Ocean Economy in Europe’s Atlantic and Arctic: Navigating Toward Powerful Regenerative Blue Futures

• August 31, 2025

The vast expanse of Europe’s Atlantic and Arctic waters stands at a critical point. These marine regions, which collectively encompass over 27.6 million square kilometers of the EU’s exclusive economic zones, face unprecedented challenges from climate change, pollution, and fragmented governance systems. Yet within these challenges lies an extraordinary opportunity to reimagine our relationship with the ocean, transforming from exploitation to regeneration, from fragmented management to integrated stewardship.

The Current State: A Blue Economy in Transition

Europe’s blue economy has demonstrated remarkable resilience and growth, employing 4.82 million people and generating nearly €890 billion in turnover as of 2022, a 29% increase from the previous year. The Atlantic Maritime Strategy area alone accounts for more than one-third of the EU’s blue economy gross added value. However, this economic success story is shadowed by mounting environmental pressures that threaten the very foundation upon which these industries depend.

The European Environment Agency’s latest assessments reveal a sobering reality: only 37% of Europe’s surface water bodies achieve ‘good’ or ‘high’ ecological status, while a mere 29% meet ‘good’ chemical status standards. In the rapidly changing Arctic, warming occurs at nearly four times the global average, fundamentally altering marine ecosystems and creating new economic opportunities while simultaneously threatening traditional ways of life.

Climate Impacts and Critical Thresholds

The marine waters of the Atlantic and Arctic are experiencing what scientists call “climate change’s deadly trio”: ocean acidification, sea warming, and deoxygenation. Recent research indicates that climate change may account for up to half of the combined impacts on marine ecosystems. The Arctic Ocean, in particular, faces a cascade of interconnected changes: sea ice loss, permafrost thawing, and ecosystem shifts that could trigger irreversible tipping points.

Semi-enclosed seas like the Baltic and parts of the North Atlantic are particularly vulnerable, with shallow coastal areas experiencing disproportionate impacts from rising temperatures and changing ocean chemistry. The European Marine Climate Change Index shows that vulnerability is especially high in parts of the Baltic Sea, the Adriatic Sea, and coastal regions of the North-east Atlantic.

The Governance Challenge: Who Stewards the Ocean Commons?

One of the most pressing questions facing Europe’s marine regions is who owns and governs the vast ocean commons. The Atlantic and Arctic present a complex governance landscape characterized by what experts term “polycentric fragmentation”. The Arctic Ocean governance involves five coastal states (Canada, Denmark via Greenland, Norway, Russia, and the United States), alongside various international bodies and agreements.

Unlike the Antarctic, the Arctic lacks a comprehensive international treaty, instead relying on a complex suite of domestic laws, international treaties, and customary international law. The European Union, while not an Arctic Ocean coastal state, exercises significant influence through flag state, port state, and market state capacities.

The Stewardship Imperative

The concept of ocean stewardship has emerged as a critical framework for addressing governance fragmentation. The 2008 Ilulissat Declaration saw Arctic coastal states claim a stewardship role for the central Arctic Ocean. However, effective stewardship requires moving beyond territorial claims to collaborative, science-based management that recognizes the interconnected nature of marine systems.

The EU’s new Ocean Act, proposed for 2027, aims to strengthen maritime spatial planning as a strategic tool, building on a revision of the Marine Spatial Planning Directive to better organize sea basin approaches and increase cross-sectoral coordination. This represents a significant step toward more integrated ocean governance.

Protect, Reimagine, or Abandon?

Systems That Must Be Protected

Marine Protected Areas (MPAs) are highly important for ocean conservation efforts. The Arctic Council’s Framework for a Pan-Arctic Network of Marine Protected Areas calls for ecologically functional MPA networks that protect the diversity of genes, species, populations, habitats, and ecosystems. Most Arctic states have established some MPAs but remain in early stages of creating connected, functional networks.

