets that compound in value over time, they continue to be significantly underpriced. According to the OECD’s The Ocean Economy to 2050 report, the ocean economy has doubled in real terms from 1995 to 2020, when it contributed US$2.6 trillion to global GDP and employed more than 100 million people. If it was a country, the ocean would be the world’s fifth-largest economy. Marine sectors that build resilience – including offshore renewables, sustainable aquaculture, carbon sequestration and blue tech – are poised for rapid growth.

Forward-looking investors, recognizing that the ocean is the next frontier of innovation and climate adaptation, will act decisively. In fact, without urgent action, the opportunity may slip through our fingers. According to a report by the World Wide Fund for Nature, in collaboration with the Ocean Risk and Resilience Action Alliance and Metabolic, continued ocean degradation could jeopardize up to US$8.5 trillion of value at 66% of globally listed companies over the next 15 years. Commercial fisheries, coastal real estate, tourism, maritime infrastructure and ports are among the most exposed industries. A more sustainable trajectory could reduce this risk by more than US$5.1 trillion.

Investors tend to respond to climate and biodiversity risks by hedging their losses and closing their positions, causing market downturns. As a result, they have not yet taken advantage of the multi-trillion-dollar opportunity offered by a regenerative ocean economy. Less than 0.01% of total investments, less than 1% of international philanthropic funding, and less than 1% of official development assistance go to the ocean economy. Venture capital funding has also fallen short: for example, marine renewable energy start-ups received only US$300 million in 2023, even though scaling floating wind turbines, as well as wave and tidal energy, will require roughly US$32 billion in annual investment to help close the emissions gap by 2050.

It is not hard to imagine a future where healthy markets, thriving coastal communities, and flourishing ocean ecosystems create a virtuous cycle. Sustainable seafood production is possible only if habitats are protected from industrial pollution, wild catch and aquaculture are practiced responsibly, and consumer behaviour is aligned. But investors are stuck behind the “transition wall” – the mismatch between short-term return expectations and long-term value creation. Institutional capital is currently constrained by seven- to ten-year horizons and risk-averse structures.

Against this backdrop, high-net-worth individuals, whose wealth reached US$90.5 trillion in 2024, represent an untapped investor base. Moreover, baby boomers are expected to transfer US$83 trillion to their children and grandchildren over the next two decades, reshaping asset allocation. Many of these individuals manage their wealth through family offices, which are well-positioned to deploy capital across the spectrum, from philanthropic to market-rate, and have the tools and flexibility to generate returns while driving positive change in the ocean economy.

In June, the Blue Economy and Finance Forum in Monaco, a special event of the third United Nations Ocean Conference, demonstrated the investability of ocean-positive projects. The UN Climate Change Conference in Belém, Brazil, has built on that momentum, further positioning the ocean as both an important climate regulator and a vital investment opportunity.

To seize this opportunity, we must build the foundational architecture for ocean finance: early-stage support, de-risking instruments and new business models that align investments with the ocean’s regenerative potential. We need blended finance structures, concessionary capital, and tailored vehicles that serve investors across the continuum – from philanthropic to institutional.

Preserving the world’s oceans is not only a moral imperative; it is also a smart financial strategy. Investing in ocean resilience is a forward hedge, not a sunk cost. Those who move early will shape the instruments, define the standards and reap the upside.

Ocean health is planetary health, which is the foundation of all economic value. That means the main question capital managers – whether at family offices, philanthropies, pension funds or other private investment vehicles – should be asking themselves is how to gain exposure to the blue economy.

This commentary is part of The Ocean Imperative debate, brought to you in part by The Ocean Risk and Resilience Action Alliance and AXA.

Peter Bryant is the oceans programme director at Builders Vision, an impact investing platform; and Sindre Østgård is a managing partner at We Are Human, an impact-first venture capital firm, and sits on the board of 2050.do and the Crown Prince of Norway Fund for Future Generations.

Copyright: Project Syndicate