8.1 Supporting the Sustainable Development of Ocean Governance
Oceans are the lungs of the Earth. They function as a respiratory system for our planet by producing oxygen and absorbing carbon dioxide. The amount of carbon dioxide absorbed by the oceans equals 23 percent of that emitted by all the human activities on Earth during a year. Protecting the healthy functioning of the oceans supports the mitigation of climate change. Because extreme environmental changes negatively influence the climate-sensitive species of the biosphere, the health of the oceans safeguards the biodiversity of our planet. It plays an extremely important role in greenhouse gas management. Marine biodiversity is especially sensitive and vulnerable to climate change: it is impossible for marine species to adapt to the extreme speed of ocean warming, oxygen loss, and acidification. With these issues in mind, the United Nations chose the protection of the seas and oceans as one of its Sustainable Development Goals (SDGs; UNDESA n.d.). SDG 14 is defined as a goal to “conserve and sustainably use the oceans, seas and marine resources for sustainable development.” Ocean governance and the international law of the sea can do much to promote the SDGs, especially SDG 14. When setting up appropriate legal frameworks and implementing existing ones, focusing on SDG 14 is key not only to supporting the sustainable development of ocean governance but also to protecting the community interests at sea.
Under sustainable development, we understand the concept of seeking to protect the needs of the present population without compromising the ability to meet the needs of future generations. In this regard, regulatory efforts traditionally face the challenge of balancing the individual interests of States and the common interest of (hu)mankind in protecting the oceans and fostering the long-term sustainability of their use and exploitation. The preservation of the marine environment and the sustainable development of marine resources stand as the most critical elements of the entire international community (Zou and Chang Reference Zou and Chang2023). This chapter analyzes three main elements of international cooperation that can protect the community interests at sea and contribute to the sustainable development of ocean governance: (1) the conservation of marine living resources; (2) the protection of the marine environment; and (3) the conservation of marine biological diversity. The chapter examines how blockchain technology (BCT), as the backbone of the technical revolution and the digital transformation in our century, can and should be introduced into ocean governance by taking into consideration its potential applications when implementing international treaties or other legal instruments under the umbrella of the law of the sea. In such a way, the chapter suggests, BCT can foster the implementation and acceleration of the SDGs.
Regardless of what model or doctrine of internalizing the international legal norms a particular State is following (dualist or monist, self-executing treaty doctrine, or necessity of ratification), the burden of bureaucracy, together with the potential lack of trust of the citizens in the administrative processes, is usually challenging. Consequently, when it comes to ocean governance or the implementation of international treaties, choosing the right management tools or processes strongly impacts the operational effectiveness of all international, regional (European Union), governmental, and local public administrations. Therefore, the two main purposes of applying new technologies in the implementation of international law (other advantages are detailed later in this chapter) are (1) to make the traditional, mainly paper-based and bureaucracy-burdened documentation and administrative processes speedier and more cost-effective; and, more importantly, (2) to strengthen public trust. Blockchain has been proclaimed as the greatest innovation since the invention of the internet. The technology has the ability to ensure that data stored in and shared through the blockchain is authentic. The process lacks the possibility of fraud, corruption, and human error. The importance and relevancy of BCT is reinforced by the fact that the United Nations has begun working on adapting and using BCT within its system (Dumitriu Reference Dumitriu2020). Petru Dumitriu recommends that “the governing bodies of the United Nations system organizations should ensure that, when applicable, the use of blockchain applications will be integrated, together with other digital technologies, into the innovation strategies and policies adopted by their respective organizations.” Dumitriu also recommends that the executive heads of UN organizations, through the relevant coordination mechanisms and with support from the UN International Computing Centre, consider the adoption of a nonbinding interagency blockchain governance framework for use by interested organizations, with a view to ensuring coherent and consistent blockchain approaches across the system. He also refers to the distributed ledger technology as a key contributor for achieving SDG 14. Already the United Nations uses BCT for purposes including tracking commodities (cashmere and cocoa) from point of origin through to sale by the United Nations Development Programme; tracking food donations from retailers to a nongovernmental organization (NGO) that receives donations; a UNICEF Venture Fund that provides product and technical assistance, support for business growth, and access to a network of experts and partners; a cash-based intervention initiative by the World Food Programme and UN Women serving Syrian and Rohingya refugees in Jordan and Bangladesh to coordinate the determination and delivery of mutual assistance in refugee camps; another UN Women project involving a blockchain-based cash transfer test in the Kakuma refugee camp in Kenya; and the Blocks for Transport project of the World Food Programme in Ethiopia and Djibouti aiming to explore ways to improve the timely availability of shipping documents using blockchain (Dumitriu Reference Dumitriu2020).
A PricewaterhouseCoopers study estimates that BCT has the potential to boost global GDP by US$1.76 trillion over the next decade (PwC 2020), but there are already much higher forecasts available.Footnote 1 Measuring the financial implications of using BCT shows not only in its GDP-boosting potential but also in its cost-saving effect. It reduces overhead and transaction costs (IBM n.d.). Eliminating the necessity of third parties, multiple intermediaries, or repeated supervision or controlling activities not only saves related costs but also facilitates trust between citizens and the national or local government. The BCT can also automate and simplify administrative tasks and processes. Most spectacularly, it saves the costs of financial transactions. The data and information stored in the blockchain are accurate, authentic, and unalterable; therefore, applying the technology in public administration ensures transparency and traceability, consequently raising public trust. When the processes become more rapid, all stakeholders (employees and citizens) will be more satisfied. Ultimately, when – with the assistance of BCT – public administration at any level can reach or even exceed the results achieved by traditional processes, the resources will be used in a way that maximizes benefits and minimizes environmental impacts. That is the aim of the SDGs.
