The ocean covers the majority of earth’s surface, holding 97 per cent of all our water and 80 per cent of all life forms. Major ocean sectors such as fisheries, ports & shipping, marine renewable energy and coastal infrastructure, collectively contribute to a “blue”economy.

According to estimates prepared by the Organisation for Economic Co-operation and Development (OECD), ocean-related sectors contributed approximately USD 1.5trn of global gross value-added in 2010, a figure that is projected to increase to USD 3trn by 2030, with some ocean industries set to grow faster than the global economy.

However, ocean health is under increasing stress, faced with the triple crises of climate change, nature loss, and pollution—leaving the industries, businesses and livelihoods that rely on the ocean exposed to serious risks. While many existing ocean-linked sectors have the potential to contribute positively to a sustainable blue economy, this is not true for all sectors. The extraction of non-renewable marine resources such as oil & gas and seabed mineral deposits in particular, poses a significant risk to the ocean and cannot be considered sustainable.

Recognizing that a significant amount of investment and financing continues to be directed towards the exploitation of non-renewable marine mineral resources, UNEP FI has prepared a series of sector-specific briefing papers1 to explore their social and environmental impacts, with particular reference to the development, operation and closure of each of these sectors, the risks to financial institutions of continued association with these activities, and managing an equitable transition to more sustainable alternatives.

This briefing paper discusses the potential risks associated with the exploration and production of offshore petroleum resources (oil and gas), and how financial institutions should engage with and respond to this sector.