© Francis Taylor
More blue financing is needed to protect marine life and coasts, as the ocean is a vital part of the world’s economy, European Central Bank (ECB) president Christine Lagarde has said.
“We rely on the ocean for climate stability and economic prosperity, yet we are fuelling a climate crisis that threatens to undermine the very system we depend on. We cannot let that happen,” she said during a special event at the UN Ocean Conference in Nice last week.
Lagarde urged going beyond just reducing emissions to protecting “the natural systems that shield us from floods” with nature-based solutions such as coral reef restoration.
Adaptation is also needed as the world transitions “to a more volatile world”, she stressed, including building sea walls and surge barriers “and budgeting for resilience rather than reacting after disaster strikes”.
“Whether we like it or not, climate-related risks are materialising,” she said.
Lagarde’s comments came amid reports that marine heatwaves are spreading. Research from the University of Reading found that they may even be accelerating. The ocean has absorbed over 90% of excess heat and a third of carbon dioxide emitted since the industrial revolution but scientists are concerned it may be reaching a tipping point.
Ocean assets are estimated to be worth at least US$24mn, environmental group WWF has found. If the sustainable ocean economy were a nation, it would have a gross value added of $2.5tn, making it the eighth largest economy.
There are systemic exposures to nature-related risks in the ocean that central bankers and regulators need to act on, the WWF said in a briefing published in early June.
In short, a decline in ocean health through pollution, land and sea changes and overexploitation creates physical risk and changes in economic activity which then translates into financial risk, the WWF said.
The organisation said it plans to produce a more extensive guide on recommendations to help central banks assess and manage ocean-related risks.
Meanwhile, the Taskforce on Nature-related Financial Disclosures (TNFD) released its final guidance for fishing and marine transportation and cruise lines. It separately launched a consultation on measures and disclosures for ocean and marine-related nature issues, which is due on 1 October.
This page was last updated June 17, 2025
Written by
Moriah Costa is the Editor-in-Chief of Green Central Banking and has over a decade of experience writing about banking and finance. She is an award-winning American journalist based in Paris and has written for major international publications, including Reuters, The Guardian, and S&P Global. Having grown up in water-stressed Arizona, she has always had a strong interest in bringing awareness to climate and environmental issues.
