McGuireWoods London partners Marc Naidoo and
Jennifer J. Kafcas co-authored a
column for Global Banking & Finance Review magazine in which they
discussed the “Blue Economy,” issues related to its regulation and
promotion, and whether it can be leveraged to develop derivatives products.
Naidoo and Kafcas wrote that the Blue Economy is “generally defined as
those economic sectors which have a direct or indirect line to marine
resources,” pointing out that by 2030 it “could outperform the growth of
the global economy,” according to the OECD.
According to Naidoo and Kafcas, the ocean “has an annual economic value
generation of at least $2.5 trillion (making it the world’s seventh largest
economy by asset class).” However, developing it as an asset class depends
on translating it “into ‘eligible blue investment categories’” and creating
investment vehicles that show both a positive return and a positive effect
on ocean resources.
“As things stand, the regulatory environment is complicated by the fact
that there are numerous definitions identified by various industry players
as to what ‘sustainable blue financing’ means,” Naidoo and Kafcas wrote.