Sustainable finance is critical to scaling the transition towards more sustainable fisheries. New sustainable, efficient, equitable, and cost-effective models are needed to lead the way towards the establishment of a sustainable blue economy. To respond to this need, World Wildlife Fund (WWF), in partnership with Finance Earth (FE) and through a multi-stakeholder collaboration, designed and launched a new financing mechanism aimed at fishery transition. Finance Earth, a leading impact investment advisory and fund manager with a track record in break-through social and environmental financing models, will establish and manage this new mechanism – the Fisheries Improvement Fund (FIF). The ambition is to catalyze more than $100 million in investment in fisheries improvement by 2030. This model, designed in collaboration with leading industry players, will unlock new pathways to fund global fisheries recovery at a scale that can match the size of the challenge.
Leadership in the Blue Economy: Financing Fishery Recovery
Towards a Fisheries Improvement Fund
World Wildlife Fund (WWF), in collaboration with Finance Earth (FE), has been working to develop the concept for an innovative blue finance mechanism – the Fisheries Improvement Fund – with the aim of reversing the global trend of fisheries decline. Sustainable finance is critical to scaling the transition towards more sustainable fisheries; we need new models that are efficient, equitable, and cost effective for key stakeholders. We believe that testing and proving innovative concepts in the real world, such as this, are critical to the establishment of a sustainable blue economy.
The concept of this blue finance mechanism – the Fisheries Improvement Fund (FIF) – is to raise upfront funding to support the implementation of Fishery Improvement Projects (FIPs) by experienced partners on the ground and establish an equitable and scalable repayment mechanism based on a volume-based fee contributed by participating companies. This innovative approach is based on a clear and compelling business case for companies to invest in the long-term viability of their seafood supplies, thus reducing supply chain volatility and mitigating legal, shareholder, and supply chain risk while enhancing business value and protecting brand reputation. It allows for capital to be deployed at speed and scale to target fisheries in order to address the most critical ecological and social issues and to document clear environmental and economic impact.
Stabilize fishery yields and reduce supply chain volatility
Reduce legal, shareholder, and supply chain risk while protecting brand reputation
Establish equitable, transparent, and efficientcost structures for funding fishery improvements
World Wildlife Fund (WWF), is working with Finance Earth, experts in impact investment and fund management, through a multi-stakeholder initiative with leading industry players to design and pilot this financing concept aimed at delivering global fishery recovery at scale. This collaboration will focus on reversing the trend of fisheries decline and scaling global fisheries improvements for healthier marine ecosystems, thriving fishing communities, and a sustainable blue economy. Once established, this new mechanism will secure much-needed funding for implementing Fishery Improvement Projects (FIPs), attract new capital providers, and establish a return mechanism based on participating companies’ contributing toward a long-term, volume-based fee. Testing this model in the real world will provide a replicable and scalable model that can serve as a blueprint for a potential global Fisheries Improvement Fund in the future.
Offtake Participants: Offtake companies are contributing a fee per metric ton (MT) into the Fund for the Pilot.
Buyer Participants: Buyer participants include longtime supporters of FIPs and established WWF partners. These companies are supporting the launch of the Fisheries Improvement Fund and Pilot.
Philanthropic Foundations: Philanthropy and patient capital providers are providing philanthropic support for the launch of the Fishery Improvement Fund.