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NDF Explains: What is blue economy?

/media/ndf-explains-blue-economy.jpg In the second episode of our explainer series, NDF Explains, we dive into blue economy.
19.08.2025

In episode two of NDF Explains, we explore the ‘blue economy’—a sustainable way to use water-based resources to support climate resilience and development.

More than 70% of the Earth's surface is covered by water. No matter where we live, the ocean influences all of us. 40% of the world’s population live near coastal areas and more than 3 billion people utilise the oceans for their livelihood every day, according to United Nations.

But what is blue economy, and how do we work with this topic at NDF?

“A sustainable blue economy involves the responsible use and conservation of resources from oceans, seas, coasts, lakes, and rivers. This includes sectors like fisheries, tourism, renewable energy, and pollution reduction. The blue economy is crucial for climate resilience and sustainable growth,” says Satu Santala, NDF’s Managing Director.

Watch the second episode of NDF Explains:

 

'Life Below Water’ remains the most underfunded of all the SDGs

Oceans and coastal ecosystems also play a key role in regulating the global climate.

Despite the importance of healthy oceans to the preservation of marine biodiversity, sustainable livelihoods and their role as a major carbon sink for the mitigation of climate change, SDG14, which is ‘Life Below Water’, continues to be the most underfunded of all Sustainable Development Goals. Only 7% of marine areas are currently protected.

Currently, the majority of marine and freshwater ecosystems face multiple threats, including plastic pollution, overfishing, acidification, and climate change. Therefore, mobilising private capital is critical.

“With NDF’s projects and initiatives, we support the sustainable blue economy through specific projects and programs in lower-income countries in the Global South,” Santala explains.

What is climate finance? We explain

 

Our commitment to the sustainable blue economy

To date, NDF has committed EUR 63.5 million to projects focusing on oceans and the sustainable blue economy. Most of these contributions are in the form of grants to Africa, Asia, and Latin America. Additionally, we have committed EUR 5.66 million to the sustainable blue economy through the Energy and Environment Partnership Trust Fund, EEP Africa since 2018. EEP Africa is a multi-donor trust fund that provides early-stage financing for clean energy projects in Southern and Eastern Africa and is hosted and managed by NDF.

"Our waters matter to all of us and the blue economy helps us take care of them sustainably,” Santala adds.

 

We are currently working on many projects with a blue economy angle, see our active initiatives here:

Nordic Development Fund:

 

Energy and Environment Partnership Trust Fund:

 

Did you like NDF Explains? Watch episode 1