8.2 Protection of the Community Interests at Sea
Before we dive into the ideas and cases on how BCT can make the implementation of the international law of the sea more effective, it is worth considering the three main elements of the protection of the community interests at sea: the conservation of marine living resources, the protection of the marine environment, and the conservation of marine biological diversity.
8.2.1 Conservation of Marine Living Resources
The adverse natural and human events – pollution, climate change, and overfishing – pose risks to the sustainable use of marine living resources. According to the UN Food and Agriculture Organization (FAO), the fraction of fishery stocks within biologically sustainable levels decreased to 64.6 percent in 2019, which is 1.2 percent lower than in 2017. In contrast, the percentage of stocks fished at biologically unsustainable levels has been increasing since the late 1970s, from 10 percent in 1974 to 35.4 percent in 2019 (FAO 2022).
The United Nations Convention on the Law of the Sea (UNCLOS)Footnote 2 recognizes in its preamble the importance of the protection of marine living resources. Due to the lack of an agreed definition of what conservation means under UNCLOS, the author relies on Article 2 of the 1958 Geneva Convention on Fishing and Conservation of the Living Resources of the High Seas.Footnote 3 The Convention stipulates that the expression “conservation of the living resources of the high seas” means the aggregate of the measures rendering possible the optimum sustainable yield from those resources so as to secure a maximum supply of food and other marine products. UNCLOS imposes the necessity to protect the marine living resources on the parties to the Convention. Traditionally, the international law of the sea follows a “zonal management” approach for protecting the marine living resources. The coastal States are specifically obliged, under Article 61(2), to ensure that the maintenance of the living resources in the exclusive economic zone (EEZ) is not endangered by overexploitation. Within this obligation, States are obliged to determine the allowable catch of the living resources in the EEZ and the capacity to harvest them. In addition, UNCLOS stipulates that the freedom of fishing on the high seas is subject to conditions (Articles 116–120). Accordingly, in determining the allowable catch and establishing other conservation measures for the living resources in the high seas, States shall, along with other requirements, take measures to maintain or restore populations of harvested species at levels that can produce the “maximum sustainable yield.” The international cooperation imposed on States by Article 118 is implemented through participation in regional fisheries organizations and on the basis of the relevant case law.Footnote 4 Noncompliance with the obligation to cooperate in the high seas regarding the conservation of living resources entails breaching Articles 117 and 118 (Tanaka Reference Tanaka2019, 281–290). Consequently, the main elements of the conservation of marine living resources for the purpose of the present study are the process of determining the allowable catch and the capacity to harvest natural resources.
However, it must be noted that, according to Professor Yoshifumi Tanaka, the above-referenced traditional zonal management approach to the protection of marine living resources is limited by the ecological reality of marine species. Therefore, it is worth paying attention to the concepts more recently introduced into the international protection of natural resources. One of those is “sustainable development,” introduced by the Stockholm Declaration of the UN Conference on the Human Environment in 1972Footnote 5 and confirmed in the report of the World Commission on Environment and Development (WCED 1987). Even if the concept would be regarded only as soft law because these documents are nonbinding, during judicial interpretation of UNCLOS it can be taken into consideration when resolving legal conflicts in the field.
8.2.2 The Protection of the Marine Environment
The second element of the protection of the community interests at sea analyzed in this chapter is the protection of the marine environment. There is no need to argue that marine pollution endangers both the ecosystem and human health. The importance of the subject was highlighted by the 2024 UN Ocean Decade Conference,Footnote 6 which identified marine pollution as one of the Ocean Decade’s ten challenges.Footnote 7 The main conference outcome – the Barcelona Statement – lists marine pollution monitoring and ocean observations as one of its three priorities.Footnote 8
The international legal framework regarding marine pollution includes numerous international treaties, as well as nonbinding soft law instruments. UNCLOS expressly recognizes in its preamble the importance of the protection and preservation of the marine environment. Article 1(1)(4) defines marine pollution as “the introduction by man, directly or indirectly, of substances or energy into the marine environment, including estuaries, which results or is likely to result in such deleterious effects as harm to living resources and marine life, hazards to human health, hindrance to marine activities, including fishing and other legitimate uses of the sea, impairment of quality for use of sea water and reduction of amenities.” The UNCLOS concept for the protection of the marine environment is based on six sources of marine pollution. Land-based marine pollution, together with pollution through or from the atmosphere, seemingly constitutes 80 percent of marine pollution (UNGA 2024, 29). These types of pollution cover industrial, agricultural, and municipal discharges, such as sewage. Vessel-sourced pollution includes any kind of pollution (such as oily residues and fumes) originating from the normal operation of ships, as well as pollution resulting from accidents. Marine pollution originating from seabed activities includes pollution as a result of mining, especially the toxic metals contained in the drilling mud. Continental-shelf drilling is another source of oil pollution. Dumping at sea is defined in Article 1(1)(5)(a) and, as Professor Tanaka notes, does not include disposal from land, while dumping from vessels is distinguished from vessel-based marine pollution (Tanaka Reference Tanaka2019, 324–329). UNCLOS not only contains detailed rules for preventing, reducing, and controlling the different types of marine pollution, but, as a general obligation in Article 192, it imposes a basic obligation of protecting and preserving the marine environment, where “marine environment” means the ocean as a whole, including the high seas. UNCLOS also prescribes for contracting parties the obligation to cooperate on a global basis and, as appropriate, on a regional basis – directly or through competent international organizations – in formulating and elaborating international rules, standards, and recommended practices and procedures, consistent with UNCLOS, for the protection and preservation of the marine environment. The International Maritime Organization plays an important role at the international level, especially in relation to pollution from vessels and pollution by dumping.
