building momentum for fips in asia - amazon web services€¦ · community of practice thematic...
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© 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
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AFRICA13SOUTH
AMERICA19
ASIA47
NORTH AMERICA
41
EUROPE11
C. AMERICA5
OCEANIA8
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47 FIPs in Asia • 29 comprehensive• 12 basic• 6 prospective
8 4 10
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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
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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
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© 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
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© Meridith Kohut / WWF-US
Lower Scoring FisheriesAssessment and Guidance
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© 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
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© 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 (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
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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
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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)
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WWF I Change footer to PPT Title
© naturepl.com / Tim Laman / WWF
LETS GET STARTED
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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
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DATABASE @ SUPPLYCHAIN ENGAGEMENTCHINABLUE SUSTAINABILITY
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
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DATABASE @ SUPPLYCHAIN ENGAGEMENTCHINABLUE SUSTAINABILITY
Governance from government alone is
not sustainable
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DATABASE @ SUPPLYCHAIN ENGAGEMENTCHINABLUE SUSTAINABILITY
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
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DATABASE @ SUPPLYCHAIN ENGAGEMENTCHINABLUE SUSTAINABILITY
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Where a lack
of regulation &
enforcement
persists
“
fishing communities
replaced by real estate and
tourism development
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DATABASE @ SUPPLYCHAIN ENGAGEMENTCHINABLUE SUSTAINABILITY
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
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DATABASE @ SUPPLYCHAIN ENGAGEMENTCHINABLUE SUSTAINABILITY
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DATABASE @ SUPPLYCHAIN ENGAGEMENTCHINABLUE SUSTAINABILITY
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
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DATABASE @ SUPPLYCHAIN ENGAGEMENTCHINABLUE SUSTAINABILITY
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]
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Rethinking fisheries improvement in
Southeast Asia
Simon Bush
Environmental Policy Group, Wageningen University
Photo: Megan Bailey
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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
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Credibility
Accessibility Continualimprovement
‘Devilstriangle’
Certification/FIP conundrum
Developing world
producers?
Best performing producers?
Untenable?
Bush et al. 2013, Marine Policy
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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
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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’
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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
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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
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Innovations for fisheries improvement?
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▪ 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
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Innovation 1: Overcome coordination failures
Roheim et al. 2018, Nat. Sust.
New roles for existing organisations?
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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.
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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
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Credibility
Accessibility Continualimprovement
‘Devilstriangle’
The FIP conundrum
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Triple Impact
FIPsimproving fisheries’ social,
economic and enviro
performance
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Why triple impact FIPs?
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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.
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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…
Why triple impact FIPs?
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• FIPs proliferating
• 68% in developing countries (Max Levine, CEA)
• Fishing livelihoods crucial and irreplaceable
Why triple impact FIPs?
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Triple Impact FIP Evaluation Framework
• Assess and mitigate risk
• Baseline for M&E
• Diagnose where improvements necessary
• Design integrated improvement
Objectives
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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
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Triple Impact FIP Evaluation FrameworkEnvironmental dimensionO2/SFP/WWF
Principles - MSC
1. Stock status
2. Ecosystem impacts
3. Management
Rapid Assessment Tool (January 2018)
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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
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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
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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
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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
Natividad Island Yellowtail
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Natividad Island Yellowtail
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
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Natividad Island Yellowtail
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
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FIP enviro
performance
FIP financial
performance
Pathway to implementing triple impact FIPs
FIP social performance
Due diligence
completed
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Triple Impact FIPsEnvironmental dimension
Jocelyn Drugan –
Social dimensionJuno Fitzpatrick -
Financial dimensionNeel Inamdar -
Cecilia Blasco – [email protected]
Triple Impact FIPs
Hoyt Peckham – [email protected]
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Accelerating and building momentum for FIPs in Asia Pacific
Lucy HolmesSenior Programme Manager Seafood Markets and FinanceWWF-US
FIPs and Finance
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Risk in fishery supply chains
• Operational
• Reputational
• Market
• Regulatory
….FIPs are a key tool to de-risk supply chains and fishery investment
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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
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Market, regulatory and reputational risks
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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
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Crab Council model
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‘Long-term’ contracts and value chain finance
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Financial incentives: ‘Blue’ credit lines
Extended to SMEs in a Fishery Improvement
Project
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www.seafoodsustainability.org/industry/business-case
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Capacity and delivering FIPs at scale
© flyfishingrussia.blogspot.com © ellliorteskeyphotography.com
Pakawan Talawat
Fishery Project Manager
WWF-Thailand
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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
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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
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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
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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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