OECD Green Growth Studies O E C Green Growth in Fisheries and Aquaculture D G r e e n OECD Green Growth Studies Contents G r Chapter 1. Green growth in the blue economy: Integrating fisheries, aquaculture and the environment o w Chapter 2. Green growth in fisheries th Green Growth in Fisheries S Chapter 3. Green growth in aquaculture t u d ie and Aquaculture s G r e e n G r o w t h in F is h e r ie s a n d A q u a c u Consult this publication on line at http://dx.doi.org/10.1787/9789264232143-en. ltu r e This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information. iSbn 978-92-64-23213-6 51 2015 03 1 P OECD Green Growth Studies Green Growth in Fisheries and Aquaculture ThisworkispublishedundertheresponsibilityoftheSecretary-GeneraloftheOECD.The opinionsexpressedandargumentsemployedhereindonotnecessarilyreflecttheofficial viewsofOECDmembercountries. This document and any map included herein are without prejudice to the status of or sovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundaries andtothenameofanyterritory,cityorarea. Pleasecitethispublicationas: OECD(2015),GreenGrowthinFisheriesandAquaculture,OECDGreenGrowthStudies,OECD Publishing,Paris. http://dx.doi.org/10.1787/9789264232143-en ISBN978-92-64-23213-6(print) ISBN978-92-64-23214-3(PDF) Series:OECDGreenGrowthStudies ISSN2222-9515(print) ISSN2222-9523(online) Photocredits:CoverdesignbyAdvitamfortheOECD. CorrigendatoOECDpublicationsmaybefoundonlineat:www.oecd.org/about/publishing/corrigenda.htm. ©OECD2015 Youcancopy,downloadorprintOECDcontentforyourownuse,andyoucanincludeexcerptsfromOECDpublications,databasesand multimediaproductsinyourowndocuments,presentations,blogs,websitesandteachingmaterials,providedthatsuitable acknowledgmentofthesourceandcopyrightownerisgiven.Allrequestsforpublicorcommercialuseandtranslationrightsshouldbe submittedtorights@oecd.org.Requestsforpermissiontophotocopyportionsofthismaterialforpublicorcommercialuseshallbe addresseddirectlytotheCopyrightClearanceCenter(CCC)[email protected]çaisd’exploitationdudroitdecopie (CFC)[email protected]. 3 FOREWORD – Foreword Fisheries and aquaculture depend directly on the natural environment for their productive capacity. The challenges for fisheries and aquaculture policy makers are to deliver on economic and social goals while respecting the natural biological limits of the resource. How to succeed in this has been a central subject of work by the OECD’s Committee for Fisheries. The OECD has been working to help make reforms to boost sustainable growth. At its 50th Anniversary Ministerial Council Meeting in May 2011, the OECD launched a Green Growth Strategy (GGS) to assist policy makers and stakeholders address the major environmental challenges of today’s world, while expanding economic opportunities. The OECD GGS provides a set of principles for policy reform and a roadmap to follow that can help to make reform possible, successful and durable. This report combines the sector-specific experience of the COFI with the structure of the OECD GGS in order to provide practical advice to policy makers. The fisheries and aquaculture sectors face many challenges. Many fisheries are overfished, over- capitalised and suffer from low returns and limited prospects. Aquaculture has grown tremendously, but future growth is threatened by the environmental impacts of production, its dependence on wild fish as feedstock, and competition for space where it operates. To solve these problems, the sectors will have to embrace reform that will put them on the path to greener growth and long-term sustainability. Fish represents around 20% of the animal protein consumed worldwide and plays an important role in global food security and nutrition. It also disproportionately impacts rural and coastal areas where economic opportunities are limited, especially in less-developed countries. Securing a future with fish and fishing is a necessary part of feeding a growing population and providing inclusive economic opportunities for those who need it most. The needed changes are possible, and in many places they are happening. The benefits of using the power of markets and trade to put fishing on a sounder economic footing are clear, and the evidence of biological and economic recovery of fish stocks that are managed as part of a sound governance framework is beyond refute. As the number of success stories increases, fisheries around the world are learning from them and adopting new approaches. The potential of fisheries and aquaculture is impressive. Better management of global fisheries could lead to in excess of USD 50 billion per year in extra profits for fishers, and 13% more fish for consumers. Aquaculture can grow by more than a third over the next ten years if barriers to growth are removed. This report will help to accelerate the process of change by highlighting what works and using the strength of the OECD’s evidence-based analysis to produce useful advice. There is an urgent need to create an enabling policy environment and governance framework for fisheries and aquaculture. But by acting together we can create the momentum for fundamental change. GREEN GROWTH IN FISHERIES AND AQUACULTURE © OECD 2015 4 – ACKNOWLEDGEMENTS Acknowledgements This report has benefitted from the contributions of many authors, as well as the guidance and suggestions of many delegates to the OECD Fisheries Committee. In particular, Kieran Kelleher’s work on waste in the fish sector, Claude Menard’s work on governance, and the useful insights provided by Josh Abbot are greatly appreciated. Carl-Christian Schmidt was the primary author of Chapter 1, Roger Martini was the author of Chapter 2 and Dong-Sik Woo wrote Chapter 3. Carl-Christian Schmidt supervised the project and provided editorial advice. Roger Martini provided overall editing and was responsible for combining the separate works into a single report. Claire Delpeuch and Lae-Hyung Hong provided comments on earlier versions. Michèle Patterson provided editorial and moral support, and colleagues in the OECD Public Affairs and Communications directorate gave a good deal of advice and assistance in producing the final report. Stefanie Milowski offered invaluable administrative support. GREEN GROWTH IN FISHERIES AND AQUACULTURE © OECD 2015 5 ACRONYMS – Acronyms AIMAP Aquaculture Innovation and Market Access Programme (Canada) CBFM