Adaptation - Economic Mechanisms

Last time we looked at how ecosystems can be configured or even engineered so as to limit the vulnerability posed by climate change effects to fisheries and coastal communities. This is a typical adaptation response - the approach looks at how to bolster resilience in the face of climate change. Today we will examine another adaptation strategy.

One branch of mitigating fisheries decline is through implementing economic mechanisms to make sustainable business a more financially viable course of action for those who exploit fish stocks. An IFAD report (2014) suggests that promoting certification schemes can act to limit exploitation of stocks. The idea behind this is that sustainably managed fisheries are rewarded for their adaptation efforts by receiving certification which they can stamp on their products. If certification is sufficiently promoted, it can become a gold-standard for goods and products in a particular sector. In order to entice buyers, producers are then incentivised to take relevant sustainability and adaptation measures. No doubt, you're familiar with the Forest Stewardship Council (FSC) logo present on all certified goods, and marine fisheries have their own certification in the form of the Marine Stewardship Council (MSC) certification. Formed by a partnership between the WWF and Unilever in 1996, the MSC gained became an independent organisation when it ceased to receive funding from the aforementioned and sought investment from other sources from June 1998 onwards. As Gulbrandsen (2009) points out, the certification scheme has been a success in that it has encouraged co-management of fisheries by scientists, governments and fishers. However, many fishers who share their resource with others are unable to gain certification due to the actions of others, beyond their control. As such, a fisher could comply fully with MSC regulations and not receive certification due to unsustainable practice by others. Precisely because of this, by 2009 certification had been awarded to only three developing countries, where fishing takes the form outlined above.

Additionally, insurance services are an option to encourage adaptation measures. Quite simply, insurance products designed for fishers and fish farmers greatly improve their resilience by providing a safety net and financial stability in times of disaster, such as extreme weather events likely to result from climate change. Furthermore, clauses can be included in the insurance contract which ensures the adoption of best management practices, or BMPs (IFAD 2014). Index-based insurance policies have been offered to coastal communities in Peru, providing fishers some level of stability in the face of unpredictable climate features such as El Niño (FAO 2014).