Making the Blue Economy work for the Oceans

There is a lot of interest in the potential of the blue economy as a driver of prosperity, but the externalities of activities are not always given due attention, says Cerasela Stancu of Envirostrat. In contrast to land economies with individual property rights, the oceans are a commons with multiple activities. Some are permitted, some regulated, many happening in the same spaces at the same time, not all of which complement each other. The recent withdrawal of offshore wind companies from investigating sites west of Taranaki following central government signalling it would permit seabed mining being a case in point.

A strategic plan for the blue economy would be helpful. It would be worth investigating how negative externalities might be accounted for to drive more sustainable practices. We have heard that replacement legislation to the RMA is likely to be enabling of activities. The Minister of Housing has put in the caveat, as long as they do not harm other rights. There could be value then in exploring how impacts might be mitigated through biodiversity credits that are used to fund protection and regeneration projects.

If the ultimate result is the health of the oceans then this could be justified, if it becomes a form of greenwash then it would not. Lessons are being learned from the failures of carbon credits to ensure the system cannot be gamed. For a start, measurement of multiple metrics would be needed to ensure net biodiversity uplift.

The UK launched their biodiversity credits scheme in 2023: https://www.gov.uk/guidance/statutory-biodiversity-credits and Australia launched their scheme earlier this year: https://www.environment.nsw.gov.au/topics/animals-and-plants/biodiversity-offsets-scheme/about/how-scheme-works/biodiversity-credits. New Zealand environmentalists will be watching with interest.