Community-Based Fisheries Management CCTV Closed-Circuit Television CFP Common Fisheries Policy of the European Union COFI Committee for Fisheries of the OECD CPUE Catch per Unit Effort CQM Catch Quota Management DFO Fisheries and Oceans Canada (Federal Government) EEZ Exclusive Economic Zone (typically seas within 200 nautical miles of coast) EPA Environmental Protection Agency (United States) FAO Food and Agriculture Organization of the United Nations FCR Feed Conversion Ratio FTC Fuel Tax Concessions GFT Government Financial Transfer (OECD Database) GGS OECD Green Growth Strategy GHG Greenhouse Gasses HCR Harvest Control Rule ICES International Council for the Exploration of the Sea IFFO International Fishmeal and Fish Oil Organisation IOM Integrated Ocean Management ITQ Individual Transferrable Quota IUU Illegal, Unreported, and Unregulated Fishing MCM Meeting of the OECD Council at the Ministerial Level MCS Monitoring, Control and Surveillance MEY Maximum Economic Yield; the harvest rate that maximises fishing profits over time MSA Magnuson-Stevens Act; main federal law concerning fishing in the United States MSY Maximum Sustainable Yield; the harvest rate that maximises the quantity of fish over time NGO Non-Governmental Organisation NMFS National Marine Fisheries Service. An agency of NOAA with responsibility for fisheries (United States) NOAA National Oceanographic and Atmospheric Administration (United States) NRDC Natural Resources Defence Council. An NGO. RAC Regional Advisory Council (European Union) RAS Recirculating Aquaculture System REM Remote Electronic Monitoring RFMC Regional Fisheries Management Council (United States) GREEN GROWTH IN FISHERIES AND AQUACULTURE © OECD 2015 6 – ACRONYMS RFMO Regional Fisheries Management Organisation. TAC Total Allowable Catch TURF Territorial use rights in fisheries UNCLOS United Nations Convention on the Law of the Sea UNEP United Nations Environmental Programme UNGA General Assembly of the United Nations GREEN GROWTH IN FISHERIES AND AQUACULTURE © OECD 2015 7 TABLE OF CONTENTS – Table of contents Acronyms ...................................................................................................................................................... 5 Executive summary ..................................................................................................................................... 11 Chapter 1. Green growth in the blue economy: Integrating fisheries, aquaculture and the environment .. 13 Overview of the fisheries and aquaculture sectors .................................................................................. 14 The OECD green growth strategy ........................................................................................................... 18 References ............................................................................................................................................... 34 Chapter 2. Green growth in fisheries .......................................................................................................... 37 Build a green growth model .................................................................................................................... 38 Promote the transition ............................................................................................................................. 46 Enable change ......................................................................................................................................... 61 Measure progress towards objectives ...................................................................................................... 69 Deliver on green growth .......................................................................................................................... 70 References ............................................................................................................................................... 74 Chapter 3. Green growth in aquaculture ..................................................................................................... 79 Aquaculture: A history of rapid growth, with concerns about sustainability .......................................... 80 Build a green growth model in aquaculture............................................................................................. 83 Enable change ....................................................................................................................................... 100 Deliver on green growth ........................................................................................................................ 105 Key findings .......................................................................................................................................... 108 References ............................................................................................................................................. 110 Tables Table 1.1. Green Growth Policy Toolkit: Some possible examples in fisheries .................................. 20 Table 1.2. Typology of fishery service delivery and payment models ................................................ 25 Table 1.3. Some potential green growth indicators in fisheries ........................................................... 31 Table 2.1. Potential gains from reducing waste in Fisheries ................................................................ 44 Table 2.2. Elements of good governance ............................................................................................. 52 Table 3.1. Major species cultured in OECD countries in 2011 ............................................................ 81 Table 3.2. Aquaculture volume and value, 1970-2010 ........................................................................ 82 Table 3.3. Green Growth challenges and aquaculture ......................................................................... 84 Table 3.4. Policy tools to address externalities .................................................................................... 87 Table 3.5. Comparison of sustainability indicators for animal protein production system .................. 90 Table 3.6. Calculation of pelagic forage fish equivalent per unit of cultured species groups .............. 