Supervisors: Dr David Agnew Imperial College, MSC Dr E.J Milner-Gulland Imperial College Dawn Martin - SeaWeb

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1 Supervisors: Dr David Agnew Imperial College, MSC Dr E.J Milner-Gulland Imperial College Dawn Martin - SeaWeb Katherine Short Imperial College Masters by Research ICCS, Silwood September 2012

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3 Agreement on: Estimated wealth generation from rebuilt marine fisheries (World Bank 2012).

4 Major Tool: Marine Stewardship Council Gutierrez, N.L, et al. (2012) Eco-Label Conveys Reliable Information on Fish Stock Health to Seafood Consumers, PLoS ONE, 7 (8) e [Online] doi: /journal.pone

5 194 Commitments to MSC

6 Fisheries Improvement Projects WWF and Sustainable Fisheries Partnership run FIPs. Do good work but lack systematic ecological and financial accountability. 7.4% global landings in FIPs & therefore don t operate at scale. + MSC (6% certified, 4-5% seeking MSC = 11%). = ~ 18.4% of global landings improving Can Payment for Ecosystem Services help?

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8 Aim: To explore how greater seafood sector investment can be realised to strengthen marine fishery improvement and rebuilding. Hypothesis: that more, and more effective, supply chain investment can be secured to improve fisheries if: i) there is greater financial accountability, ii) greater conditionality on ecosystem performance, and; iii) that adapting PES to fisheries could enable this. Methods: literature review, Key Informant Interviews, conference participation.

9 Objectives 1. To develop a conceptual model for seafood sector marine payment for ecosystem services to improve fisheries. 2. To test it in fisheries to identify the useful elements and challenges in marine fisheries. 3. To explore the potential for PES to strengthen current corporate social responsibility frameworks and their use by the seafood sector. 4. To develop recommendations for implementation.

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11 Ecosystem Services (2005) ES marries ecology and economics (Costanza 2012). PES has become an umbrella term for market based, incentive approaches to manage ecosystems to produce ES (Wunder 2005, Sommerville et al, 2009). Used successfully terrestrially to promote conservation and improve livelihoods (Wunder 2005, Engel et al, 2008, Naidoo et al, 2011, Ecosystem Marketplace 2010, RedLAC 2010).

12 Framework of marine ecosystem services (Beaumont et al, 2007). Category Production Services Regulation Services Cultural services Option use value Overarching support services Good or Service 1 Food Provision 2 Raw Materials 3 Gas and climate regulation 4 Disturbance prevention (flood and storm protection) 5 Bioremediation of waste Cultural heritage and identity Cognitive benefits Leisure and recreation Feel good or warm glow (non-use benefits) 10 Future unknown and speculative benefits Resilience and resistance (life support) Biologically mediated habitat Nutrient cycling

13 Conceptual Model

14 Wunder s Criteria Well-defined ecosystem service Ecosystem service provider Testing MSC for PES? (& I did a real fishery) Х MSC Principles and Criteria for Sustainable Fishing do not explicitly reference ES. Principle 1: high productivity of target population(s) and associated ecological community implies ES. Principle 2: Fishing operations should allow for the maintenance of the structure, productivity, function and diversity of the ecosystem (including habitat and associated dependent and ecologically related species) on which the fishery depends is ES. The fishery being certified. Х Currently not termed ES. Ecosystem service buyer Voluntary Conditionality The supply chain buying the certified fish. Х No systematic transfer of money to ES provider. When a fishery puts itself forward. Х Not when their market insists with penalties for not doing so. MSC s conditions of certification. Х Financial arrangements between parties are not specified by MSC.

15 Corporate Governance & in Seafood? Corporate Social Responsibility, Annual Reporting, Global Reporting Initiative (GRI) and Food Processing Sector Supplement. Ecosystem Service Valuation (World Resources Institute, World Business Council on Sustainable Development, GRI). Seafood sector could use ESV to: i. understand challenges and trade-offs by estimating the relative importance of various ecosystems and their components; ii. justify or evaluate decisions in particular places; iii. resolve benefit distribution and cost-sharing for management; and, iv. create innovative institutional and market instruments that promote sustainable ecosystem management (Chee 2004, Pagiola et al, 2005, Spurgeon 2012). Sanford NZ seafood company = MSC, GRI Report X = Slave labour, controversial orange roughy fishing and bilge dumping.

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18 Recommendations (& Limitations) Analyse terrestrial and marine PES experience (TEEB Oceans and the MSC 2013 Standard Review) from seafood supply chain and fisheries perspectives and communicate learnings. Translate valuation, economic, fisheries and ecological modelling tools for seafood business. i.e. add to fisheries rebuilding models & test ESV to determine private sector investment share in rebuilding fisheries. Public sector seafood companies (at least) to build ES models and trial ESV for their supply chains themselves. Develop standardised ESV method for the seafood sector. Assess corporate governance of publically listed seafood companies committed to MSC. Develop seafood sector fisheries improvement investment. Explore financing entities and/or trust funds, such as project finance for permanence and via World Bank Global Partnership for the Oceans.

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20 Ecological basis of ecosystem services and the anthropogenic influences known (MA 2005). Overfishing is a pressing driver. Recovery possible. FIPs and MSC are useful but not at scale to rebuild fisheries or restore ecosystem health writ large. Bring together certification, demand for MSC with ESV to increase investment. Analysing seafood sector biodiversity dependencies and ecosystem services can enable strategic forecasting of investment in, and leveraged funding for, marine fishery rebuilding and ecosystem restoration, and; that, and best practice corporate governance are essential for seafood businesses to maintain their social licence to operate.

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