Ocean degradation poses economic and financial stability risks

The global ocean economy, encompassing fisheries, tourism, and coastal industries, has doubled to €2.3 trillion over the past 25 years, outpacing overall global growth.

In the European Union, ocean-related businesses contribute €251 billion in gross value added and 2.4 percent of total employment.

These economic benefits face severe risks from overexploitation, global warming, pollution, and habitat degradation.

Overfishing has depleted many fish stocks, and 10 percent of marine species are at risk of extinction.

Beyond direct economic impact, oceans play a pivotal role in mitigating climate change by absorbing one-third of human carbon dioxide emissions and over 90 percent of excess heat.

This crucial function is now impaired by rapid ocean heating, which reached unprecedented levels in 2024, leading to intensified extreme weather events and widespread coral bleaching, weakening coastal protection.

Ocean degradation affects price stability by disrupting key economic activities such as fisheries, tourism, and maritime transport, increasing price volatility for food and traded goods.

The diminishing capacity of oceans to regulate climate amplifies disturbances, raising macroeconomic uncertainty and complicating monetary policy.

If oceans lose their carbon absorption ability, costly investments in carbon sequestration will be required.

The ECB stresses the need for more granular data on economic and financial exposures in coastal and ocean-dependent sectors for central bank analysis.

Rising sea levels, which have climbed 21 centimeters since 1900 and are accelerating, threaten low-lying cities and ports.

These impacts could cost the EU up to €500 billion annually by 2080 in coastal regions, affecting 65 percent of the global economy located near coasts.