The Fisheries Improvement Fund

Summary

The Fisheries Improvement Fund (FIF), established in 2023 is a multi-stakeholder supply chain financing model to fund fishery improvements across the world. Designed together with WWF and managed by Finance Earth, the FIF brings together actors across the seafood supply chain to fund the full costs of a Fishery Improvement Project or wider fishery improvements (e.g. through gear improvements or tech adoption). The costs are covered by quarterly volume-based fees paid by supply chain actors such as processors and retailers set at a level to cover the full cost of the improvements. By establishing contracts with supply chain actors, repayable finance can be mobilised to manage the cashflow over the course of implementation and the volume-based fees are then used to repay the investment with interest. The model has initially been applied to a FIP in Chile that launched in 2024. The Fund now seeks to scale up and mobilise USD 25 million into fishery improvements by 2030.

Background

Global fisheries are vital for food security and the livelihoods that depend on them, with an estimated 600 million livelihoods at least partially dependent on fisheries and/or aquaculture [1]. Demand for seafood is rising and is the world’s most traded food commodity, accounting for more than the total value of beef, pork, and poultry put together [2]. According to the Food & Agriculture Organization (FAO), global capture and production has increased by 123% between 1990 and 2022 [3].

However, the industry is at risk, with overfishing and unsustainable practices representing a fundamental and global threat. Many global fish stocks are affected by illegal, unregulated, and unreported (IUU) fishing [4]. Over the last 50 years, there has been a 70% decline in the marine population [5], with an estimated 38% of global fish stocks overfished. The increasing demand for seafood is placing significant pressures on fisheries and wider marine ecosystems, putting economies and local fishing livelihoods at risk.

The Need for Intervention – Fishery Improvement Projects

Market-based interventions are needed to address these challenges and transition global fisheries to ensure long-term sustainability and revitalised ocean health.

Fishery Improvement Projects (FIP) present a solution. FIPs are multi-stakeholder initiatives that are designed to improve the sustainability of fisheries by improving fishing practices to ensure long-term stability and improve the management of fisheries. Improvements can include

• conducting assessments to address overfishing of certain species in heavily fished areas
• improving monitoring of fish stocks
• strengthening enforcement within the boundaries of the fisheries

FIPs bring together stakeholders across the entire seafood supply chain including fishers, processers, retailers, researchers, government and NGOs. They vary in complexity and are dependent on geography but the aim of a FIP is to develop and deliver a step-by step multi-year coordinated action plan to transition fisheries until it is eligible to meet Marine Stewardship Council (MSC) or an alternative sustainable certification standard.

While achieving certification serves as proof that a fishery has achieved, and is committed to, long-term sustainability, it is not necessary for a fishery to become certified. Certification can be costly and unrealistic for some fisheries. A fishery can make improvements that are in line with these high standards without necessarily undergoing the cost of certification.

Today, there are more than 150 FIPs worldwide, covering over 11% of global commercial wild catch [1].  While FIPs can be an effective model, they often face funding and political challenges. Traditionally, FIPs rely on tranche-based grants from sustainability budgets from philanthropic foundations, governments and industry-wide organisations. However, these grants often fall short of covering the full costs of improvements needed.

As these are multi-year projects and grants are given in stages, FIPs often struggle to secure enough capital to see the project the whole way through to completion. This impacts the pace and scale of improvements on the water and in fishing communities.

New Solution – Fisheries Improvement Fund

To overcome these financing challenges, Finance Earth and WWF developed the Fisheries Improvement Fund – a multistakeholder model to finance FIPs and support the transition to sustainable fisheries. The concept was originally developed by WWF, while Finance Earth developed the financing mechanism and now serves as the independent fund manager.  The aim of the Fund is to accelerate and scale fisheries improvements globally by embedding the cost of sustainability into supply chains and mobilising private sector investment beyond grants.

Design of the Fund

Initial capital is provided to the FIPs in the form of private debt. FIPs can be implemented by a range of actors, from multinational NGOs such as WWF to local NGOs and industry associations. Supply chain actors such as seafood processors then pay fees to the Fund based on the volume of product they procure, enabling the repayment of the loan and the generation of investor returns.

The fee varies for each participating company and for each FIP,  calculated based on various factors including product type, the total cost of the FIP and the amount of additional funding already committed or to be committed to the FIP from other sources. The fee is typically less than 2% of product cost and can be as low as 0.1%. The revenue generated from the fees is used to repay the initial investment from funders.

The Fund identifies the largest off-takers in each fishery and engages with these companies to assess their willingness to pay and the level of the volume-based fee needed to cover all FIP costs. Once sufficient commitments are confirmed to cover the full costs of the proposed improvements, repayable capital is sought to fund upfront delivery.

For other supply chain actors, such as companies further downstream (e.g. retailers, importers), who would like to contribute but for whom the volume fee is not appropriate, other mechanisms may be considered,  including annual financial contributions  or in-kind support for the delivery of FIP-related activities.

The FIF aims to direct USD 25 million towards fishery improvement by 2030, while the broader fund seeks to mobilise an additional USD 100 million.

In addition to financial support, the Fund brings together the fishing sector, governments, NGOs and scientists to contribute to the overall objective of the FIP and ensure appropriate management and governance frameworks are in place for the fishery. This may include collaborating on efforts to reduce bycatch or address illegal and unreported and unregulated fishing; essential steps to drive meaningful change within fisheries.

