Investing in the blue economy
By Lyle Pentith, Portfolio Manager
Change is coming to our oceans and not before time. Covering two-thirds of the planet and absorbing over 30% of the CO2 from the atmosphere, they will play a crucial role in addressing the climate crisis. The Ocean Innovators Platform panel that I attended this week at COP27 showed how investors and entrepreneurs are taking on the challenge of building a sustainable, blue economy.
The event, organised by the Prince Albert II of Monaco Foundation, set out how innovation, and how we use our oceans, can drive climate mitigation and adaptation. It showcased both the new solutions and technologies in this area and the investors who are actively tackeling vital issues.
Often, discussions about global warming focus on land use. Deforestation and intensive agriculture go hand in hand with a rapidly increasing population, driving urbanisation and increasing onshore renewable energy development. Scaling up the use of our oceans will help to relieve our reliance on land for energy generation and carbon sinks, mitigating climate change's impact and nourishing marine ecosystems.
The solutions can be incredibly effective. According to the World Economic Forum, we are generating more renewable energy than ever, and the incredible progress in offshore renewable energy technology, such as floating wind and solar farms, is shifting our focus and dependence from land to sea.
These technologies play a pivotal role in reversing years of damage and maintaining our oceans, as well as introducing new ways of utilising this vast resource. It is a rewarding space for investors, and one which will continue to grow, providing substantial profit and ROI.
This work is increasingly appealing to larger institutional investors. Previously considered niche, the ecosystem is now better established and is delivering strong financial performance. Larger funds are being raised with the participation of institutional investors, such as SWFs, banks and CVCs. Barclays, Deutsche Bank and UBS Global Wealth Management’s contribution to the Ocean Innovation Platform demonstrate this.
Future Planet Capital was an early and enthusiastic backer in this space. We are pleased to be contributing our own investment in the blue economy, recently announcing the close of a new €20m Blue Ocean mandate aimed at tackling key issues affecting the world’s oceans in partnership with the Prince Albert II of Monaco Foundation and the Monaco Government. Through this mandate, we are actively addressing one of the greatest challenges faced by our society today – climate change.
The Prince Albert II of Monaco Foundation has developed a successful platform and community to positively serve the blue economy. By partnering with Future Planet Capital and committing its capital, the Foundation sets an example for other institutions by addressing a key global challenge while pursuing a market return.
We’re pleased to share that we have been invited to participate in the Foundation’s next Ocean Innovators Platform event in March next year.