Report: Advancing China’s Sustainable Blue Economy - Building Strong Policy Foundations for Ocean Accounting and Blue Finance

As a major maritime nation, China’s ocean economy holds a significant position in the national economy. The traditional development model can no longer meet the nations growing demands; it is imperative to promote necessary policy reforms and accelerate sustainable ocean management.

Accelerating the transition to a sustainable blue economy is crucial for promoting high-quality economic development, safeguarding national maritime interests, and achieving harmonious coexistence between humanity and nature.

The report Advancing China’s Sustainable Blue Economy - Building Strong Policy Foundations for Ocean Accounting and Blue Finance establishes the foundation for China’s sustainable blue economy by providing:

• Review of the global transition to a sustainable blue economy
• Key opportunities and challenges for China in the transition
• Systematic analysis of policy frameworks, ocean accounting, and blue finance tools

GOAP Secretariat Director, Dr Phil James is a contributing author, providing particular expertise related to ocean accounts, social inclusion and equity and blue finance.

Key findings

1. Transitioning to a more sustainable blue economy is extremely important for China. China’s gross ocean product has continued to grow, accounting for approximately 8% of the national GDP in 2024. The ocean economy is playing an increasingly vital role in promoting employment, ensuring food security, and supporting the sustainable development of coastal regions.
2. The development of a sustinable blue economy faces complex challenges. Although China has made progress in optimizing the structure of its ocean economy, ecological protection, and technological innovation, it still faces issues such as declining environmental carrying capacity of marine resources, fragmented management systems, insufficient social inclusiveness, and a lack of relevant standards and policy tools. Additionally, climate change–induced sea level rise and the increasing frequency of extreme weather events have further exacerbated the vulnerability of coastal economies.
3. Ocean accounting will be a useful tool to support the development of the sustainable blue economy, however is needs strengthening in China. To achieve sound governance and informed policy-making, it is essential to establish a ocean accounting system that incorporate ecosystem services and non-market values, and promote data sharing and standardized statistics. These measures will enhance the scientific basis and transparency of ocean governance and performance monitoring.
4. Blue finance still needs to be further activated. While blue financial instruments and standards have begun to show results, there remain significant gaps compared to the existing green finance in terms of dedicated financing, financial standards, incentive mechanisms, and information disclosure.
5. Several development pathways and policy recommendations are proposed to advance the sustainable blue economy in China:
   1. The sustainable blue economy should be integrated into the top-level policy frameworks with clear definitions and guiding principles, as well as incorporated into the 15th FYP and the subsequent policies to drive the necessary changes.
   2. Establish inter-ministerial coordination mechanisms
   3. Encourage local pilot initiatives
   4. Improve comprehensive ocean accounting systems and blue finance incentive standards
   5. Strengthen social inclusion and gender equality
   6. Support international cooperation and knowledge exchange

This report was officially launched on Friday 13 June during the Blue Zone event "Sustainable Blue Economy in the Vision of Carbon Neautrality" at the 3rd United Oceans Conference in Nice, France.