Introduction
In 2019, the Asian Development Bank (ADB) hosted the annual meeting to the Pacific island country – Fiji for the very first time, signifying the ADB’s announcements for its Ocean Financing Initiative and Healthy Oceans Action Plan, as well as investment of US$5 billion by 2025 to promote related projects. From February 25 to 27, 2020, the ADBI, the OPRI-SPF, and TaiwanICDF collaboratively hosted an international conference on “Blue Economy, Ocean Tourism, and Sustainable Blue Financing” in the warm weather of Fiji. The conference is part of ADBI’s and OPRI’s research, capacity building and sessions. Nearly 100 people attended with backgrounds of industry, government, and academia from 15 countries, including Asian and Pacific countries and the US. The conference consisted of 15 academic reports and policy dialogues. During the 3-day conference, scholars and officials from different countries discussed how to develop blue financing measures to nurture ocean resources and to promote ocean economy.
Ambassador Jessica C. Lee, Representative of the Taipei Trade Office (TTO) in Fiji, was invited to deliver a speech. She introduced TaiwanICDF’s projects that utilize blue economy concepts and the aquaculture and restoration projects in collaboration with Fiji and the Marshall Islands to improve aquaculture product yield and ensure sources of protein. Another project is a collaboration with Palau for coral reef conservation through advanced technology and ocean governance. Dr. Miko Maekawa, Senior Research Fellow of the OPRI-SPF, mentioned during her opening speech that many key ocean meetings will be hosted this year, which will make this year a “super” year for oceans; such conferences include the United Nations (UN) Ocean Conference. Cooperation between areas can speed up the achievement of goals and create knowledge platforms. She also expressed gratitude to the TaiwanICDF for cooperation in sustainable ocean development, and to the TTO in Fiji for much needed assistance in the conference. Dr. Ted C. Chuang, Deputy Minister of Taiwan’s Ocean Affairs Council, participated as Taiwan’s governmental representative. He made his presentation in the first meeting after the opening on the topic “Blue Economy and Climate Adaptation,” in which he introduced the vision of the Council and its major tasks that echo the UN’s Sustainable Development Goal 14 (SDG14)—Life below water. TaiwanICDF’s long-term dedication in supporting Pacific islands was also confirmed by all parties present. A display board was specially set up during the conference to exhibit project outcomes, and many participants were drawn to the board for further study or a photo.
Conference summary
- 一、The Stimson Center in Washington, DC, is one of the main founding members of Our Ocean Conference, a major annual ocean conference, that participates actively in UN Ocean Conference projects and initiatives. Mr. Jack Stuart presented in this conference the Climate and Ocean Risk Vulnerability Index (CORVI), a cross-national research. The CORVI project is currently operated in partnership with the OPRI-SPF, collecting data gradually from the Caribbean and South Pacific island countries. Plans are under way for expanding the study areas to South Asia and Southeast Asia. The research uses expert evaluation index that groups ocean risks into ecological, political, and financial risk categories. The 10 main indicators include surveys of experts from different disciplines, and provide a general comparative ocean risk assessment for each indicator. The significance of this study is to form a global compilation of ocean risks, instead of an evaluation based on absolute development data. The index helps create visualized overall comparisons, allowing more financial or insurance organizations the opportunity to offer proper evaluations. The study is still in its early phase and will continue in various countries, with results expected to be presented at the UN Ocean Conference. It is desired that more countries and research institutes may join in to apply the ocean risk vulnerability index in more aspects.
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- 二、The application of blue financing is a relatively new concept in the ocean industry. The system allows ocean environment-friendly sectors to raise funds for development. According to the 2019 annual report by UK organization Climate Bonds Initiative (CBI), the market for green financing is already near US $167.6 billion, but marine applications are as yet quite limited. Professor Raghu Dharmapuri Tirumala of the University of Melbourne, Australia, proposed an analytical structure based on traditional green financing created by ADB. The blue finance accelerator estimates specific interest rate reduction as an incentive to accelerate formation of the blue finance market. Ms. Nagisa Yoshioka from OPRI-SPF presented the joint study between OPRI and Professor Hsing-Hao Wu from Department of Economic and Financial Law, National University of Kaohsiung. The study advocates for blue financing regulations, and roles within the system all have their own properties and scopes of interaction. Mutual benefits are described through analysis of their interests. For example, NGOs and NPOs focused on marine protection obtain funds through various interactions with development banks. Alternatively, there is the role of private businesses. For sectors that may gain relatively large profits, such as offshore wind farm, a contribution to blue financing should be obligatory by initiating the first fund ocean development. In contrast to green financing environment indices, the detection of ocean development requires much more scientific input. Therefore, developing island nations need to work more closely with ocean-related research think tanks, providing evidence-based analysis and promoting financial circulation.
