Development Opportunities for Pacific Island Countries Amid Global Supply Chain Restructuring: Pathways to Low-Carbon Trade Transformation through the Blue Economy

Abstract

This paper examines how Pacific Island countries can leverage the blue economy to transition to low-carbon trade amid global supply chain restructuring. The analysis highlights that, by capitalizing on abundant marine renewable energy and strategic geographical advantages, these countries can prioritize the development of low-carbon industries, such as blue ammonia and blue hydrogen, and integrate into global low-carbon trade networks through mechanisms such as green shipping corridors and low-carbon certification systems. Key strategies include establishing offshore renewable energy hydrogen facilities, advancing the blue ammonia industry, upgrading port infrastructure to create regional hydrogen supply hubs, and developing an internationally recognized "Pacific Blue Certification" system to increase the market competitiveness of low-carbon products. This study argues that, through policy coordination, regional collaboration, and effective risk management, Pacific Island Countries can move beyond traditional resource-dependent models, transitioning marine resource utilization from primary exploitation to high-value-added low-carbon trade. This approach offers a practical model for developing countries in the Global South to achieve synergies between climate governance and economic growth.