Building Momentum for FIPs in Asia - Amazon Web Services€¦ · Community of Practice Thematic...

© WWF-US / Molly Edmonds© WWF-US / Molly Edmonds WWF I Change footer to PPT Title

Building Momentum for FIPs in Asia

Geoffrey Muldoon

Overview and Introduction

AFRICA13SOUTH

AMERICA19

ASIA47

NORTH AMERICA

41

EUROPE11

C. AMERICA5

OCEANIA8

47 FIPs in Asia • 29 comprehensive• 12 basic• 6 prospective

8 4 10

Breakdown of SE Asia FIPs by Species Grouping

Top Ten targeted species in Asia by volume are:

- Japanese anchovy

- Indian Mackerel

- Spanish Mackerel

- Yellowstripe scad

- Kawakawa

- Yellowtail amberjack

Sea Around Us project

Community of Practice Thematic Priorities

Note the breakdown

- 92.3% very or extremely interested in addressing SSF challenges & opportunities

- 86.4% very or extremely interested in addressing market access

- 86.3% very or extremely interested in addressing innovation and new tools

- 94.2% moderately, very or extremely interested in addressing social issues

- Overlaps between themes

© Jürgen Freund / WWF

WWF I Change footer to PPT Title

• Lower scoring tool (below 60, assessment and guidance)

• Incentives (market AND non-market)

• Incorporating social and economic benefits as well as ecological

• Accessibility (cost and complexity) while maintaining credibility

• Market conditionality (non-market incentives, domestic markets)

• Capacity in terms of FIP implementers and government

• Greater government engagement – national level policy change

• Funding and FIP financing

Major Issues Identified in building FIP Momentum

© Meridith Kohut / WWF-US

Lower Scoring FisheriesAssessment and Guidance

© Meridith Kohut / WWF-US

Content to comematerial reputational experiential

reward examples

• Certification, Buyer pressure

• New market connections• Financial incentives

• New technologies/tools

• Value Chain improvement

• Awards/prizes

• Pride building

• Public announcements

• Media campaign

• Exchanges/tours

• Workshops/trainings

• Supply chain connections; Networking

outcomes

✓ ROI

✓ immediate action

✓ increased capacity

✓ Accountability

✓ Community pride

✓ Trust with buyers

✓ Community buy-in

✓ Trusted relationships

✓ loyalty

✓ increased capacity

sustained

valuelow medium high

Incentives

© Jürgen Freund / WWF


• Lower scoring tool (below 60, assessment and guidance)

• Incentives (market AND non-market)

• Incorporating social and economic benefits as well as ecological

• Accessibility (cost and complexity) while maintaining credibility

• Market conditionality (domestic markets)

• Capacity in terms of FIP implementers and government

• Greater government engagement & national level policy change

• Funding and FIP financing

Major Issues Identified in building FIP Momentum

Speaker and Topic Overview

• Han Han (China Blue) – Reality #1: The Importance of Government Participation

• Simon Bush (Wageningen University) – Reframing Sustained Fishery Improvement #1: Accessibility, scale and market conditionality

• Hoyt Peckahm (Ocean Outcomes) – Reframing Sustained Fishery Improvement #2: Equity, human well-being and the environment

• Lucy Holmes (WWF US) – Supporting Sustained Fishery Improvement: Financing FIPs in Asia-Pacific

• Pakawan Talawat (WWF Thailand) - Reality #2: The importance of capacity in delivering FIPs at scale

Break-Out Structure

• Four Break-out Groups

• Breakout #1: Government engagement and National Level FIPs

• Breakout #2: Strengthening capacity for FIP implementation

• Breakout #3: Broadening the FIP model

• Breakout #4: Accessibility and market conditionality

(Proposing to leave questions to be posted until after presentations)


© naturepl.com / Tim Laman / WWF

LETS GET STARTED

DATABASE @ SUPPLYCHAIN ENGAGEMENTCHINABLUE SUSTAINABILITY

The importance of government participation to expand FIPs in Asia

© Han Han Founder and Executive Director 2019/6/12

www.chinabluesustainability.org


Crisis

DATABASE @ SUPPLYCHAIN ENGAGEMENT

80% coastal water ecologically unhealthy

85% fish younger than 1 yr

>26 million fishermen, >300,000 vessles

High occurrence of disease, high food safety risk

Increase of seafood consumption

Fishing and sourcing impacts in the world

Coastal Fishery：overfishing


Governance from government alone is

not sustainable


17

A Snapshot of Coastal Fishery in China

Fragmented landscape of enforcement

Unregistered vessels, electrofishing (poaching), lost habitat

Diversity in size and gear

Double registration system, multiple-gear at the same

time, multi-species fishery

Fishery contributes significantly

NO. of vessels with different length in Hainan

Data Source: <Fishery Statistics Year Book of Hainan 2016>

The People's Government of Hainan Province

Local economy, employment, social stability,

cultural heritage


18

Where a lack

of regulation &

enforcement

persists

“

fishing communities

replaced by real estate and

tourism development


Changing Market

⚫ E-commerce with social

media/network encourage

“from Boat to Table”

business

⚫ Local consumption

continues growing

⚫ Value-adding services, from

Primary to Tertiary Industry


Missing blocks…

• No fishermen-based organization, weak influence from fishery co-op at present

• Limited knowledge about their social fabric components and dynamics

• No basic data (species, stock, biological and economic, etc.)• Fishery naturally formed with mixed species and gears, varying from season

to season

• No sufficient manpower and techniques within local government to enforce the management in the field

• Re-structured administration, inconsistency cross levels, uncertainties in accountability and responsibility


Take-Home Messages• China consists of a diverse market with players in various levels of

technical and institutional capacity.