8.2.3 The Conservation of Marine Biological Diversity
The third element under analysis is the conservation of marine biological diversity. According to Article 2 of the 1992 Convention on Biological Diversity (CBD),Footnote 9 “biological diversity” means the variability among living organisms from all sources, including, inter alia, terrestrial, marine, and other aquatic ecosystems and the ecological complexes of which they are a part. This includes diversity within species, between species, and of ecosystems. Unsustainable use of the Earth’s natural resources means that we jeopardize them in such a way that they can no longer regenerate. Naturally managed marine areas cannot resist pollution, climate change, and human disturbance and are threatened by fast-growing and nonnative microbes and diseases. Therefore, they offer less shelter for biodiversity. Pollution and the disturbance of larger areas entail hindering the renewal of the natural habitat, increasing the danger of loss of biodiversity. In dedicated reserve areas, which in the oceans are called marine protected areas (MPAs), the management and protection of natural resources, including genetic resources, is more successful. These reserves promote natural self-regulation and can predominate and help long-term sustainability.
UNCLOS has only two general provisions regarding the protection of marine biodiversity. Article 194(5) prescribes the preservation of rare and fragile ecosystems (including endangered species and other forms of marine life), while Article 196(1) places an obligation on States to prevent, reduce, and control pollution of the marine environment (Tanaka Reference Tanaka2019, 409–430). The CBD contains general obligations for the conservation of biodiversity and for the sustainable use of its components, as well as fair and equitable sharing of the benefits arising out of the utilization of genetic resources. The provisions apply to the conservation not only of terrestrial biodiversity but also of marine biological diversity. When we examine the relationship between these two international agreements, on the basis of Article 22 of the CBD,Footnote 10 we see that UNCLOS prevails, unless there is a serious damage or threat to the biodiversity. The most critical weak point of the CBD is that it is not effective for transboundary damages and in areas beyond national jurisdictions. The establishment of MPAs offers the solution of protecting the whole ecosystem of a certain area by taking into consideration the relevance of ecological interactions between marine species – and not only areas under national jurisdiction, but in the high seas as well. At the dawn of the Agreement on Marine Biological Diversity of Areas Beyond National Jurisdiction (High Seas Treaty),Footnote 11 the subject of MPAs and the protection of marine biological diversity is getting even more international attention. As evidence for that, the Second UN Ocean Conference, held in 2022, yielded as one of its fifty pledges an investment of at least US$1 billion to support the creation, expansion, and management of MPAs and Indigenous and locally governed marine and coastal areas by 2030 (Kosolapova and Wagner Reference Kosolapova and Wagner2025).
After this analysis of the relevant legal framework containing the international obligations that are under research, the chapter introduces BCT, the tool recommended for use in implementing those obligations.
8.2.4 What Is Blockchain and How Can International Law Benefit from It?
Blockchain is a disruptive information technology that enables stakeholders to track transactions recorded in a public (or private) and secure, cryptographically verified database. Let’s discuss the meaning of each element of the above definition. We call disruptive any solution that is new and innovative compared to an existing technological process or mechanism. Disruption can have many benefits for society, including improving public governance by reducing costs and the time burden of administrative processes. However, it is necessary to ensure that an increase in automation does not have a negative effect – for example, on employment – that might result in the introduction of new technology causing damage that undermines its benefits.
Cryptographic verification ensures the security and safety of records, ensuring that stakeholders can trust that the data introduced and stored in the system are authentic and that the events or transactions recorded are without the risk of fraud, error, or inaccuracy and are, therefore, true. Blockchain is a type of distributed ledger technology by which transactions are stored in a chain of blocks and each block contains the same updated (live) information. In this way, each participant (node) of the system, having a copy of the whole ledger of the blockchain, can trust that the information contained therein is up-to-date and authentic. The so-called consensus protocol of the technology essentially refers to a decentralized agreement on the validity of the transaction. This protocol allows only correct blocks to be added to the ledger. In case of a malicious attempt to add a wrong block, the honest participants can refuse it. In this way, the authenticity of the ledger can be easily maintained.
On the basis of accessibility, we can differentiate four basic types of blockchain: public, private, hybrid, and consortium. Public blockchain is open to the public without any restriction. Any participant can act as a node and be part of the decision-making process. In these permissionless blockchains, anyone can verify transactions, and valid transactions cannot be changed, unless someone gains 51 percent or more of the computing power. The public blockchain is independent of any organization, and only computers connected to the blockchain are needed to see or share data on it. This type of blockchain is used mainly for cryptocurrencies, but it is also a perfect technical solution for real estate records or validating documents. Private blockchains are only open for certain individuals within a group, who will receive permission for participating in the given blockchain as nodes. They are usually controlled by only one entity and are typically used within the corporate environment, where they are usually applied in supply chain management or asset ownership control. Hybrid blockchains are a mixture of public and private, meaning that part of the blockchain is public, while the remainder is private. In this way, there is a possibility to keep confidential some chosen information within a public blockchain and give access to those data only to select persons. The confidential data are also verifiable. This concept is well suited to medical or real estate records. Consortium blockchain is also partly private and partly public. It differs from the hybrid blockchain in that in a consortium, multiple organizational members can collaborate on a decentralized network. Essentially a consortium blockchain is a private blockchain with limited access to a particular group, eliminating the risks that come with a single entity controlling the network on a private blockchain. This type of blockchain is widely used in banking and research activities.
The first product of BCT is Bitcoin, the well-known cryptocurrency, which was created in 2008. Since then, the technology has proved to be reliable and has found its way into other applications outside of the world of finance. Besides securing financial transactions, BCT is applied in, among other fields, healthcare (such as digital medical records), education, secure transactions, and data exchange. Governments are using BCT to set up reliable voting systems and for securing identification, while industry is using it in supply chain management and transportation. We have already seen smart contracts used for selling and buying real estate.
