In a new publication we make a case for investing in large marine ecosystems based on the future value of recovered fish stocks. If successful we will solve one of the most pressing problem facing our oceans which is how to bridge the economically challenging transition period required to rebuild and maintain sustainable fisheries. This is part of a larger WWF global Smart Fishing initiative centred on our work on Grand Banks.Raising the ‘‘Sunken Billions’’: Financing the transition to sustainable fisheries. Robert W. Rangeley & Robin W.D. Davies. 2012. Marine Policy 36: 1044–1046. A b s t r a c tLong-term investment to drive the adoption of precautionary, adaptive and resilience-building fisheries management measures is urgently required, especially given the financially difficult transition period to reach sustainable fisheries. In this paper a case for investing in the recovery of large marine ecosystems is provided based on the future value of recovered fish stocks. It is argued that the current market-based sustainable seafood movement alone will not affect the scale of change needed and must be complemented by investment in fundamental conservation measures that will lead to the recovery of marine ecosystems and promote long-term sustainable use. A rationale for addressing the economically challenging transition period is provided and the basis of a new financial institution to finance the measures necessary for realising the economic, social and environmental benefits of large scale fisheries reform is proposed.
year 1900 where fish production is expressed as tons of fish per km2 where red is >11 tons and light blue is less than 1 ton. Recovery would move in this direction from the levels of depletion estimated to have occurred by the year 2000.
My starting point is where Robin left off explaining the concept of the FIRME model. Recall that the main purpose of the model, that we dubbed the “FIRME”, is to help drive recovery and sustainable fishery use of marine ecosystems through Implementation of Conservation management measures. The assumption is that this will result in Growth of Ecosystem Services.So, we are trying to make a case for investing in the recovery of large marine ecosystems based on the future value of recovered fish stocks with our first pilot -- the Grand Banks.I’ll show some steps involved to date.
World Wildlife Fund Banking on Cod: Finance Lab at the Social Finance Forum 2012
for a living planet Raising the ‘Sunken Billions’: Financing the transition to sustainable fisheries* Dr. Robert Rangeley WWF-Canada 2012 Social Finance Forum: Measuring up* Robert W. Rangeley & Robin W.D. Davies. 2012. Marine Policy 36: 1044–1046.
WWF’s Fisheries Financing StrategyObjective: Generate new, long-term, and diversified sourcesof revenue for fisheries conservation. Grand Banks PilotWWF Global Initiatives Creating Sustainable Investment Standards Reform fisheries subsidies (eliminate subsidized overfishing) Develop investments for fisheries reform & ecosystem recovery
Problem: Current Practices are UnsustainableDemand Supply 2.6 billion people 85% depleted, fully or overexploited $100b industry 38% decline in fisheries abundance demand increasing $50b lost per year population growth increasing Production could meet future demand demand for sustainable seafood Biodiversity benefits are 10-100 times increasing the cost of maintenance Fish in the year 1900 Fish in the year 2000 Christensen et al. 2003, Fish & Fisheries
Solution: Investing in Nature Sunken Billions: One estimate put the Returns value of recoveredValue fisheries of the Grand Security Banks ecosystem at $1 Socio- billion per year. economic Profitability Fisheries Productivity Ecosystem Recovery Investment 5 Time
Our Work: WWF & Banking on Cod Groundwork: We’ve done the basic research, published papers and consulted widely. Fishery Stakeholder relations: Range from harvesters and processors - small and corporate scale, to local and national experts, as well as government agencies. There’s a growing interest in the social value of the work, in addition to the economic benefits. Strategic Initiatives: e.g. Fisheries improvement projects; Smart gear competitions Goal: to create a self-sustaining financial institution that will complement the economic incentives created by sustainable seafood markets. In the first proposed pilot, the Grand Banks of Newfoundland, WWF is building a case for investing based on the future value of recovered fish stocks.
Model: Financial Institution for Recovery of Marine Ecosystems Enable fisheries and INVESTORS BUSINESS ecosystems to recover PLAN by providing financial FiSHERY security to fishermenENTERPRISES and businesses that FIRME depend on it. $ $ Intermediary providing RETURN ON LOAN loans to be repaid INVESTMENT when a fishery returns to profitability. Board and expert committees keeping an eye on the long-term GROWTH IN IMPLEMENTATION ECOSYSTEM OF MANAGEMENT recovery goals. SERVICES MEASURES Will recycle its capital and pay interest from RECOVERY & the additional allocation SUSTAINABILITY of catches when production increases.
Challenge: The Right Scale New and innovative financing could be applied to Grand Banks recovery. BUT, conservation takes time, so capital would have to be patient and expectations need to be reasonable. SO, how do we scale-up the initiative? If we start too small, it could take too long to achieve meaningful impact and financial returns. Very large initial deals may fail to attract investment for an untested initiative.Key Question: What should an early win look like and howcould it be quickly leveraged within the pilot and to otherregions?
Thank YouDr. Robert Rangeley, WWF CanadaRRangeley@WWFCanada.org