Washington: Aquaculture, the fastest-growing food production sector, is now supplying the majority of the world's seafood. It plays a crucial role in feeding a growing population, stimulating economic growth, and reducing the food sector's greenhouse emissions.

According to World Bank, aquaculture has the potential to create up to 22 million jobs by 2050, contingent upon stakeholders seizing a $1.5 trillion investment opportunity in the sector over the same period. The report draws insights from seven well-established aquaculture industries across Bangladesh, Chile, China, Ecuador, Egypt, Thailand, and Vietnam, analyzing financial mechanisms and the evolving roles of public and private sectors to inform future investments in sustainable aquaculture.

The report highlights investment trends and financial mechanisms shaping the industry's future, emphasizing the need for a transition from small-scale to more intensive production to realize aquaculture's growth potential. Innovative financing, especially in emerging markets, is essential for helping small-scale farmers improve productivity through the adoption of improved farming practices.

Aquaculture's role is expanding from a niche market to a mainstream investment strategy, offering diversification and strong long-term returns. A "business-as-usual" growth forecast predicts an additional 60 million metric tons of annual aquaculture production over the next 25 years. However, targeted investments could lead to an upside growth scenario, increasing annual production by 97 million metric tons over the same period.

The top aquaculture industries demonstrate strong returns by focusing on different markets, such as shrimp in Ecuador, salmon in Chile, and Pangasius in Vietnam leading global exports. Meanwhile, carp in China and black tiger shrimp in Bangladesh primarily supply domestic markets.

Public-private partnerships and development finance are pivotal, with governments, development finance institutions, and private investors, including philanthropies and concessional investors, playing critical roles in scaling sustainable aquaculture and reducing investor risks. Furthermore, green finance is reshaping investments, with sustainability-linked loans and blue bonds unlocking capital for responsible aquaculture growth.