97 Table 3.7. Impact of production of from four aquaculture systems ..................................................... 99 Table 3.8. Input use for salmon farming and salmon feed milling in Norway, the United Kingdom, Canada and Chile, 2007 .................................................................................................... 100 GREEN GROWTH IN FISHERIES AND AQUACULTURE © OECD 2015 8 – TABLE OF CONTENTS Figures Figure 1.1. Exploitation status of fisheries ............................................................................................ 14 Figure 1.2. Fish from capture or aquaculture, 1986-2022 ..................................................................... 15 Figure 1.3. Moving from single species management to a .................................................................... 18 Figure 1.4. The OECD green growth strategy ....................................................................................... 19 Figure 1.5. A concept of sustainability indicators in Norway ............................................................... 33 Figure 2.1. Risks of business as usual in fisheries ................................................................................ 41 Figure 2.2. Historical progression of fisheries management ................................................................. 42 Figure 2.3. Number of fishers and fishing vessels, selected OECD countries 2001-2011 .................... 43 Figure 2.4. International Fisheries Governance Structure ..................................................................... 45 Figure 2.5. Green growth diagnostic ..................................................................................................... 47 Figure 2.6. An example of a delegated system ...................................................................................... 50 Figure 2.7. MSY vs. MEY .................................................................................................................... 60 Figure 2.8. Three possible recovery trajectories ................................................................................... 65 Figure 3.1. . Aquaculture production by type .......................................................................................... 82 Figure 3.2. Total aquaculture production: Volume and value ............................................................... 83 Figure 3.3. World fish meal and fish oil production from 1976 to 2006 ............................................... 97 Figure 3.4. Fishmeal use: Past projections and current trends .............................................................. 98 Figure 3.5. Estimated global use of fish meal and oil by the salmon farming industry projected to 2020................................................................................................................. 98 Figure 3.6. Use of antibiotics in the Norwegian aquaculture industry ................................................ 103 Figure 3.7. Danish aquaculture production between 1980 and 2010 .................................................. 106 Figure 3.8. Atlantic salmon production among major countries ......................................................... 106 Boxes Box 1.1. Sustaining growth in the marine and maritime sectors ....................................................... 18 Box 1.2. Green growth and sustainable development ....................................................................... 21 Box 1.3. Market-based instruments in Denmark ............................................................................... 24 Box 1.4. Cost recovery in fisheries .................................................................................................... 24 Box 1.5. Recreational vs. commercial fishing in the United States ................................................... 26 Box 1.6. Innovation for Green Growth .............................................................................................. 26 Box 1.7. Danish experiments with monitoring and remote sensing .................................................. 27 Box 1.8. The use of fuel flow meters in the United Kingdom ........................................................... 28 Box 1.9. Canadian Aquaculture Innovation and Market Access Programme (2008-2013)............... 29 Box 1.10. Headline indicators ............................................................................................................. 30 Box 1.11. Key principles in selecting indicators to monitor progress in green growth ....................... 30 Box 2.1. The Aichi Strategic Goal B Target 6 .................................................................................. 38 Box 2.2. What is IUU fishing? .......................................................................................................... 40 Box 2.3. Addressing overcapacity in the European Union ................................................................ 40 Box 2.4. Discards waste resources and complicate management ...................................................... 41 Box 2.5. A brief history of fisheries management ............................................................................. 48 Box 2.6. Community-Based Fisheries Management in Korea .......................................................... 51 Box 2.7. Advisory Councils in the European Union ......................................................................... 51 Box 2.8. Rebuilding under the US Magnuson Stevens Act ............................................................... 53 Box 2.9. US regulations set a basis for reduction of food waste and hunger .................................... 57 Box 2.10. The equimarginal principle and its shortcomings ............................................................... 59 Box 2.11. Preserving small communities in the United Dingdom ...................................................... 62 Box 2.12. Principles and guidelines for decommissioning schemes ................................................... 63 Box 2.13. Impact of quota reduction in the US Northeast ................................................................... 66 Box 2.14. Scallops in the Bay of Saint-Brieuc .................................................................................... 67 GREEN GROWTH IN FISHERIES AND AQUACULTURE © OECD 2015