The Central Arctic Ocean Fisheries Agreement exemplifies proactive protection, requiring ten parties to abstain from fishing in Arctic high seas until sustainable practices can be established. Similarly, the High Seas Treaty, once ratified by 60 countries, will provide coordinated management for international waters.

Systems That Must Be Reimagined

Traditional blue economy sectors require fundamental transformation to align with climate neutrality and circular economy principles. The EU’s Sustainable Blue Economy Partnership envisions a “just and inclusive transition to a regenerative, resilient, and sustainable blue economy” by 2030.

Aquaculture presents a prime example of necessary reimagining. Integrated Multi-Trophic Aquaculture (IMTA) systems, as demonstrated by the PHAROS project in Ireland and Gran Canaria, show how salmon farming can be combined with macroalgae cultivation to reduce environmental impact while increasing biodiversity and economic returns.

Systems That Must Be Left Behind

Certain practices and approaches prove incompatible with ocean health and must be abandoned. These include:

• Linear economic models that extract, use, and dispose without considering regenerative cycles
• Sectoral silos in governance that ignore ecosystem interconnections
• Short-term profit maximization that depletes marine resources faster than they can regenerate
• Exclusionary decision-making that fails to engage coastal communities and Indigenous peoples

Innovation Driving Ocean Regeneration

Digital Ocean Twins: Virtual Laboratories for Real Solutions

The European Digital Twin of the Ocean (EU DTO) represents a revolutionary approach to marine management. Launched with €15 million annually in EU investment, this AI-powered platform integrates real-time and historical ocean data to simulate “what-if” scenarios. By 2024, the first pre-operational platform demonstrated capabilities ranging from Sargassum drift forecasting to turtle movement simulation.

The EU DTO enables policymakers to model complex scenarios: “What if I reduce pollution in a given river, what would be the impact on the ocean?” These predictive capabilities are already improving ocean current prediction accuracy by more than 20%, setting new benchmarks for marine forecasting while using a fraction of traditional supercomputer energy.

Blue Finance: Catalyzing Sustainable Investment

Financial innovation drives the transformation toward regenerative ocean economies. The European Investment Bank’s Clean Oceans Initiative has mobilized over €2.7 billion for 63 projects addressing plastic pollution and marine degradation. The BlueInvest platform, supported by €500 million in EU funds, is expected to generate €1.5 billion in risk financing for innovative small and medium-sized enterprises contributing to sustainable blue economy.

These financing mechanisms support circular economy solutions, from advanced aquaculture systems to marine renewable energy projects. The EIB’s Blue Sustainable Ocean Strategy demonstrates how targeted investment can accelerate the development of sustainable fisheries, green shipping, and blue biotechnology.

Citizen Science: Democratizing Ocean Knowledge

Citizen science initiatives are transforming how we monitor and understand marine systems. The European Marine Observation and Data Network (EMODnet) now integrates data from diverse sources, including the diving industry through partnerships with Scuba Schools International. Over 1,260 marine citizen science initiatives worldwide contribute to research ranging from biodiversity monitoring to pollution tracking.

The CS-MACH1 project, launched in 2025, aims to build a robust marine citizen science data network, enhancing collaboration and data flow among diverse stakeholders. These initiatives not only expand research capacity but also increase ocean literacy and public engagement in marine conservation.

Circular Economy Solutions: Closing the Loop

The transition to circular blue economy models eliminates waste and maximizes resource efficiency. PHAROS project demonstrations showcase how Integrated Multi-Trophic Aquaculture creates symbiotic relationships between species, with macroalgae absorbing nutrients from fish farming while producing valuable biomass for food, feed, and biotechnology applications.

The EU’s Strategy for Plastics in a Circular Economy specifically targets marine litter reduction, with goals to reduce plastic litter in European waters by 50% by 2030. Projects like REMEDIES develop innovative waste management solutions and support the emergence of “litter entrepreneurs” who transform marine waste into economic opportunities.

