Could underwater farming be a major contributor to a sustainable ‘blue economy’? If so, how will ICIEC help enhance the prospects and unlock the potentials for this new dimension in sustainable agriculture? By Tala Alsaati, Strategic Planning and Communications, ICIEC.
According to the United Nations (UN), using just 2% of oceans for sustainable farming could solve our global food shortage. Farming underwater is a revolutionary concept, but one that could provide a real alternative that will help improve global food security. The possibilities are exciting but not without consequences. In this article, we look into the current state of play, the economics, the opportunity, and the extent to which ICIEC could support aquaculture and underwater farming initiatives. One potential approach would be for ICIEC to offer coverage for equipment and resources used in these projects, as well as to facilitate and incentivize trade and investment in the goods produced.
Eliminating hunger on a global level will require adopting and implementing sustainable farming practices that produce a cycle of harvesting, while preserving our environment for future generations. With the global population projected to reach about 9.7 billion by 2050, the UN estimates that food production needs to increase by 60% to meet this demand. Underwater farming offers a promising solution to this challenge by providing fresh produce, increasing food production and supply, reducing the impact of climate change, and promoting sustainable farming method. Through underwater farming, marine life can be protected, CO2 removed from the atmosphere, and freshwater usage cut by 70%; while growing crop that can offer millions of people access to nutritious food, thereby ending food shortages. Ocean farming is a promising way to achieve the Sustainable Development Goals; a feasible path towards achieving Zero Hunger, Life Below Water, No Poverty, Good Health and Well-Being, Clean Water and Sanitation, and Affordable and Clean Energy.
Various initiatives are underway to develop underwater farming, including researching the cultivation of seaweed species, growing vegetables and fruits sustainably, and monitoring pests and diseases. The model requires less area and fewer inputs and can be more productive per unit of land. Additionally, underwater farming can reduce the risk of soil erosion, water contamination, and other environmental impacts associated with traditional agriculture. Underwater farming can reduce reliance on organic farming and biofuels to address food security, keeping prices lower and producing more for economic growth.
The future of financing vegetables and fruits farming underwater is an exciting and vital topic in the global economy, though initial costs may be higher than traditional methods, the marine environment’s abundant resources will boost profitability and economic growth, while helping to protect marine ecosystems. Exploring these options and developing financing mechanisms to support the development of the blue economy; The blue economy, centered around sustainable development and utilization of natural resources, including initiatives like aquatic farming, aquaculture, and other ocean-based activities.
The economic benefits of underwater farming to the blue economy are numerous, as it can provide food, jobs, and revenue to communities. To finance such initiatives, it is important to understand the economics of underwater farming and the potential for profit and return on investment. By making strategic investments, aquatic agriculture can transform global food security, reduce poverty, and promote economic growth.
Underwater farming is a key industry in the blue economy, with the potential to reduce poverty and finally eliminate hunger permanently. Financing new underwater farms is necessary, as the world population continues to grow. The expansion of private enterprises in underwater farming could reduce the financial burden for millions, reducing poverty and food insecurity in low-income areas. Government support for underwater farming is key to the long-term success of the blue economy. It is essential to find potential financing solutions that can help to offset the costs and reduce the risks associated with the project.
Governments, businesses, and international financial institutions should consider financing solutions to offset the high costs of setting up and maintaining aquatic farms. Government investment in underwater farming initiatives can offset the costs of setting up the project and incentivize businesses to invest in the technology. Private funding from investors is also an essential factor in financing underwater farming projects. International financial institutions can support such initiatives by providing resources, expertise, and financing. However, there are challenges in aquatic farming funding, such as the high cost of setting up the project, the risk of failure, and the need for more knowledge and expertise in the field.
Exploring ICIEC’s potential role in underwater farming
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) could play a role in risk mitigation and insurance coverage for underwater farming projects. ICIEC could potentially provide coverage for equipment and resources used in underwater farming, facilitate trade and investment in underwater farming projects, and encourage the use of Islamic financing methods in line with Shariah principles, bringing together investors and project developers to exchange knowledge and best practices, supporting project development, and promoting the growth of underwater farming. ICIEC is committed to supporting initiatives that promote sustainable agriculture practices in a Shariah-compliant manner.
Since inception, ICIEC has had a significant development impact over 29 years, ICIEC has insured US$95 billion in trade and investment and provided US$1.5 billion in agriculture support. Underwater farming offers significant economic benefits to the blue economy, including providing nutrition and employment. To support the development and growth of the blue economy, ICIEC could also work with investors and state institutions to assess the feasibility and sustainability of these projects and provide risk mitigation services. Ultimately, the success of underwater farming depends on a variety of factors, such as water quality, temperature, market demand, and regulatory frameworks. However, with careful planning, innovative solutions, and the support of institutions like ICIEC, underwater farming could potentially be a viable and sustainable solution to global food security and the achievement of SDGs.
New partnerships and investments in this exciting field are needed, so that these potentials can become a reality. With a proper commitment to the blue economy and environmentalism, we can achieve food security and reach all the sustainable development goals. To meet current demands of food shortage and to cover future demand, this would require a 42% increase in land, 120% more water usage. Underwater farms will reduce our reliance on traditional farming that harms the soil and air that could produce 77% more greenhouse gas emissions. Not only does underwater farming provide access to fresh produce, but it also has the potential to significantly increase food production, while reducing the impact of climate change.
