For the Maldives, and the vast majority of countries in Asia and the Pacific region reliant on coastal and marine ecosystems, the full potential of the blue economy is yet to be realised. It is not just an economic strategy; for these nations, including the Maldives, it is a necessity for their survival. While fishing and marine-based tourism have naturally flourished, other investment-intensive sectors such as renewable marine energy, marine biotechnology, and green and resilient infrastructure require financing and conducive policies to thrive.

Supportive policies as catalysts

Maldives and the other Small Island Developing States (SIDS) in the Pacific are putting in place some of the most ambitious policies to change their challenges into opportunities. Energy security and a just transition to sustainable production are key priorities in their nationally determined contributions.

The Maldives announced at Cop28 its commitment to developing renewable energy systems, with the aim of meeting 33 per cent of the country’s energy needs within the next five years. If this commitment is realised, it could save almost US$750 million currently spent on energy from the national budget. At last year’s global plastic treaty negotiations in Paris, the SIDS put forward an ambitious proposition, involving implementing effective waste management solutions for the SIDS funded by plastic producers. The Maldives is also currently piloting an initiative to establish a sustainable waste-to-energy facility in the capital region, with the potential to expand the initiative across all islands.

Missing link of finance

In the lead-up to the fourth International Conference on Small Island States (SIDS4) in May, the Maldives hosted the first Asia-Pacific Blue Economy Forum, with support from the United Kingdom under the Climate Finance Network hosted by the United Nations Development Programme. Participants from 15 countries in the region, along with think tanks and private-sector partners, identified common challenges that cut across all sectors in the blue economy. These included decreasing overseas development assistance, a lack of financing opportunities and big data, coastal ecosystem governance and a need for greater access to finance and innovation.

President Mohamed Muizzu shared similar sentiments on the global stage at SIDS4, and the Maldives, with other SIDS leaders, called for a revitalised multilateral approach that could address the financing gap of the SIDS, and incorporate measures of vulnerability into the allocation of concessional finance.

The leaders also called for reforms of the international financial architecture to strengthen the voice and representation of the SIDS and other developing countries.

To bridge the financing gap and realise the full potential of the ocean’s resources, investments need to reach the micro, small, and medium enterprises (MSMEs) that dominate the economies in the region. MSMEs often drive innovation and open up new market segments, and pooling and de-risking investments are essential for easy access to financing.

MSMEs also have the potential to influence market behaviours, as demonstrated by the Maldives’ own augmented-reality digital-education app Hologo, which has now gained prominence globally in 3D, AR and VR content for education. Similar innovations include OdiApp, which facilitates sea transport in the country, and eDhumashi, a fintech solution for women fishers that helps expand their market access and enhance economic benefits throughout the fisheries sector’s value chain.

For the SIDS to unlock their catalytic blue economy and development potential, national and global partners in the public and private sectors need to act now. The universal acceptance of the Multidimensional Vulnerability Index and related measures could turbocharge access to financing and facilitate needed investments for these nations at the forefront of loss. This must be matched by continued leadership and actions to realise the potential of an inclusive and sustainable blue economy.

As a key public good, the blue economy is as important globally as it is for SIDS, and the opportunities the blue economy offers are as vast and profound as the ocean.

A connection as old as time

There is a folk tale from the Maldives, about a man who lives atop a whale, a companion he has shared many years with. Perched on the whale’s back, he clings to its fin, and the whale, in turn, understands not to dive deep for prolonged periods to safeguard the man’s life. Occasionally, it submerges briefly if sensing danger nearby. The man sustains himself on raw fish, adeptly catching them with his hands, aided by the whale in locating them. Many fishermen across the Maldives recount glimpsing this man atop the whale, but if spotted, both swiftly retreat into the depths.

The answer to the blue economy lies in revisiting the core of the story and age-old wisdom: the Maldives’ profound connection to and dependence on nature. The love and care we receive from the ocean are treasures to cherish for generations to come.

Enrico Gaveglia is the Resident Representative for the United Nations Development Programme in the Maldives.