One of the largest achievements of BCT, from which international law can benefit, is its decentralized nature. The technology allows control over transactions, processes, and databases in a noncentralized way, as detailed above. It provides a secure and reliable record of activities and the exchange or sharing of information in a decentralized way, which ensures and increases trust, transparency, and reliability in the given system. The idea of using BCT for the implementation and execution of international treaties is grounded in the fact that, in the international community, there is no hierarchy among stakeholders, meaning that they act based on the same strategic framework as do the nodes in the blockchain. Nowadays, when the emphasis on the importance of digitalized information is shifting toward the cooperative and fruitful coexistence of humans and machines, it is more than necessary to look into the methods from which legal professionals can benefit and show not only acceptance but also highly useful exploitation of the technological developments in terms of the implementation of international agreements.
According to Koshzhanova Baktygul, the enforcement of international law could be accomplished through the blockchain. Taking that idea further, blockchain could strengthen the assurance that international law should not be a burden, as States might see it, and may actually be a tool for order in the world. When referring to the role of blockchain in international law, Baktygul cites the speech of Prince Albert at the 1851 International Exhibition in London: “Nobody who has paid any attention to the peculiar features of our present era will doubt for a moment that we are living a period of the most wonderful transition which tends rapidly to accomplish that great end to which indeed all history points – the realization of the unity of humankind.” Baktygul argues that this is the exact change that is coming to life through blockchain and would bring authoritative power to international law. He states that, by being decentralized, blockchain perhaps allows itself to bypass domestic law, but international law could establish jurisdiction if States are able to reach agreement (Baktygul Reference Baktygul2023). There is no better time for stepping forward with the application of BCT to the implementation of international treaties. At the time of writing, the international community is preparing for the Our Ocean Conference 2025 to promote global actions for a sustainable ocean and to discuss “Ocean Digital,” a concept that brings together the ocean industry and digital technology to serve as an implementation tool to achieve a sustainable ocean.
8.3 Advantages and Disadvantages of Using BCT
There are numerous advantages in the application of BCT to the implementation of the international law of the sea and to ocean governance. The technology enables the recording of data and information in a ledger, safeguards the authenticity and security of such data, and ensures that the data are not corrupted or manipulated. In addition, the entries are time-stamped, which enables the traceability and tracking of transactions. The technology also ensures that all stakeholders can immediately access the data stored on the blockchain. The necessity of repeated key-in is avoided, making the processes based on BCT faster, cheaper, and more effective. The supervision and control of documents and processes by authorities are easier than with traditional paper-based solutions. When accidents or incidents do occur, information sharing can be immediate, enabling faster decision-making and reaction. BCT can improve the quality of supply and value chains. It can combat fraud and, with the involvement of local communities, offer incentives for environmentally friendly behaviors that can mitigate poverty. Considering all of these factors, BCT can accelerate the achievement of SDG 14.
Individuals and NGOs are already using BCT to protect the marine environment. It is now time for governments and international organizations to harness BCT and benefit from its potential to solve global challenges (Buckup and Waughray Reference Buckup and Waughray2020). For this purpose, close cooperation between the sectors that already have experience with BCT and the governments and international organizations is required, together with the establishing of appropriate safeguards in order to build trust in the technology. From a technological point of view, the most important aspect of such cooperation is to harmonize the blockchain platforms to be used at an early-enough stage in order to avoid unnecessary costs, which are generated by using different platforms. A blockchain platform is the software on which the blockchain is built (for example, ethereum, solana, hyperledger fabric, and corda). Blockchain platforms differ in the consensus mechanism they are using (the most widely used are Proof of Work and Proof of Stake), resulting in differences in speed, stability, and the level of decentralization.
If the international community is now willing and inclined to collaborate, implementing BCT to comply with the obligations imposed by international treaties could be fruitful and more rapid. Also, the costs of implementing BCT could be borne by governments or by international funds, encouraging private actors to participate in the use of technology. Institutional openness can contribute to technological progress; therefore, an international organization could play a leading role by serving as an example of how to use BCT. In this way, the organization could also increase public trust in the technology. Roger Brownsword goes so far as to suggest setting up an international agency to deal with emerging technologies, with a special focus on legal and regulatory issues (Brownsword Reference Brownsword2022). The agency would serve as an intelligence hub and would be the result of a natural evolution from the network of national and regional hubs. This correlates with the author’s idea above of building up the use of BCT within the international organizational environment, based on the experience of local or regional private (both individual and corporate) or nongovernmental communities that are already successfully applying the technology.
The disadvantages of BCT are its high costs, the relevance of choosing the right blockchain platform, and the potential for integration problems. Introducing a new technology into an already existing system, or setting up a totally new system or process for that purpose, obviously requires significant investment. Developers need to be paid for their time, and there is also a price for the technology as a product. Training staff, as well as those who will be using the technology, requires much effort and expense. In addition, consulting fees must be paid when resolving the integration of the new technology into the existing system. The cost-effectiveness of using BCT will be evident only on a long-term basis. Also, when choosing the right blockchain platform for a given task, careful consideration must be given in order to avoid any future problems. The platform must suit the requirements of the task, and interoperability must be fulfilled. However, these tasks are usually performed by the software-producing organization contracted for the development of the blockchain (Farshidi et al. Reference Farshidi, Jansen, España and Verkleij2020). Integration issues – meaning that BCT is usually applied in an already-existing system or must communicate or be compatible with an already-existing technological environment – must be handled as well; this is also the responsibility of the developers or consulting experts. However, governments and international organizations must be aware of the necessity of disclosing and communicating all relevant information regarding the existing technological environment in its widest possible aspect (Rosencrance Reference Rosencrance2023).