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- 三、Quantitative analysis of ocean disaster risk management also serves as important reference for financing. Mr. Hajime Tanaka from OPRI-SPF utilized GIS and hazard maps in Southern Hokkaido region of Japan, to proceed impact assessment of tsunamis on industry-specific buildings in different areas as well as reconstruction cost estimate. The simulation results show that the capital-use subsidies for the seafood production industry in coastal cities have the largest benefit on society and economy, and will promote the revitalization of other fishery-related industries. The empirical research has a wide scope for application, and can serve as a reference for policy-making in other countries regarding relatively vulnerable industries, in hopes of contributing to disaster prevention. Senior Research Fellow, Dr. Michelle Voyer of the Australian National Centre of Ocean Recourses and Security (ANCORS), University of Wollongong, Australia, presented the concept of blue governance as guided by blue economy, highlighting the integration of various organizations and coastal management. A global ocean account should also be created based on comprehensively surveyed ocean information to gradually identify the development processes of society, economic activities, and ocean conservation, and assess and address each goal.
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- 四、United Nations Development Programme (UNDP) resident economist – Dr. Rima Prama Artha presented the evaluation projects by the UNDP in Indonesia. The Indonesian government collaborated with major private banks to combine Sukuk funds, corporate social responsibility (CSR), and related global funds of US$2 billion to establish the Green Sukuk, green financing in the local language. In the future, its scope will be extended to oceans. It is expected to help broaden public-private partnership, with each application assessed in 3 weighted categories, environment (50%), economy (25%), and society (25%). Main development areas are sustainable fishery, renewable ocean resources, ocean waste management, marine ecology restoration, and disaster management. Meanwhile, Mr. Alvin Joeshar of the Central Bank of Indonesia and Mr. Ahmad Pakihadina Rahmatulloh of Resona Bank gave thorough introductions on related public and private sector measures, displaying close collaboration among industry, government, and academic circles.
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- 五、The policy dialogue began by Mr. David Kolitagane, Permanent Secretary from Fiji’s Ministry of Rural and Maritime Development, who delivered the keynote address in which he emphasized the relation between ocean economy utilization and development and confirmed that policy recommendation through empirical research will improve governmental measures through various quantitative analyses. Ms. Hanna Uusimaa, Climate Change Specialist from the ADB Pacific Department, explained the ADB Action Plan for Healthy Oceans, clarifying and discussing its content with state and organization representatives. As governmental representative, Taiwan’s Ocean Affairs Council Deputy Minister Chuang, who reported how Taiwan’s textile industry used disposed plastic bottles as raw material for sportswear and promoted the textiles to the world. He also proposed in his talk to assist Pacific countries with sea freight systems for plastic waste shipping and integrated collection. Besides being recovered, the plastic waste can be further transformed into economical products. Fiji’s Ministry of Rural and Maritime Development Permanent Secretary Kolitagane responded immediately to the Taiwan proposal, declaring challenges for local waste disposal and looking forward to keeping close contact and discussing solutions with Taiwan, anticipating the realization of the South Pacific processing plan. Specialists from ADB agreed that this type of environmental plan has much economic potential, especially where the resource recycling process creates economic benefits to economic development. It also serves as a basis to help ADB decide whether to provide funding or support.
Conclusion and Recommendations
At the closing ceremony, ADBI Vice Chair of Research, Dr. Peter Morgan acknowledged that state representatives and presenting scholars had adequate discussions during the conference, both within scheduled conference sessions and at dinner parties. This means that vivification and development of healthy oceans, blue economy, and blue financing can become popular subjects internationally. Once revised, the reports presented in this conference shall be officially sent to the international journal Marine Policy for a special issue on the topic “blue economy and finance,” in hopes of gaining even more academic and policy discussions. The leader of TaiwanICDF in Fiji, Mr. Dominick Lee made a speech as well, and shared guavas grown by the agricultural technical mission with the audience in “Fruit diplomacy” on all sides.
CBI research shows that the Asia Pacific has become the area where environmental financing is developing fastest. How we can leverage the rising awareness for environment conservation and market vitalization, establishing regulations that coexist with the ocean, and allow sustainable resource development, is essential. To achieve this effectively, it is most critical to promote two- or multi-sided close policy connections through think tanks. Especially as Japan and Taiwan are highly complementary in terms of technology, human resources, and foreign affairs, their destinies are entwined. So, it is ever more necessary to nurture marine talent, strengthen international participation, and deliver the clear message of protecting ocean sustainability to the world, all based on the shared value of sustainable ocean development. The next conference will be held at ANCORS, University of Wollongong, Australia, in November 2020, when it is expected that research on blue economy and blue finance will shine with an abundance of intellect.
Michael C. Huang, Ph.D. (Research Fellow, Ocean Policy Research Institute,
the Sasakawa Peace Foundation)
Translated by Linguitronics
