What Is the Blue Economy?
August 5, 2022
What Is the Blue Economy?
Marine economic activity, which may include activities
The Department of State reports that the purpose of the
occurring in the ocean, coastal areas, and Great Lakes, is
blue economy is to “advance ocean heath alongside
important for economic growth, jobs, and livelihoods
economic prosperity, providing sustainable food, power,
around the world, and particularly in coastal communities.
and transportation.”
However, some marine economic activities contribute to
overexploitation of living (e.g., fisheries) and nonliving
The Department of Energy (DOE) describes the blue
(e.g., oil, minerals) marine and coastal resources.
economy as “comprised of sectors and activities that
span commerce and trade; living resources; renewable
This In Focus discusses various definitions of the term blue
energy; minerals, materials, freshwater; and ocean
economy; provides an estimate of the monetary value of the
health and data” and notes that many of these sectors
U.S. blue economy; and presents policy considerations for
show an increased focus on sustainability.
Congress, including a discussion about the possible need
for a statutory definition of the blue economy and
Value of the U.S. Blue Economy
legislative support for its associated activities.
In the United States, the Bureau of Economic Analysis
(BEA) tracks revenues and jobs associated with the marine
Blue Economy Definitions
economy. BEA considers the following activities to be part
There is no agreed-upon definition of the term blue
of the marine economy: living marine resources, coastal
economy. The use of the term varies among and within
and marine construction, marine research and education,
countries, organizations, and institutions. Definitions of the
marine transportation and warehousing, marine professional
term generally fall into two categories.
and technical services, offshore minerals, coastal utilities,
coastal and offshore tourism and recreation, nonrecreational
One variation of the definition refers to the blue economy
ship and boat building, and national defense and public
as the collective economic value of the resources, uses, and
administration. Some may consider the value of the marine
activities of the ocean and coasts. This definition may be
economy as a potential index of the value of the U.S. blue
used interchangeably with other terms, such as ocean
economy. In 2019, BEA reported that the U.S. marine
economy and marine economy. This In Focus uses this
economy portion of the gross domestic product (GDP) grew
definition of the term blue economy.
faster than the nation’s economy as a whole. In 2020, the
most recent year for which data are available, BEA found
Another variation of the blue economy definition refers to
the marine economy accounted for 1.7%, or $361.4 billion,
the use of ocean and coastal resources to balance economic
of the U.S. GDP, with coastal and offshore tourism and
prosperity and environmental sustainability, in line with
recreation as the largest contributor, at $190.9 billion.
how the term was first introduced and used at the 2012
United Nations Conference on Sustainability. For example,
Some organizations have attempted to estimate the worth of
the World Bank defines the blue economy as the
a potentially similar group of ocean-based activities, termed
“sustainable use of ocean resources for economic growth,
the ocean economy. For example, the Organisation for
improved livelihoods and jobs, and ocean ecosystem
Economic Co-operation and Development (OECD) defined
health.” In this definition, the blue economy refers to the
the ocean economy to include water transportation; port
efforts of nongovernmental organizations, federal agencies,
activities; maritime and coastal tourism; industrial fish
or others to promote sustainable ocean development, which
processing, capture, and marine aquaculture; exploration
contributes to maintaining the ocean’s ecological health and
and production of offshore oil and gas and wind;
ensuring the long-term viability and economic growth of
shipbuilding and repair; and manufacture of marine
marine-based industries.
equipment. In 2016, the OECD projected the global ocean
economy could double in total value added to $3 trillion by
Congress has not defined the term blue economy in statute.
2030.
Federal officials have used both of the above variations of
the term in the context of federal programs. Some examples
Policy Considerations
include the following:
Congress may consider several issues related to the blue
economy, including how the term is defined and valued and
The National Oceanic and Atmospheric Administration
legislative support for its associated activities.
(NOAA) defines the blue economy as the “sustainable
use of ocean resources for economic growth, improved
Need for a Blue Economy Definition?
livelihoods and job creation.”
Several bills introduced in the 117th Congress aim to codify
the term blue economy. Some bills would define blue
economy as an activity, whereas others would define it as
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What Is the Blue Economy?
an economic sector. For example, H.R. 6680 would define
resources. For example, the offshore renewable energy
the term broadly, in the context of DOE authorities, as “the
industry anticipates job growth with the deployment of
sustainable use of ocean and aquatic resources to grow the
solar, tidal, and wave energy technologies and the
economy, improve livelihoods, and create jobs in a manner
continued expansion of federal and state offshore leasing
that preserves the health of ocean and aquatic ecosystems.”