Next, the author demonstrates how, by assisting in the implementation of the treaties of the international law of the sea, BCT can serve the protection of community interests at sea and accelerate the SDGs.
8.4 Blockchain Technology in Resources and the Environment
8.4.1 Conservation of Marine Living Resources
Ocean policy handles the conservation of marine living resources through planned resource management to prevent overexploitation. These processes include determining the allowable catch and the capacity to harvest natural resources. For monitoring and measuring excess capacity at the international level, clear definitions and measures are required to develop international consensus and cooperation for global and regional plans of action to monitor and reduce excess capacity (Kirkley and Squires Reference Kirkley and Squires2018). The governments engaged in determining the Total Allowable Catch (TAC) are allocating Individual Fishing Quotas (IFQs) to individual fishers who effectively own this share of the fish stock. If a fish stock increases, governments can increase TACs and fishers can then catch more fish. In the case of Individual Transferable Quotas (ITQs), a fisher can also sell or lease their quota; thus, the value of their “stock” increases with increasing fish stock (Douglas Reference Douglas2018). IFQs are based on the catching history of the individual fishers, meaning that providing data to the governments about the number of fishers’ catches is essential in determining IFQs and, therefore, TACs. According to the FAO, less than 40 percent of nations have adequate datasets on what their fishers are catching. This is especially concerning in developing countries, where, very probably, the fishers are not comfortable with giving access to their fishing history data. In these circumstances, the solutions that blockchain-based projects can provide are of great benefit to ocean governance.
One example is the Fishcoin project, which incentivizes fishers as well as other stakeholders in the fishery supply chain to share data. When they enter data about their catches into the database, they receive a certain amount of cryptocurrency called Fishcoin. Both the cryptocurrency and the activities of entering and sharing data into the system use BCT. Through the widespread adaptation of Fishcoin or similar projects, data-sharing can be not only encouraged but also used as a tool for combating illegal fishing by giving credibility only to those catches registered in the project databases.
Another example is the World Wildlife Foundation’s blockchain project From Bait to Plate, which aims to track tuna catches with the assistance of BCT. Fish caught are tagged with Radio Frequency Identification and allocated a QR code, allowing them to be traced to the final retail delivery. Thanks to the benefits of the BCT, tuna-fishing could be more controlled and its sustainability could be achieved (Velasco González-Camino Reference Velasco González-Camino2019). In this way, the legality of the catch can be ensured and proved in a trusted way to the consumer. Shermin Voshmgir, a blockchain expert and social scientist, called this project the best practice approach to the implementation of blockchain in supply chains in the context of developing countries (Voshmgir et al. Reference Voshmgir, Wildenberg, Rammel and Novakovic2019). However, it should be noted that when applying BCT in different projects, different types of technologies should be chosen and adapted, using different platforms, and the forms of data collection shall be adjusted to the level of traceability (Pita and Costa Reference Pita and Costa2023).
8.4.2 Protection of the Marine Environment
When we think about the protection of the marine environment, the most obvious use of BCT is tracking and tracing the pollution itself. This tool can be used for most types of marine pollution, whether originating from land, vessels, or seabed activities or from dumping at sea. Sensing pollution at its source – either with various sensing devices or, according to the recent trends, with autonomous robots (Islam et al. Reference Islam, Sadia, Masuduzzaman and Shin2020) – and then entering the sensing data into BCT-based databases allow the use of BCT for tracking and tracing the waste from its source to the disposal. The life cycle and journey of the waste, which has been entered into a digital record created in that way, can then be traced and controlled easily. The same method might be applied to the plastic debris removed from the ocean to ensure traceability and transparency through its journey to the disposal site. The benefits of blockchain – such as the formalization of the recycling profession, the creation of economic benefits, global cooperation, the introduction of digital currency systems, increased transaction security, and a transparent and efficient recycling chain – in marine debris management have already been studied and proven (Gong et al. Reference Gong, Wang, Frei, Wang and Zhao2022).
The blockchain-based project called ReSea uses the above method, with local collectors of plastic waste entering data into the system by using their smartphones. The Project Plastic Bank identifies the places in the world that are the largest sources of land-based plastic pollution and incentivizes local individuals to gather plastic materials and exchange them for money and access to social benefits. Diatom DAO is a community-driven decentralized autonomous organization (DAO) aiming to help reduce the plastic in oceans and, in this way, contribute to the protection of the marine environment. The blockchain-based project is incentivizing individuals and organizations by providing them with tokenized Plastic Removal Credits for proven plastic removal. These tokens can then be bought by governments or institutions to offset their carbon footprint. Finally, the funds collected in this way are used to fund projects that aim to remove plastic from the oceans (Diordievic Reference Diordievicn.d.). One of the most innovative aspects of the project is that the plastic removed is classified and the tokens provided as incentives are distributed according to that classification. In this way, fair distribution is guaranteed.
