From ancient mariners to modern day container ships, seafaring businesses have had no choice but to accept the sometimes disastrous vagaries and uncertainties of the ocean. Where there is risk, however, there is reward. Innovative business models and technologies present new opportunities for economically and ecologically sustainable ocean enterprises – and ultimately for more profitable marine investments in everything from fisheries to shipping to tourism to oil and gas and renewable energy. Yet connecting ideas and opportunities in the seas to capital markets remains a significant challenge.
By its nature, an economically and ecologically sustainable ocean entreprise should be a good investment. But quantifying risk is difficult for industries such as fishing where open access is the norm and sustainable efforts may be undermined at any time by new entrants. In many less-developed countries, a businesses' only collateral is usually a leaky, decrepit vessel. Market entry is less of a concern when it comes to clean up pollution, respond to ocean acidification or climate change, and to protect essential habitats. Revenue streams from those activities are less immediate.
For new capital to flow to end overfishing, address pollution, and effectively manage both nearshore and offshore conservation areas, new investment frameworks and institutions, as well as financial services, will have to develop that allow potential investors to manage risk and to create bankable assets. The Economist Events’s World Ocean Summit to be held in Bali, Indonesia in February 2017 will discuss just what those frameworks should look like.
To secure your seat, please visit our website. The advance purchase rate ends on October 23rd.