for wind energy. However, potential productive locations
In another example, H.R. 7970/S. 3866 would define blue
for offshore renewable energy projects may coincide with
economy in the context of Department of Commerce
locations of other marine activities, such as commercial and
responsibilities as “the value and impact of sustainable
recreational fishing, or conservation activities, such as
industries related to the Great Lakes, oceans, bays,
feeding or migration areas for certain species (e.g., North
estuaries, and coasts on the economy of the United States,”
American right whales). Previous Administrations have
and would specify industries and activities to include.
provided funding and technical assistance to nonfederal
regional ocean partnerships (ROPs) focused on marine
Some stakeholders argue that a standard definition of the
spatial planning. Some Members have proposed to codify
term is needed to capture the blue economy’s full
NOAA’s relationship with ROPs, including authorizations
contribution to national GDP. For example, H.R. 3748/S.
of appropriations for financial assistance (e.g., H.R. 3817/S.
140 would direct the NOAA Administrator to work with
1894 in the 117th Congress).
other agency leaders to define and measure the blue
economy in coordination with nonfederal and tribal
International Considerations for the Blue Economy
stakeholders, and to collaborate with national and
Many international intergovernmental organizations have
international entities to ensure measurement comparability,
established goals and targets that may directly or indirectly
among other activities. Alternatively, Congress might
support activities within the various definitions of the blue
maintain the status quo and leave the term undefined.
economy. For example, one target outlined in the U.N.
Convention on Biological Diversity (CBD) Post 2020
The definition used for blue economy could inform policy
Global Biodiversity Framework is for protected areas to
debates regarding ocean uses and activities. Any economic
cover at least 30% of land and sea areas by 2030. The
valuation of the blue economy would depend on the
Biden Administration’s “Executive Order on Tackling the
definition used, which would specify what industries,
Climate Crisis at Home and Abroad” (E.O. 14008)
activities, resources, or geographic areas are included. For
specified the Administration would determine which steps
example, some have proposed to include ecosystem
to take toward “conserving at least 30 percent of [U.S.]
services—the benefits to people, such as flood control,
lands and waters by 2030.”
provided by the natural environment—in valuations of the
blue economy. However, measuring these aspects of the
Congress may play a role in establishing new or expanding
blue economy is challenging due to a lack of consensus on
existing marine protected areas (MPAs) to help achieve the
how to value ecosystem services. Most existing measures of
goals of the CBD. Human activities are managed within
the blue economy focus on activities of marine-based
MPAs to protect and restore marine and coastal ecosystems.
industries and exclude ecosystem services.
In the United States, MPAs can be established and managed
at the federal, state, local, and tribal levels. MPAs in the
Supporting Blue Economy Activities
United States currently cover 26% of U.S. marine waters.
Congress has authorized federal agencies to support
activities that may be included in the broad definitions of
MPAs may support the marine and coastal tourism sector
blue economy above. Legislation in the 117th Congress
within the blue economy. The marine and coastal tourism
would add or change these blue economy-related
industry, including recreational boating and fishing, marine
authorities. For example, some bills would support blue
guided tours, and marine trips and travel, depends on
economy activities explicitly, such as legislation that would
healthy beaches, coral reefs, and other ecosystems. For
designate and fund regional Ocean Innovation Clusters to
example, a 2017 study found that 70 million trips are
“contribute to the equitable and sustainable growth of the
supported by the world’s coral reefs each year, representing
blue economy across all sectors” (H.R. 7970/S. 3866).
an estimated $36 billion to the global marine and coastal
Some bills would support certain industries that fall within
tourism industry.
the blue economy by providing funding for research and
development of “blue energy technologies” (H.R. 6680),
MPAs also may contribute to the blue economy through
establishing requirements for offshore aquaculture in
their ecosystem services. For example, 83% of U.S.
federal waters (H.R. 6258/S. 3100), or making changes to
mangrove forests, which occur along the U.S. Gulf Coast,
federal fisheries conservation and management programs
are protected by federal or state MPAs. Mangroves are
and processes (H.R. 3128), among other activities. Other
often referred to as one nature-based approach for
bills would support conservation and protection of the
mitigating global climate change—studies estimate that
marine environment, which serves as the basis for many
mangrove forests can store up to four times more carbon
blue economy activities, or would indirectly facilitate the
than tropical rainforests. Mangroves also stabilize the
blue economy through research, observations, and
coastline, reducing erosion from storm surges, currents,
monitoring of the marine environment.
waves, and tides.
Congress may continue to consider facilitating blue
Caitlin Keating-Bitonti, Analyst in Natural Resources
economy cooperation and coordination between the
Policy
stakeholders that rely on shared marine spaces and
Eva Lipiec, Analyst in Natural Resources Policy
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What Is the Blue Economy?
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