8.4.3 Conservation of Marine Biological Diversity
In the field of the conservation of marine biological diversity, BCT could be applied in the surveillance of MPAs. BCT applications are already used in monitoring systems, and scholars are suggesting applying the technology for environmental monitoring. The advantage of using BCT in maritime monitoring systems is that, because the technology is secure, it resolves the cybersecurity issue faced by traditional technologies. BCT also ensures the integrity, authenticity, and availability of relevant navigation data (Freire et al. Reference Freire, Melo, do Nascimento, Nascimento and de Sá2022). The COVID-19 pandemic has proven that MPA management needs to be supported by innovative technologies, tools, and ethical financing mechanisms that are not only effective but also resilient (Phua et al. Reference Phua, Andradi-Brown, Mangubhai, Ahmadia, Mahajan, Larsen, Friel, Reichelt, Hockings, Gill, Veverka, Anderson, Augustave, Ahmad, Bervoets, Brayne, Djohani, Kawaka, Kyne, Ndagala, Oates, Osuka, Prvan, Shah, Vallarola, Wenzel, Widodo and Wells2021). Dominic Waughray, the head of the World Economic Forum’s Centre for Global Public Goods, has argued that blockchain could help to enforce the new High Seas Treaty by tracking fishing on the high seas and identifying illegal behavior (Scruggs Reference Scruggs2018). These improvements are also necessary for achieving SDG 14. In March 2018, the Blockchain Commission and the UN Development Programme issued a white paper titled “The Future Is Decentralised: Block Chains, Distributed Ledgers, & the Future of Sustainable Development” (Wigley and Cary Reference Wigley and Cary2017). The paper recognized that BCT-based pilot projects have demonstrated the viability and benefits of employing the technology for the public good and that BCT can, therefore, be a valuable tool for governments, regulators, private companies, and civil society to establish trust, tackle corruption, and distribute resources. Consequently, it is an appropriate tool for accelerating the achievement of SDGs. As other scholars have argued, the history of biodiversity governance demonstrates the limited efficacy of conventional solutions and the lack of sufficiently powerful political coalitions to address the root causes of biodiversity loss. History also suggests that technological evolution is to a certain degree inevitable. In addition, technologies can catalyze structural social, political, and economic change, often in surprising ways (Rabitz et al. Reference Rabitz, Reynolds, Tsioumani, Visseren-Hamakers and Kok2022). Therefore, the use of new technologies, including BCT, should be introduced into environmental protection areas, like the conservation of marine biodiversity, through only after careful consideration and thorough technical and technological discussions and tests.
Two projects serve as examples of applying BCT to the implementation of obligations imposed on States by international treaties. Both examples are already working: the electronic bill of lading has been widely accepted among members of the international community, while the electronic CITES permission is still awaiting approval.
8.4.4 Electronic Data Interchange
Traditionally, bills of lading are paper documents for goods transported via shipping, based on which the possessor can demand delivery of the goods. Besides being a title, a bill of lading also serves as a receipt for the goods and the contract of carriage of goods by sea. Bills of lading constitute a template that contains data and information about the contracting parties, the shipment, and the goods. It must be signed by the shipper, in case it is required by the master, and later by the receiver. The preparation, signature, and transfer of the document, when it is paper-based, entail the risk of fraud, manipulation, human error, theft, loss, and, in many cases, delays in delivery. Article 8 of the Rotterdam Rules (UNGA 2009)Footnote 12 allows transporting the documents under the Convention in an electronic record should the carrier and the shipper consent to doing so. A digitalized version of the bill of lading – the electronic bill of lading (eB/L) – executes an electronic data interchange, sending data from one computer to another. The eB/L uses BCT to store the information and data entered and contained therein. The data and information are the same as in the paper-based form, as are the functions and purposes. However, the method of transmission is automatic in the case of eB/L. Legally, both versions have the same effect, but eB/L has many advantages compared to the traditional paper form. Due to its electronic nature and its use of BCT, eB/L is more secure and efficient. It is easier to track, its cost are lower, it has lower environmental impact, and it ensures easier compliance with regulatory obligations. It must be emphasized that blockchain systems can improve the process of data exchange in a way traditional systems cannot. Article 14(3) of the Hamburg RulesFootnote 13 also allows the electronic signature of the bill of lading. Literally, there is no legal obstacle in the relevant international maritime law to the use of eB/Ls. Consequently, eB/Ls have already been used and accepted as a practical solution that is more secure, reliable, rapid, and, most importantly, decentralized, allowing the interchange of data contained in the bill of lading without the need for intervention by any other party. The States allowing and benefiting from eB/Ls (such as Denmark, Estonia, Finland, France, Greece, Italy, the Korean Republic, the Netherlands, Norway, Spain, and Switzerland) are recognizing and regulating their use in the maritime industry in their national legislations. In doing so, they are accepting eB/Ls as valid and enforceable (Zhu et al. Reference Zhu, Cui and Zhang2022). Stakeholders of the supply chain (such as freight forwarders, shippers, ports and terminals, intermodal operators, ocean carriers, brokers, and government authorities) enjoy secure, transparent, and immediate data transfer through the eB/L. The information shared can easily be tracked and stored, with triggers for immediate action when and if necessary throughout the shipment’s journey. Thus, eB/L is a relevant example of when and how the international legal obligation can be implemented successfully with the assistance of BCT.
BIMCO (Baltic and International Maritime Council), one of the largest shipping associations in the world, has developed and published an eB/L (eB/L Standard) for the bulk shipping sector. Historically, the possibility of using eB/Ls has been present in the industry for more than two decades, but the obstacles (mainly the lack of interoperability) that prevented its use could not be overcome. Setting up a standard for the eB/L means that the users of such a standard can enjoy the smooth transmission of their eB/Ls through the available platforms.
According to Ali Abbas Khayoon Al-Naseri, electronic transport records can perform the first two functions of traditional paper bills of lading – that is, as receipts for goods and as containing or evidencing the contract of carriage of goods under the Rotterdam Rules. He also concludes in his PhD thesis that negotiable eB/Ls or electronic transport records can function as documents of title that are equivalent to negotiable paper bills of lading under the Rotterdam Rules and other model laws and contract forms (Al-Naseri Reference Al-Naseri2020, 247–248).
