Opinion: New Westpac report highlights huge potential of Aotearoa New Zealand’s blue economy
By Dr Cath McLeod, Chief Science Officer.
25 February, 2025.
Last week, Westpac published a report highlighting the potential of Aotearoa New Zealand’s ocean estate to underpin the growth of a new, sustainable blue economy. The report reveals that marine activity currently contributes at least $10bn in value add to the New Zealand economy, and predicts that by 2035, sector value add will rise to $14bn pa, with even higher growth possible if we are able to find sustainable ways of utilising marine mineral resources.
I was pleased to see the report reiterate the necessity for a swing towards a blue economy, which in my view offers huge opportunity to fully integrate impeccable environmental credentials, social values, and high-tech marine innovation into the development of commercial products and services.
New Zealand has the right natural assets, mindset, and expertise to lead the world in the ethical production of marine bioresources. From food, to medicine, to construction materials, high-value marine products can provide solutions that are not only profitable but also crucial for a sustainable future. To be clear, I’m not advocating for intensive and unsustainable development of the ocean surrounding New Zealand’s landmass – I’m suggesting that by developing the right opportunities and capturing whole value chains in the process, New Zealand can develop a blue economy that transforms our economic prosperity and is also an environmental win.
I agree wholeheartedly with the Westpac position that the blue economy enables us to “consider economic development and ocean health as compatible propositions” – I made a similar argument in an op-ed I penned for Newsroom last year. While there are real challenges that need to be overcome to strike a balance between blue economy growth and environmental sustainability, they are not insurmountable. Science has a key role to play here in answering some of those important questions and filling critical knowledge gaps.
Science organisations already have many marine-based solutions and products that just require focus, investment and permissive regulation to realise. One example is Cawthron’s neosaxitoxin project, which provides the basis for the world-first development of a non-opioid marine-based local anaesthetic. If successful, it could be part of the answer to reducing global morphine addiction. We are seeking a bold investor to take this forward in collaboration with us and our world-leading partners at Harvard University.
Credit: Cawthron Institute – Cawthron Aquaculture Park – an R&D hub for New Zealand’s aquaculture sector.
“…we believe the potential growth outlined in Westpac’s report is achievable. That’s why Cawthron has been advocating for the establishment of a national marine bioeconomy innovation platform, as it would provide the know-how and coordination required to bring people together.”
Dr Cath McLeod
Chief Science Officer
With better collaboration, innovative approaches to financing and attracting investment, and a fit-for-purpose regulatory environment, we believe the potential growth outlined in Westpac’s report is achievable. That’s why Cawthron has been advocating for the establishment of a national marine bioeconomy innovation platform, as it would bring mana whenua, industry, government and science into one waka, with co-investment to work together on agreed priorities and really get the sector going.
There is no shortage of innovation happening in pockets across New Zealand’s science system, but we lack a coordinated effort that would make these individual projects more impactful. This is particularly evident in the seaweed sector, where we know that research and investment is needed to fill knowledge gaps and create pathways to commercialisation, but current R&D efforts are fragmented and there’s no unified approach. We need to bring people together across the country to form the best teams to support the New Zealand seaweed industry to develop and diversify into producing high-value internationally sought-after seaweed products.
The Government’s recent overhaul of the science system and restructuring of our Crown research institutes provides an opportunity to consider how we can fix these issues and set ourselves up for future success.
While it’s not immediately clear how the government expects independent research organisations like Cawthron to fit into this picture, we remain committed to working collaboratively with publicly funded research organisations to bring the shared vision of a thriving blue bioeconomy to life. In fact, Cawthron warmly welcomes any organisations with interests in the marine bioeconomy to come to us and discuss how we might collaborate on common goals. The doors of our laboratories and aquaculture park are always open and we would love to create a unified marine innovation ecosystem with all actors in the same tent. We’re already working with future-food and feed start-ups like NXW and UpFlow, aquaculture companies, and iwi/hapū owned aquaculture enterprises including Te Arawa Fisheries, Whakatōhea and the Te Huata hatchery team from Te Whānau ā Apanui. Together, we are achieving so much more than we would be working in isolation.
While we wait to see how the Government’s restructure of the science system plays out, we are pleased to see that Westpac’s report recommendations align with Cawthron’s ongoing efforts to foster collaboration, secure critical funding (including overseas investment), and position New Zealand as a global leader in the blue economy.
Now is the time to progress a truly coherent and collaborative approach to sustainable development of our marine economy, support the Government’s efforts to attract investment into innovation, and accelerate a science and innovation agenda that supports the responsible growth of marine bioresource industries. Cawthron is absolutely committed to this vision, and we invite others who share it to reach out to us – we’d love to hear from you.