Mark Spalding-150x150Editor’s note: Ecotrust does not currently engage in work related to aquaculture, but we recognize that there is valuable dialogue to be held around this topic.  As always, we welcome discussion in the comment section below.

By Mark J. Spalding

Earlier this year, headlines trumpeted the fact that 2013 is the year that more than half the world’s global seafood consumption needs will be met by aquaculture.  This is no surprise—the United Nations Food and Agriculture Organization estimates that aquaculture needs to expand by about 10% every year in order to fill demand for fish and other aquatic species—especially since 1 in 7 people rely on them as their primary source of protein.  We reached “peak fish” in wild catch from the ocean in the late 1980’s, and ever since, global food security relied on the expansion of aquaculture.

Food insecurity causes political and social instability, and even environmental instability in the sense that the pursuit of food at any cost promotes short-term thinking and reduces community commitment to a shared vision of a more stable, sustainable future.  Continued population growth places additional stress on wild resources.

The author at Guolian Zhanjiang Group’s shrimp aquaculture facility in China. Courtesy of The Ocean Foundation.

As the human population grows, the stress on the wild population of animals in our ocean increases and the system cannot keep up.  The oceans have suffered from decades of industrial overfishing, loss of habitat to development, destructive fishing gear such as bottom trawls, and changes in ocean chemistry and temperature.  The work to rebuild fish stocks and promote more precautionary thinking in managing wild fish stocks proceeds slowly.  As the UNFAO and the World Fish Centre each predict, it is aquaculture that can and should be expanded to meet the food security needs of a growing population.

Aquaculture has been practiced for thousands of years.  In Asia, fish were often raised in rice paddies and harvested when the rice crops were harvested and the paddies drained.  Other systems co-produced fish and vegetables—the waste from one nourishing the other.  Emerging technology allows us to produce diverse species on land in recirculating systems that can allow for local food security and small scale economic development far from the sea.  To be successful as a support for global food security, the deployment of aquaculture methods, the species grown, and the intended customers must both be sensitive to local resource protection and responsive to local demand.  Different contexts demand different solutions.

For example, in regions where refrigeration is scarce, fish must be grown to a smaller size so that they can be consumed without the need for storage, and at a lower cost.  Such fish operations can also supply institutional needs such as hospitals, schools, prisons, and other entities.

In regions where local wild fisheries are a key source of both economic and food security, outside fishers must be discouraged from adding to the pressure on wild fisheries.   Local communities can be assisted in the design of community-owned fishery management schemes.  To maintain commercial fisheries to supply demand, we need to reduce wild fishing effort, allow fish biomass to recover and maintain total catch at a level that is sustainable.

Two major aquaculture industries are less about supporting food security than filling consumer demand in North America and elsewhere—farmed salmon and farmed shrimp.  Most of the farms that produce these animals are in nearshore open waters or in (former) mangrove forests.  It is Atlantic salmon that can be farmed—and often are—far from their home waters.  Atlantic salmon escapees are now competing with Pacific salmon in the upper Northwest and British Columbia.  In Chile, outbreaks of disease have moved the salmon industry to different places along the coast as areas have become too polluted to support the salmon pen.  Feeding them in their cages requires conversion of millions of tons of small prey fish into fish meal—anchovies from Peru, pogies from the Gulf of Mexico, and menhaden from the Atlantic Coast, among them—in addition to antibiotics,  other drugs, and a special dye to make them pink, as though they had had the same diverse diet as their wild cousins.

We have plenty of terrestrial examples from bison to passenger pigeons that showed we were unable to take “wild-caught” animals to a global commercial scale for consumption without driving them to extinction. For most wild prey species, we stopped hunting them, or domesticated them before they disappeared.

Eating carnivorous fish such as tuna or salmon is like feeding cows to lions so we can eat the lions. First, both the tuna and the salmon have to be fed a large volume of fish products to become a marketable size and flavor for the wealthy country markets where they are sold.  Second, their feed is derived from other wild fish populations such as anchovies, herring, pollock, and menhaden that play a significant role IN the water as prey for larger animals.  Third, the prey fish are a significant source of protein for people in all poor, coastal regions.