8.4.5 Electronic Permitting
According to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES),Footnote 14 the international trade (export, import, reexport, and introduction from the sea) of the endangered species listed in its Annexes I–III is subject to a permit procedure. The difference between the species included in the Annexes is the level and extension of their endangerment. The contracting parties to the Convention are obliged to designate management authorities to deal with the administration of the permits. The system is aimed at restricting the international trade of endangered plants and animals to duly justified reasons (for example, scientific purposes or exhibition) and, in other cases, ensuring that specimens have been obtained legally and that their survival is being guaranteed. The CITES permit procedures form a complex system for which the conditions and requirements are laid down in the Convention itself. The export and reexport permits, for example, can be obtained only where an import permit has already been issued, which guarantees that the condition for the issuance of the export permit has been met. Originally and traditionally, the acquisition and issuance of CITES permits have been performed on paper, and the possession and representation of those paper-based documents during border control or official inspections were necessary for the execution of the trade. The idea of an electronic CITES Permit System (eCITES) has been accepted by the Conference of the Parties in Resolution 12.3 (CITES COP 2022), on permits and certificates, and its implementation has been elaborated in several other resolutions and decisions. The underlying motivation is a smoother and more transparent implementation of the Convention. The BCT provides a secure solution for cooperation and rapid information exchange among all stakeholders and eases the work of the national governance in combating illegal trade. The framework of eCITES, as an online permit system, has already been detailed and is operational. The contracting parties have already begun its implementation, with some of them partially introducing the framework. The Secretariat of the Convention manages the digital toolkit for implementing the system.
The eCITES governance is a perfect example of how administrative procedures that aim to implement an international treaty can be managed by harnessing the power of emerging technologies. The governance is provided by a so-called Intersessional Working Group on Electronic Systems and Information Technology, and a Task Force has been established to share experiences and information related to the piloting and testing of eCITES. The standard implementation approach is stipulated in the eCITES Implementation Framework, which provides guidance for country managers to implement the system locally. Moreover, the toolkit is available for ensuring harmonious formats, protocols, and standards within the system. In addition, the Secretariat provides advisory services and support for the implementation of eCITES, subject to the availability of funding.
Because of its partial implementation, eCITES still awaits the approval of the international community. However, its practical solution can be used as an analogy for the permitting system under the international law of the sea. It is important to mention here that the acceptance of the technology can be strengthened if BCT is supported in more than one field of international law, with its use and application becoming more widespread. This would entail the significance and acceptance of BCT becoming stronger in the implementation of international treaties. One step forward in raising trust in the system was achieved on April 2, 2024, when the CITES Secretariat received the prestigious Trade Facilitation Innovation Award from the Asia Pacific Trade Facilitation Forum in recognition of the Convention’s electronic permitting systems. The Secretariat highlighted the comprehensive set of standards, tools, and guidance for eCITES implementation and its benefits to the parties. According to the Secretariat, along with other benefits, eCITES has contributed to the SDGs – specifically SDG 13 (Climate Action), SDG 14 (Life Below Water), SDG15 (Life on Land), and SDG17 (Partnerships for the Goals) – by increasing access to reliable wildlife data; improving sustainability, legality, and traceability of wildlife trade; and enhancing economic opportunities for Indigenous peoples and local communities involved in trade.
8.5 Legal and Regulatory Challenges
How the BCT is designed and implemented influences the type of situation to which it is applied. The diversity of possible applications entails that BCT can raise many different legal issues, both international and domestic. The use of BCT is encouraged only where the end product (database or software) or the process is legally valid and enforceable. Widespread exploitation of BCT would be supported where digital documents are acceptable – not only in business but also, for example, before courts and government authorities. The legal route for achieving this is twofold: setting up an international legal framework for regulating technology and its use, and/or implementing domestic laws and regulations. As seen in the previous chapters, some international treaties reference the use of electronic means of recording and signature, and national laws have begun to regulate crypto assets. However, BCT itself, for the time being, does not have any specific international treaty or domestic legal regulation. Some scholars even claim that it merely subsists outside of the legal realm, which raises several questions and concerns (De Filippi et al. Reference De Filippi, Mannan and Reijers2022).
First, in order to provide regulatory certainty, all technicalities of BCT should be listed and understood by the regulators so that they are able to draft relevant legislation. Considering the rapid developments and constant changes in technology, this is almost – if not completely – impossible. Therefore, regulators face the same problem as with any other emerging technology. However, this should not be an obstacle to regulation. It is enough counterargument simply to refer to the recent adoption of the world’s first comprehensive AI law, the European Union’s Artificial Intelligence Act,Footnote 15 which, although applicable only at the regional level, is nonetheless a key milestone in the possibility of drafting and gaining acceptance, not to mention the harmonization of the regulation of emerging technologies among several national jurisdictions.
Another obstacle limiting the use of BCT is the lack of admissibility of the data and information stored in the blockchain as evidence in litigation processes before courts (Berto Reference Berto2019) or in other official procedures before authorities. According to both common law and continental law countries, most States are inclined to accept BCT data as evidence due to the trend of digital transformation in judicial administration worldwide. Consequently, in both criminal investigations (Li et al. Reference Li, Lal, Conti and Donghui2021) and civil procedures, the data and information stored in the blockchain might be used as evidence. However, the legal validation of this practice should be under domestic laws, which obviously would be encouraged where the international legal instruments also recognize BCT as a safe and trustable technology.
Because the data and information stored on the ledger are accessible to all stakeholders (anybody in public blockchain, and users with permissions in private blockchain), data privacy and data security, along with the protection of intellectual property, are valid legal concerns. These issues might be solved by ensuring that the system is technically secure and that the data entered into the public ledger do not contain confidential or legally protected information. With private or permissioned blockchain, the appropriate identification and strict permission rules need to apply to ensure that no unauthorized persons have access to the information stored on the blockchain.
