As concerns about overfishing and environmental degradation continue to mount, sustainable aquaculture is emerging as a critical solution for the future of seafood production. In fact, the United Nations’ blue economy initiative has identified sustainable aquaculture as a key investment priority in building a sustainable future for the seafood industry. As such, businesses and policymakers around the world are increasingly turning to sustainable aquaculture as a viable pathway towards meeting the growing global demand for seafood while promoting both economic and environmental sustainability. In this article, we will delve into the benefits and challenges of sustainable aquaculture as well as explore the investment opportunities it presents for the blue economy.
Investment in sustainable aquaculture is one of the four major opportunities for ocean impact investment according to Morgan Stanley. A new report by the company outlines that over $3tn of funding is required in the coming decades to protect the oceans so that they can reduce the effects of climate change, protect biodiversity, and support economic growth.
The report highlights that the recent United Nations agreement on the High Seas Treaty is a turning point for sustainable investment opportunities to protect the oceans. The treaty is a legal framework that sets 2030 targets for the maintenance of the health and biodiversity of the oceans, as well as creating protected maritime areas.
Jessica Alsford, CEO of the Institute for Sustainable Investing and Morgan Stanley’s chief sustainability officer explains in the report: “With a framework for ocean conservation now in place, there is a strong case for investors to assess opportunities in the blue economy”.
The report emphasizes that around half of seafood produced globally comes from farmed sources, or aquaculture, mainly in Asia. Meanwhile, the other half comes from wild fish stocks that are under increasing pressure, due to global seafood demand. Thus, expanding aquaculture to meet this demand is a significant investment opportunity, with an estimated $150bn to $300bn in capital expenditures required to expand capacity in the next decade.
However, the expansion in aquaculture needs to be supported by measures to reduce water pollution and labour risks inherent to the aquaculture industry. Sustainable aquaculture can support the goal of reducing carbon emissions as fish farms can be located with new renewable energy sites. Farmed seafood offers a comparatively low-carbon source of protein which could serve climate objectives in some cases.
Morgan Stanley’s report identifies sustainable aquaculture as a significant area where blue-economy investment opportunities lie, providing a significant boost to the expanding industry that supports local economies and provides protein for the growing population.
Investment in aquaculture presents significant ethical and environmental challenges, ranging from concerns about the welfare of farmed fish to issues around the destruction of coastal ecosystems and waste disposal. However, sustainable aquaculture can support food security, reduce overfishing of wild fish stocks, and create new opportunities for coastal economies.
In conclusion, Morgan Stanley recognizes the significant potential for sustainable aquaculture development to benefit both society and the environment, while providing a unique investment opportunity. Increased investment in sustainable aquaculture could help maintain and strengthen the health and biodiversity of the world’s oceans.
