New Challenges in Climate Change

Their remote locations, limited land area, and minimal human and capital resources make small island developing states (SIDS) highly vulnerable to the adverse impacts of climate change, such as rising sea levels that threaten their existence and extreme weather events (for instance, hurricanes and cyclones) that can cause widespread destruction, loss of life and property, and economic setbacks. Climate change also often affects SIDS’ water resources, agricultural output, and fisheries, directly impacting their food security, sustainable development, and economic agendas. Notably, climate change also impacts SIDS’ indigenous livelihoods, cultural heritage, and practices, causing economic marginalisation, discrimination, and unemployment. The COVID-19 pandemic exacerbated an already precarious situation for most SIDS, widely affecting society (particularly health) and the economy, and amplifying existing sustainability challenges. It also slowed the effects of climate change adaptation and mitigation in the SIDS and elsewhere, forcing the SIDS that had been pursuing climate-resilient strategies to divert already-scarce financial resources to support socioeconomic initiatives undertaken to combat the pandemic. The United Nations notes that carbon emissions around the world are returning to pre-pandemic levels, and greenhouse gas (GHG) concentrations are now at record-high levels. Notably, SIDS are responsible for just under 1 percent of these GHG emissions. Given the challenges posed by their limited land area, small population sizes, reliance on natural resources, and the high vulnerability of their fragile ecosystems, SIDS have turned to their large ocean territory to attempt to control the adverse effects of a changing climate through the blue economy framework. Pioneered by economist Gunter Pauli, the blue economy concept is rooted in the sustainable development of the ocean and seeks to balance social equity, economic growth, and environmental conservation. Although SIDS have lower emissions levels than more developed countries, they are disproportionately impacted by climate change. As such, the blue economy model seeks to offer these countries a framework for sustainable development. The model relies on a commitment to the sustainable use of ocean resources, such as sustainable fisheries (for example, a reduction of bycatch and increased science-based fisheries management) and responsible aquaculture (essentially, preserving marine biodiversity while ensuring a continuous food supply). The blue economy model can help chart a development pathway for a resilient and prosperous future for SIDS based on the principles of conservation and social equity. As such, it aligns with most of the Sustainable Development Goals (SDGs), particularly those related to poverty (SDG-1), food security (SDG-2), gender equality (SDG-5), energy (SDG-7), decent work (SDG-8), climate action (SDG-13), and life below water (SDG-14). As of February 2024, several countries, including some SIDS, have integrated blue economy principles into their development strategies. For example, India and Seychelles—which have vastly diverse geographies, economies, and population sizes—have recognised the significance of their ocean space in driving economic growth, ensuring food security, and mitigating climate change. In these countries, the blue economy strategy is focused on sustainable fisheries management, harnessing renewable energy, leveraging marine biotechnology, promoting responsible aquaculture, and developing sustainable tourism. As such, the blue economy model can help SIDS and other coastal countries address climate change by promoting a sustainable and climate-neutral economy. Blue bonds allow SIDS to raise funds for environmentally sustainable and ocean-related projects. The funding can then be allocated towards supporting fisheries, marine conservation, renewable energy, and other sustainable blue economy sectors. These bonds attract socially responsible investors and provide a dedicated funding source for blue economy projects.