The PHAROS Project: Lighthouse for Atlantic-Arctic Innovation

The PHAROS project, funded with €9.5 million and led by the Canary Islands Ocean Platform, is an example of the integrated approach needed for ocean regeneration. Operating from 2024 to 2029, PHAROS bridges the EU Mission’s development phase (by 2025) and deployment phase (2026-2030) through four key demonstrations across Gran Canaria, Ireland, and Iceland.

PHAROS integrates multiple innovative concepts:

• Nature-Based Solutions for ecosystem restoration, including marine forest and reef restoration
• Digital Twin technology creating comprehensive local representations for Gran Canaria and Iceland
• Citizen science programs engaging communities in marine monitoring and conservation
• Circular economy models transforming fishing practices and waste management

The project’s innovative IMTA demonstrations combine polyculture macroalgae with multiple aquaculture infrastructure, fish, and high-value species like abalone and sea cucumber. These systems not only restore degraded marine habitats but also support local economies while demonstrating scalable solutions for the broader Atlantic-Arctic region.

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Strategic Pathways Forward

Embracing Regenerative Principles

The transformation toward ocean regeneration requires fundamental shifts in thinking and practice. Rather than simply reducing negative impacts, regenerative approaches actively restore ocean health while supporting human communities. This means moving from extractive to productive relationships with marine systems, where economic activities contribute to ecosystem resilience.

Strengthening Integration

Effective ocean governance demands breaking down sectoral silos and fostering integrated approaches. The proposed EU Ocean Act represents a significant step toward coordinated management, but implementation requires sustained commitment to cross-border cooperation and stakeholder engagement.

Accelerating Innovation

Digital technologies, from AI-powered ocean twins to blockchain-enabled supply chain transparency, offer unprecedented opportunities to monitor, understand, and manage marine systems. However, technological solutions must be coupled with social innovation that engages communities and respects traditional knowledge systems.

Building Resilience

Climate change impacts on marine systems are already irreversible in many cases. Building resilience requires diversifying economic activities, strengthening ecosystem connectivity, and developing adaptive management capabilities that can respond to changing conditions.

Charting a Course to Ocean Regeneration

The state of Europe’s Atlantic and Arctic ocean economy stands at an inflection point. The old paradigm of unlimited extraction from seemingly infinite marine resources has reached its limits. Climate change, pollution, and biodiversity loss demand a new approach, one that recognizes the ocean not as a resource to be exploited but as a living system to be stewarded.

The path forward requires unprecedented collaboration across borders, sectors, and communities. Digital innovations like ocean twins provide the tools for understanding complex marine systems. Blue finance mechanisms mobilize capital for sustainable investments. Citizen science democratizes knowledge creation while building ocean literacy. Circular economy solutions eliminate waste while creating value.

Projects like PHAROS demonstrate that transformation is not only possible but already underway. By 2030, Europe has the opportunity to lead a global transition toward regenerative ocean economies that restore marine health while supporting thriving coastal communities. The choice is clear: we can continue with business as usual and face system collapse, or we can embrace regenerative principles and chart a course toward ocean recovery.

The ocean has sustained life on Earth for billions of years. Now it is time for human activities to sustain the ocean in return. The future of Europe’s maritime regions, and indeed the planet’s marine systems, depends on the choices we make today. The tide is turning toward regeneration; the question is whether we will rise with it.

Several of these topics will be central to the upcoming PHAROS webinar series, which begins with its first session on 25 September.

Webinar “Framing the Challenge: The State of the Ocean Economy“

The “Meet the Oceanpreneur” webinar series, part of PHAROS’ Citizen Litter Entrepreneur program, kicks off on 25 September 2025 through “Framing the Challenge: The State of the Ocean Economy” with a 50-minute session exploring the state of the ocean economy, its challenges, and opportunities for sustainable growth. Through a dynamic fireside chat format, leading experts will introduce concepts such as digital ocean twins, blue finance, citizen science, and circular economy solutions to set the stage for future sessions.

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