Ocean Sustainability, a new frontier for higher profits

*This is not financial advice. All content should be considered opinionated. We are not responsible for any of your gains and losses. I am neither a licensed nor registered financial expert. Please see a financial advisor before making investment decisions.


Recently, researchers have found that ocean sustainability is a frontier that has a lot of upside. The oceans have been a center of the climate change problem as the plant life there takes in most of the CO2 from the air and has been victim to warming temperatures and pollution. If our oceans aren't saved, then combating climate change and living on Earth will be a lot harder.

When investing in ocean sustainability, there are four key areas to invest in: production of sustainable protein from the ocean, maintaining mangrove habitats, increasing offshore wind production, and decarbonizing international shipping.

Ocean-based food production

The oceans are full of sea life and they're also filled with a ton of animals that people can consume. As consumers lean away from cows and consume more seafood, fisheries are being strained. Some fish species are nearing extinction due to overfishing as demand for fish has been growing. And with the world population growing, demand for fish will grow even more.

By finding ways to make ocean-based food production sustainable, not only can we continue to feed the world but also prevent many species from going extinct. Researchers estimate that the ROI for solving this problem is 1000%. In simple terms, for every dollar invested in solving this issue, you'll get $10 back.

Mangrove Habitats

Mangroves are "swamp ecosystems typically located in the tropics that connect freshwater and oceanic ecosystems and protect people from sea level rise, hurricanes and flooding" (CNBC). Because of their role in the environment, it's never been a more crucial time to invest in them. Investing in them early will reduce the damages from natural disasters later on.

Experts see the returns of investing in mangrove habitats to be 300%.

Offshore wind farms

With the demand for energy growing, many look towards renewables as a way to make energy more sustainable for the world. With coastal areas being windy and needing more energy, utility companies are assembling wind turbines offshore to generate electricity. Plus, the winds offshore are faster and they're more frequent than winds on land.

While offshore wind farms are expensive to build and their effect on marine life isn't well-know, experts estimate that the returns on offshore wind farms are around 200% to 1700% depending on the price of electricity. Electricity is a commodity.

Making shipping green

While shipping accounts for 2.5% of emissions, there is still a lot of value to be created when decarbonizing the shipping industry. In the beginning of 2020, the International Maritime Organization (IMO) activated a rule that drastically reduced the sulfur content of ships. Ships that don't comply with the new rule will be penalized heavily, boosting demand for cleaner fuels and ships that can run on the cleaner fuels. LNG has been one fuel that is starting to become more popular in the shipping industry since it complies with the IMO 2020 rules.

Experts predict that the returns for decarbonizing ships are between 200% to 500%.

To sum it up

There is a lot of value to be created in ocean sustainability. Whether it's preserving the wildlife, utilizing the nature, or making human activities cleaner in the sea, there is a lot of value to be created. While you might be skeptical on the returns, having 71% of the Earth covered in oceans just shows the huge opportunity that's being presented. 

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