Introduction to Blue Economy
The blue economy, which encompasses various economic activities related to the ocean and its resources, seems to play a negligible role in Bangladesh’s economy. This can be inferred from the lack of investment from formal lending institutions, such as banks, in this sector. According to recent data, the total outstanding loan in blue economy projects under green financing stood at Tk 8.48 billion as of June 2025, which is a significant decrease from the Tk 13.50 billion in December of the previous year.
Importance of Blue Economy
Despite the vast potential of the blue economy, the flow of bank credit to this sector has been inadequate and inconsistent over the years. Bangladesh has a 710-kilometre coastline and an extensive exclusive economic zone (EEZ) that extends to 200 nautical miles, equivalent to 118,813 square kilometres of maritime territory in the Bay of Bengal. This provides a significant opportunity for investment in various sectors such as marine resources, including fisheries and aquaculture, shipping and maritime trade, tourism, offshore renewable energy, and more.
Marine Resources and Their Potential
The marine resources of Bangladesh, including fisheries and aquaculture, have the potential to create infrastructure, employment, improve livelihoods, and boost trade. However, the fishery resource of the sea needs to be exploited sustainably by preserving the marine ecosystem, which requires the use of technology and scientific management of fisheries and other aquatic resources. Moreover, the fishery culture should not be limited to just catching fish; it should also involve farming of crustaceans, mollusks, and aquatic plants, and add value to its products for marketing at home and abroad.
Renewable Energy and Shipping Trade
Apart from aquatic life, other resources such as winds, tidal waves, and abundant sunshine in the coastal areas can be harvested to provide power to coastal communities as well as the national grid. The shipping trade also has ample scope for expansion, particularly with the optimum utilization of the Matarbari deep sea port once it is fully operational for commercial use. The potential of the shipbuilding industry, which has already built hundreds of small and medium-sized vessels for domestic and international markets, should also be exploited.
Challenges and Solutions
Despite the potential of the blue economy, required investments to stimulate the different subsectors are missing. No project proposal involving the blue economy has been submitted under the Bangladesh Bank’s refinance scheme so far. There is also talk of ‘blue bonds’ to draw private investment in the blue economy, but it is still in the conceptual stage. Experts believe that limited understanding of the financial industry about the blue economy is to blame for this poor investment picture. Banks have few tools to assess investment risks in its various sub-sectors. To address this, the government is required to come up with a dedicated policy framework with provisions for fiscal incentives and capacity development for the sector. Meanwhile, the central bank, in collaboration with relevant industries, should develop a roadmap to encourage financing for the blue economy.
Conclusion
In conclusion, the blue economy has the potential to play a significant role in Bangladesh’s economy, but it requires substantial investment and support from the government and financial institutions. With a dedicated policy framework, fiscal incentives, and capacity development, the blue economy can create infrastructure, employment, improve livelihoods, and boost trade. It is essential for the government and relevant stakeholders to work together to unlock the potential of the blue economy and ensure its sustainable development.