See below the structure of the FIF:

Source: Finance Earth

Launching the First Pilot Project

In March 2024, the Fund launched its first project in Chile, in one of the most important fisheries in the world. The FIP was designed to deliver multiple activities to support sustainable stock levels of small pelagic fish such as anchovies and sardine. Chile, along with Peru, is located next to the Humboldt Current, one of the most diverse ecosystems in the world. The current brings an abundance of nutrients to the surrounding area and is a vital part of the food chain, supporting some of the largest fisheries in the world including the Chilean and Peru anchoveta fisheries.

In addition to the ecological importance of this ecosystem, thousands of livelihoods depend on these fisheries. Chile is the second largest producer of farmed salmon in the world, after Norway, and the fishery targeted by this FIP is a vital source of ingredients for feed for this sector. The project will run for five years until 2029.

For the pilot, the Walton Family Foundation provided the initial investment, in the form of a private loan, to the Fund, while Cargill and Skretting are providing the volume-based fees. WWF Chile is the FIP implementer and is responsible for implementing, coordinating and recording progress of activities over the project’s life cycle. Additional supply chain actors contributing to the Fund include Costco, Sodexo, Giant Eagle and Mars. Mars has committed USD 1 million over five years which will be used both to support the Chile FIPs as well as to scope for and develop new FIPs in other geographies. Responding to areas of industry interest, the FIF is exploring FIP opportunities in a range of countries, including China, India, Mexico and Peru.

Measuring Progress and Impact

FIPs are designed to improve fishing practices on the water, which can have nature co-benefits such as improved biodiversity and habitat restoration. Progress on whether a FIP is meeting its objectives and environmental targets is tracked by FisheryProgress, a platform that tracks and reports the progress of FIPs [7]. FIP’s progress are typically measured against the MSC Fisheries Standard. The standard consists of three core principles and a set of 28 performance indicators. The three core principles include:

1. Healthy fish stocks
2. Minimizing environmental impact
3. Effective fisheries management

FIPs that are listed on FisheryProgress are required to report their progress against their workplan on a six month and annual basis [8]. The FIP implementer is responsible for uploading evidence of progress through a self-assessment. FisheryProgress then reviews the relevant information and gives each FIP an overall rating from A – E based on improvements. This is shared publicly on the website for transparency purposes.

In addition to self-reporting, comprehensive FIPs such as the Pilot in Chile, must undergo an independent review every three years against the MSC Standard. Evaluation is conducted by a registered MSC technical consultant or an accredited assessment body.

Once a FIP is complete, verification of outcomes is also conducted by a third party at the end of the project. Impact is measured in line with the accredited certification standard.  A FIP can be considered complete if it achieves its objectives even if it chooses not to enter certification.

Demand – Building a Business Case  

The impacts on supply chains of overfishing and biodiversity loss pose major financial and material risks to companies, including product shortages and price volatility [9]. Mitigating these risks through direct investment in their supply chains is the main driver for companies to support the Fund.

The Fund allows participating companies to choose which FIPs they want to finance or develop their own FIPs for fisheries within their supply chain.

By improving the fisheries that companies are dependent on, companies are ensuring long-term resilience in seafood sourcing. There is a clear business case to build resilience in supply chains and greater recognition that the cost of these improvements is a part of doing business.

Challenges with the Fund

• In some cases supply chain actors have been contributing to FIPs in the past but at a level insufficient to cover the full costs of the FIP. In this case it is challenging to secure commitments for higher fees.
• While financing is a key factor, it is not always the primary barrier to FIP implementation. Broader political issues often pose significant challenges which the FIF cannot directly address.
• Certification or a FIP may not be appropriate in all geographies/markets so it is necessary to explore alternative approaches to fisheries improvement.

Scaling and Replicating

• The model can be applied across a wide range of fisheries globally. Finance Earth is currently exploring how the model could be adapted to support gear/technology changes that drive fisheries improvement, further widening the scope of the Fund.
• The model could be replicated to other commodities, such as textiles, soy or coffee with defined sustainability outcomes or established certification, monitoring and verification methodologies.
• The Fund can also be integrated alongside financing for supply chain decarbonisation and improved processing. This is currently being explored in a range of geographies including the Maldives and India.

Lessons Learnt

• Supply chain resilience and a commitment from supply chain actors to address it are key components of this model. The model enables multiple supply chain actors to share costs of fisheries improvements, enhancing overall supply chain resilience.
• The volume-based fee enables companies to build a business case for sustainability investment, embedding the cost of improvements into their product pricing while mitigating risks.
• The contract terms setting out quarterly payments from supply chain actors over the term of the investment provide adequate certainty for repayable finance providers that the investment will be repaid.
• This model facilitates collaboration across the supply chain, demonstrating a holistic, multistakeholder approach to transforming fisheries. By engaging diverse stakeholders, it secures broad buy-in for sustainability improvements and long-term supply chain resilience.

Updated as of April 2025

Sources:

1. World Bank (2024) Blue Economy
2. Rabobank Research, Sharma, N., & Nikolik, G. (2022). Seafood Trade Keeps Growing From Strength to Strength
3. FAO (2024) The State of World Fisheries and Aquaculture 2024
4. Ibid
5. WWF (2024) What are fishery improvement projects and how do they work?
6. Finance Earth (2024) Fisheries Improvement Fund
7. FisheryProgress (2025) About FisheryProgress.org
8. FisheryProgress (2025) Reporting progress on a FIP
9. FAIRR (2024) Seafood Traceability Engagement Phase 1 Progress Report

Interview with Elizabeth Beall, Managing Director, Finance Earth