As a solution to overcome the legal challenges of BCT, a regional hub – the European Blockchain Regulatory Sandbox (EBRS) – was created by the European Commission with the purpose of initiating regulatory dialogues to increase legal certainty for innovative blockchain solutions. The EBRS, which is open to EU member States and to Norway and Liechtenstein, is funded by the Digital Europe Programme. Companies, NGOs, and even public bodies might apply to participate. The program runs from 2023 to 2026, supporting twenty projects annually – including public sector use cases on the European Blockchain Services Infrastructure. Projects are chosen through calls for expressions of interest. The partnership cooperates closely with other EU initiatives, such as the EU Digital Finance Platform and the AI Sandboxes. Legal advice and regulatory guidance are given to members. The program also aims to identify and communicate best practices.
The European Commission’s third report on EU Blockchain Ecosystem Developments (EUBOF 2024) details significant growth in blockchain applications across various sectors, including finance, education, government services, and supply chain management. Particularly noteworthy is the adoption of blockchain in national infrastructures and public services, where countries such as Estonia and Lithuania have emerged as leaders. These nations have integrated BCT into government operations to enhance efficiency, transparency, and public trust.
Considering the legal challenges, the question of whether we need new international agreements for BCT is unavoidable. It is beyond any doubt that a general framework agreement would be useful to stipulate the importance and declare the legality of BCT. However, the lack of such an international treaty should not be an obstacle to applying the technology. National laws could and should deal with the legal rules to be applied for the BCT. Until then, soft law and best practices should provide enough guidance for allowing the safe and fruitful use of BCT.
8.6 Conclusion
As is obvious from the above examples, the conservation of marine living resources, the protection of the marine environment, and the conservation of marine biological diversity can benefit from the innovative solutions introduced by BCT, which has the ability to reduce the burden of documentation, ensure security and safety of data, eliminate fraud and human errors in processes, and avoid delays. Marine conservation and global seafood production networks have a trust problem (Howson Reference Howson2020). Through BCT, transparency is ensured when tracking fishing and any other activities throughout the whole supply chain. In dealing manually with the data and documentation that must be handled during international transactions, numerous actions must be repeated and the involvement of many different parties is unavoidable. In addition, the supervision of those documents and processes significantly slows down transactions. The use of BCT and other emerging technologies can assist in speeding up transactions along the whole supply and value chain, as well as providing for the security and safety of data, ensuring the rapid sharing of information in such a way that it contributes to efficient, trustable, and transparent processes. Contrary to manual systems, blockchain platforms are decentralized, which results in a system where all stakeholders (shipping companies, fisheries organizations, port authorities, and regulatory authorities) can access the same information instantly when they are registered in the ledger (Mumtaz et al. Reference Mumtaz, Bergey and Letch2024). Through this practice, not only accountability but also sustainability can be ensured, because the whole net is built up in a more secure and reliable way. Moreover, within regional fisheries organizations that play a crucial role in the conservation of marine resources, monetary incentives can be provided for encouraging positive environmental behavior. In addition, blockchain-based financing might also be used for secure, transparent, and trustable peer-to-peer financing in such a way that combating illegal fishing can also benefit from the technology (Pfreundt Reference Pfreundt2018).
One other significant aspect of BCT is its rapidity. When one enters data into the system, it becomes immediately accessible to other stakeholders. This feature can be especially important in the event of an incident – for example, if a dangerous substance is dumped into the sea – or a natural disaster, when a rapid response might be crucial in saving living creatures or preventing or eliminating the harm caused. International transactions can also benefit from this feature, as can value chains, where production, transport, and various stages of the supply chain can access all data entered without any delay. Performing these activities manually and through burdensome documentation, and under human supervision and control, impedes the rapid actions required by the circumstances in order to mitigate the consequences of an incident (Berman et al. Reference Berman, Zereik, Kapitonov, Bonsignorio, Khassanov, Oripova, Lonshakov and Bulatov2020).
Based on the obligations prescribed by the UNCLOS and other instruments of the international law of the sea, and taking into consideration the cases above, it is the author’s opinion that BCT might be used within the following areas to ensure a more rapid, cost-effective, and trustworthy solution for complying with the given obligation:
the conservation of marine living resources:
— allocating TACs;
— collecting and verifying data and information;
— monitoring compliance with the agreed rules, standards, and conservation measures;
— providing monetary incentives to regional coastal communities for encouraging positive behaviors; and
— peer-to-peer financing;
the protection of the marine environment:
— registering and entering pollution data;
— monitoring waste disposal activities at the source of pollution;
— tracking systems for waste management on ships in order to control dumping at sea; and
— setting up a harmonized reporting system; and
the conservation of marine biological diversity:
— conducting surveillance and management of MPAs.
Through application of BCT when implementing international law of the sea instruments, the conservation and sustainable use of the oceans and their resources – and “the future we want” – will be enhanced and accelerated. The advantages of BCT outweigh its disadvantages, making it an extraordinary tool for protecting the community interests at sea and for supporting the sustainable development of ocean governance. All three elements of the protection of the community interests at sea that have been analyzed in this chapter – the conservation of marine living resources, the protection of the marine environment, and the conservation of marine biological diversity – can benefit from the technology. The legal and regulatory challenges of BCT can be overcome, and although they should be considered carefully during the use of BCT, they should not be obstacles to its use. The author concludes that to harness the power of BCT, a new international agreement would be useful. However, the lack of such an agreement should not delay the use of the technology, since national rules and best practices could provide proper guidance and safeguards for the international community.
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