• Government: opening-up to multiple players in governance as

facing a highly top-down political system as well as a dynamic

bottom-up business environment

• Rural area is the forefront market for the next decades, fishing

village revitalization is a key theme. How would fishery management

reform fit in the process?

• Coastal area, particularly in the southern/southeastern China, is

unique for its historical culture and economic development.

More questions, email to [email protected]

mailto:[email protected]

Rethinking fisheries improvement in

Southeast Asia

Simon Bush

Environmental Policy Group, Wageningen University

Photo: Megan Bailey

Market-led seafood improvement

Bush and Oosterveer 2015, Sustainability

35% in pre-assessment already comply with MSC standards

65% in PA don’t get to full MSC assessment

Improvementprojects

Credibility

Accessibility Continualimprovement

‘Devilstriangle’

Certification/FIP conundrum

Developing world

producers?

Best performing producers?

Untenable?

Bush et al. 2013, Marine Policy

Questionable credibility

▪Evidence that developing world FIPs stagnating when market access granted

▪Undermining credibility of certification if stagnation continues

▪Need for greater conditionality for market access from buyers

Sampson et al. 2015, Science

Coordination ‘failure’

Imperfect measurement and market competition leads to ...

▪Multiple claims from multiple labels

▪Mismatch of incentives at different points in value chains

▪New challenge of avoiding ‘coordination failures’

What determines accessibility?

▪Risk takers more likely to choose for top down FIPs because of chance of higher (quality-based) pricing.

▪Risk averse fishers more likely to choose for bottom up FIPs characterised by bulk buying and debt-tied relations.

Tolentino et al. 2015, PlosOne

0 20 40 60 80 100

Total

Thailand

Vietnam

Indonesia

China

India

Myanmar

Bangladesh

Philippines

Brazil

Egypt

Aquaculture export Aquaculture domestic

Capture fishery export Capture fishery domestic

Belton et al. 2018, Global Food Security

Dominance of domestic markets

Innovations for fisheries improvement?

▪ New or existing ‘Brand exposed’ sustainable seafood aggregators

▪ Explicitly tailored sustainability claims

▪ Tiered portfolios (gold, silver, bronze) of improvement pathways

▪ Overcome coordination failures associated with multiple claims

Comprehensive FIP

Basic FIP

MSC

‘STOCK’ PORTFOLIO

Impro

vem

ent

Rohiem et al. (In Review.)

Innovation 1: Overcome coordination failures

Innovation 1: Overcome coordination failures

Roheim et al. 2018, Nat. Sust.

New roles for existing organisations?

Innovation 2: Shift to buyer certification

▪ Increased assurance that market access is conditional on measurable improvement

▪Recognition of actions already taken by buyers

▪ Extended version of equator principles on responsible investment?

Retailers, brands, importers subjects of certification

Bush 2016, Solutions

NGO

NormsRetail

ProducerState

Reg.

Innovation 3: Reverse burden of proof

Middlemen Processor Exporter Buyer

RFMOLicenceRegister

▪ IUU to LRR fisheries

▪ Inclusion as a the rule

▪ Exclusion as a condition

▪ Higher spatial aggregate

Credibility

Accessibility Continualimprovement

‘Devilstriangle’

The FIP conundrum

Triple Impact

FIPsimproving fisheries’ social,

economic and enviro

performance

Why triple impact FIPs?


Sustainable fishing means leaving enough fish in the ocean, respecting

habitats and ensuring people who depend on fishing can maintain their

livelihoods.

Distribution of costs and benefits of

improvement

• Costs forced down supply chains

• Benefits retained by buyers

→ Livelihoods eroded/erased?

Sampson et al

2015,

Blomquist et al

2015,

Stemle et al 2016,

Wilderness

Markets 2018

Etc…


• FIPs proliferating

• 68% in developing countries (Max Levine, CEA)

• Fishing livelihoods crucial and irreplaceable


Triple Impact FIP Evaluation Framework

• Assess and mitigate risk

• Baseline for M&E

• Diagnose where improvements necessary

• Design integrated improvement

Objectives

Triple Impact FIP Evaluation Framework

Environmental - Rapid Assessment Methodology

O2/SFP/WWF for OSMI

Social – Assessment Tool for Social Responsibility

CI, CASS, and Coalition for Socially Responsible Seafood

Financial – Business Capacity Assessment Methodology

O2/SmartFish/Wilderness Markets

Performance dimensions

Triple Impact FIP Evaluation FrameworkEnvironmental dimensionO2/SFP/WWF

Principles - MSC

1. Stock status

2. Ecosystem impacts

3. Management

Rapid Assessment Tool (January 2018)

