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The Blue Economy
A case for Malta
Malta as an International Financial Centre and its role in the Blue Economy
The primary function of financial centers is to identify pertinent stakeholders within their system and proactively pave the way for constructing the fundamental blocks and pillars necessary to facilitate financial services for sustainable ocean-related projects. By recognizing and engaging key stakeholders, financial centers play a crucial role in establishing the foundational framework essential for supporting initiatives that contribute to the sustainable development of the ocean sector.
Malta, being an island nation in the Mediterranean, has a long history of maritime activities, including but not limited to ship registration, port facilities, and a well-established regulatory framework for the maritime sector.
Malta has also established itself as an international financial center, attracting businesses and investors with its favorable regulatory environment and strategic location.
Therefore, the prerequisites for Malta to take a leading role in the Blue Economy are already in existence. The foundational structures have been firmly established, providing a solid platform for the nation to take off and emerge as a leader in this domain.
The EU Blue Economy
The well-established Blue Economy sectors remain pivotal contributors to the overall EU Blue Economy, benefitting from the availability of accurate and comparable data.
The latest report on the EU Blue Economy for the year 2023 encompasses seven well-defined sectors, namely Marine Living Resources, Marine Non-Living Resources, Marine Renewable Energy, Port Activities, Shipbuilding and Repair, Maritime Transport, and Coastal Tourism.
Each sector is further divided into subsectors. Additionally, these subsectors are further broken down into specific activities.
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Beyond the well-established sectors, the 2023 Blue Economy Report delves into the analysis of Ocean Energy, encompassing marine renewable energy sources other than offshore wind energy and Blue Biotechnology, encompassing algae production and processing. It's worth noting that these sectors extend beyond the confines of the Marine Living Resources sector. However, the availability of comprehensive data for these two sectors is relatively limited, partly due to their emerging nature and the fact that they are not entirely captured by the standard statistical classification of economic activities.
It is important to highlight that each sector exhibits indirect and induced effects on the broader economy. Taking Shipbuilding and Repair as an illustrative example, a substantial portion of the value added emanates from both upstream and downstream activities. This implies that, in addition to its direct contribution, the sector exerts notable multiplier effects on income and employment across various segments of the economy.
The Blue Economy Established Sectors Across Member States
The Blue Economy's contribution to national economies displays significant variation among Member States. In terms of employment, its percentage share spans from 8% in Croatia to 0.1% in Luxembourg. Similarly, concerning Gross Value Added (GVA), the range extends from 5% in Denmark to less than 0.1% in Luxembourg.
Broadly speaking, the Blue Economy tends to be a more substantial contributor to both national Gross Value Added (GVA) and employment in Member States characterized by islands or archipelagos, namely Denmark, Croatia, Malta, Greece, Cyprus, and Portugal.
The Role of Finance in Ensuring Blue Financing
The primary function of financial centers is to identify pertinent stakeholders within their system and proactively pave the way for constructing the fundamental blocks and pillars necessary to facilitate financial services for sustainable ocean-related projects. By recognizing and engaging key stakeholders, financial centers play a crucial role in establishing the foundational framework essential for supporting initiatives that contribute to the sustainable development of the ocean sector.
Malta, being an island nation in the Mediterranean, has a long history of maritime activities, including but not limited to ship registration, port facilities, and a well-established regulatory framework for the maritime sector.
Malta has also established itself as an international financial center, attracting businesses and investors with its favorable regulatory environment and strategic location.
Therefore, the prerequisites for Malta to take a leading role in the Blue Economy are already in existence. The foundational structures have been firmly established, providing a solid platform for the nation to take off and emerge as a leader in this domain.