Moody's, a leading credit rating agency, found that threats to marine ecosystems are negatively impacting "blue economy" sectors. Along with our food supply and way of life, a staggering dollar amount is on the line. An unexpected industry could also see diminishing returns.
A blue economy encompasses every economic activity that relies on marine ecosystems -- think shipping, fishing, tourism, deep-sea mining, water utilities, and even oil and gas production.
In an October report, Moody's warned that declining ocean health is increasing the risks associated with every industry under the blue economy umbrella.
Small island nations are particularly vulnerable, as degraded assets such as mangroves and coral reefs -- "natural buffers" against rising sea levels and storm surges -- threaten essential infrastructure, such as housing, energy systems, and agricultural productivity. Biodiversity loss, toxic algae blooms, and chemical runoff are among the factors affecting resource availability.
If the world fails to address the root cause, it could lose an estimated $428 billion in economic value over the next 25 years, according to Intergovernmental Panel on Climate Change data cited in the report.
While hurricanes, droughts, wildfires, and severe storms are a normal part of Earth's lifecycle, a warming climate is supercharging extreme weather. For island nations and coastal communities dealing with rising sea levels, this means more dangerous and devastating flooding.
Considering oil and gas part of a blue economy may seem counterintuitive (and is controversial), given that burning fossil fuels produces nearly 90% of planet-overheating carbon pollution, their inclusion is due to the fact that offshore projects make up a significant portion of the world's energy supply. In short, the industry is a money-maker -- at least for now.
According to Moody's, oil and gas operators face the highest financial risk associated with the ocean environment. For example, severe storms can damage equipment and raise operating costs -- costs later passed on to consumers.
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Ironically, toxic, heat-trapping pollution from these oil and gas companies' fuels is the primary reason why sea levels are rising and ocean health is in rapid decline. Accidental contamination events, such as oil spills, can also damage lucrative ecosystems for generations.
In September, the United Nations ratified a "High Seas Treaty" to protect marine biodiversity by establishing protected areas in international waters. The agreement will go into effect in January and could help better safeguard about two-thirds of the world's oceans, according to Moody's.
The credit rating agency also underscored how the "blue bonds" market could promote the preservation of and sustainable use of marine resources.
The "majority of nature financing" struggles to attract private investors, according to SustainableViews. However, Moody's told the outlet that "the development of guidelines, dedicated investor funds, and other market initiatives" have made blue bonds appealing to private investors.
Even though blue-bond issuances have slowed in 2025, their values have increased from $2.6 billion over the first three quarters of 2024 to $2.8 billion in the same period this year.
"The extension of blue-bond guidelines to include clean and drinking water projects has contributed to the rise of non-financial corporations in this label, as water utilities are now able to issue blue bonds," a Moody's spokesperson said.
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