Triple Impact FIP Evaluation FrameworkSocial dimensionCI, CASS, and Coalition

Social principles

1. Protect labor rights, dignity and access to

resources

2. Ensure equality and equitable opportunity to

benefit

3. Improve food, nutrition, and livelihood security

Assessment Tool for Social Responsibility

Triple Impact FIP Evaluation FrameworkFinancial dimensionO2, SmartFish AC, Wilderness Markets

Financial principles

1. Organizational capacity

2. Operational capacity

3. Market Position

Business Capacity Assessment Methodology

Natividad Island Yellowtail

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Buildings

Water and ice

Bait quality

Cleanliness anddisinfection

Chemicals

Pest control

Health protocols

Product managment

Marine saftey*

Quality fresh fish*

Changes in Handling Practices

Example – financial assessment

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Buildings

Water and ice

Bait quality

Cleanliness anddisinfection

Chemicals

Pest control

Health protocols

Product managment

Marine saftey*

Quality fresh fish*

Changes in Handling Practices

Example – financial assessment



Business

Social

Enviro

20182014

Performance levels

*Raising environmental score further requires regional data for a stock assessment that is beyond the purview of the coop

FIP enviro

performance

FIP financial

performance

Pathway to implementing triple impact FIPs

FIP social performance

Due diligence

completed

Triple Impact FIPsEnvironmental dimension

Jocelyn Drugan –

[email protected]

Social dimensionJuno Fitzpatrick -

[email protected]

Financial dimensionNeel Inamdar -

[email protected]

Cecilia Blasco – [email protected]

Triple Impact FIPs

Hoyt Peckham – [email protected]

Accelerating and building momentum for FIPs in Asia Pacific

Lucy HolmesSenior Programme Manager Seafood Markets and FinanceWWF-US

FIPs and Finance

Risk in fishery supply chains

• Operational

• Reputational

• Market

• Regulatory

….FIPs are a key tool to de-risk supply chains and fishery investment

Mil

lio

n t

on

ne

s

0

50

100

150

200

250

1950 1977 1994 20301968 1986 2003 20121959 2020

Source: FAO/KA

Aquaculture

Capture

Security of supplyAvailability and affordability of raw material

Stagnant growth

High and volatile growth

Market, regulatory and reputational risks

FIP Participant Modele.g Vietnamese handline tuna fishery

Tuna buyers have switched from $8000 USD flat fee to $0.02 USD per kg (20USD per MT) of tuna exported

Integrating cost of FIP into business model and creating equitable collaborative platform amongst buyers

Revenue streams can be used as collateral against public/private loans to pay for upfront and ongoing costs of transition

Crab Council model

‘Long-term’ contracts and value chain finance

Financial incentives: ‘Blue’ credit lines

Extended to SMEs in a Fishery Improvement

Project

www.seafoodsustainability.org/industry/business-case

Capacity and delivering FIPs at scale

© flyfishingrussia.blogspot.com © ellliorteskeyphotography.com

Pakawan Talawat

Fishery Project Manager

WWF-Thailand

Current Situation Locally - Understanding

Knowledge and Understanding

▪ Starting point iso Little or no appreciation of the FIP frameworko Little or no understanding of stakeholder role in step-wise

implementation of FIPs

▪ Setting up working group and committeeto manage specific resources and implementFIPs

Getting stakeholders (government, industryetc.) engaged & knowledgeable on benefits of FIP framework and expectations of FIP roles

Personnel• Limited capacity in govt., NGO, and industry (trade associations) to take

on ‘new’ FIP commitment• Need to link FIP activities and deliverables to day-to-day role of

government staff• Restructuring of government staff – link to understanding FIP• FIP staff from industry

Funding• Lack of dedicated government funding FIP implementation• Reliance on NGO, donors and industry (e.g. TFFA, TTIA) to raise funds

and share implementation cost• Get funding from research agency for new data collection

Current Situation Locally - Resources

What can/has been done to build capacity?

Knowledge• Capacity building and training workshop for Thai stakeholders by

MSC/NGO• Use of knowledge sharing platform (regional level/various FIPs) and BSC

FIP managers annual meeting

Personnel• Use of undergrads/graduated students to collect and collate data to

monitor stock status (e.g. BSC Sri Lanka & Indonesia) – link to funding• University professors to fill gaps on scientific data• Establish in-house government ‘FIP staff’

Funding• FIP participant model

What is missing/needed?

Knowledge• Lead of each org should understand the FIP, work plan, and progress• More involvement of fishers in FIPs• Putting FIP into university curriculum – preparing next-gen personnel

Personnel• Putting FIP work in year plan of government – credit to staff who work for FIPs and

funding to the FIPs, avoid seeing FIPs are additional work• Additional FIP staff both from NGO and industry – want more FIPs/scaling up

Funding• Having a good funding model and commitment from key players in supply chain to

invest in FIPs

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