Thus, we predict we will move toward eating more herbivorous fish — tilapia, carp, and catfish, among others — via recirculating aquaculture systems because of global population growth and feed conversion ratios.  This prediction is not without debate, and it may be on a long time scale that we see it play out in wealthy nations like the United States, but worldwide it may be unavoidable if we wish to avoid a continued downward trend in biomass in the ocean.

Obviously, we need new technologies and new ideas. The good news is they are emerging and being implemented; now, we need to implement them even faster.

New Trends on the Horizon

New Technologies: Recirculating aquaculture systems combined with hydroponic agriculture forms the new space of aquaponics, which  enables the growing of both plants and fish together in one highly efficient system. Aquaponics can provide controls that allow production with lower contaminant loads, and may be an organic alternative. These are especially beneficial if powered by renewable energy, and are designed to prevent loss of water via evaporation.

Focus on Herbivores: Successful herbivore aquaculture could take pressure off the use of wild animals to feed humans or other animals destined for human consumption. Also, farming is an alternative way to produce marine species for the home and commercial aquarium trade and to reduce pressure on vulnerable reef systems

Better Fishmeal:  When we do farm carnivores, such fish farms increasingly are consuming a significant percentage of the “reduction” wild catch made into fishmeal.  Aquaculture thus plays a role in continuing and increasing demand for wild fish.  However, another trend is in the improvements in feed content modifications to reduce the ratio of protein from meat.

Global Unemployment Problems: Aquaculture can provide viable local jobs requiring a variety of skill sets and education levels; although these jobs are not necessarily alternative livelihoods for local fisher communities who don’t want to work in an industrial setting.

Changes in Market Demand: Sustainable aquaculture can meet and encourage the “locavore” movement, while addressing legitimate concerns that global commercial scale aquaculture is the enemy of sustainability.

Rise of Community-Based, Grassroots, Diverse Constituency:  In the United States for example, many recirculating farms are grassroots oriented; the farms are often run by lower-income and traditionally socially disadvantaged individuals and communities in blighted urban areas and food deserts. These grassroots groups often support high quality standards to prevent new entrants who undercut them on quality and price, which would change the industry from overwhelmingly sustainable to something more like factory farming.

At the end of the day, we know that we now have less than 10 percent of the fish that were in the oceans in the 1950’s, while the world’s population has grown from fewer than 3 billion to more than 7 billion people.  Great management and habitat protection can help rebuild fish stocks globally.  Sensible wild fisheries management strategies can help those coastal communities with few alternatives.  Given the triple threat of population growth, habitat destruction, and changing ocean temperature and chemistry, we have to be ever more cautionary in our approach to taking wild fish out of the sea. Cautious starts to look a lot like deploying these new aquaculture technologies on land, with an eye toward managing energy, water, and transportation demands. That approach will ensure food security, to underpin social and economic security, and to allow the ocean stocks to replenish themselves.

Mark J. Spalding is president of The Ocean Foundation.

 

What are fishermen catching in the Solomon Islands? The government wants to know, to better manage the archipelago’s fisheries. Our Marine Consulting Initiatives (MCI) team recently linked up with the Solomon Islands government and the Coral Triangle Initiative to develop a new mobile app that will allow improve the ability for surveyors in fish markets to record what’s coming over the docks.

Solomons HappyFish

A surveyor with the Ministry of Fisheries interviews a vendor at the Honiara fish market using a new mobile app Happy Fish, counting the number and type of species in the vendors bin or ‘esky’. Photo via USAID CTSP / Tory Read.

The aggregated data will help the government paint a better picture of fishing hauls in the Solomons.  A post on the Coral Triangle Initiative site explains more:

Good fisheries management requires good data.  The administrators at the Ministry of Fisheries and Marine Resources in Solomon Islands felt constrained in their work by the lack of information on the current use of inshore fisheries around the country.  Ben Buga, marketing director and chief fisheries officer at Ministry of Fisheries, summed it up: “For resource management programs and to support the fishing communities, we need accurate data on production, species, origin, how, when and by whom the fish are being caught.”  Leaders from the Ministry of Fisheries explained this need at a CTI Regional Business Forum in 2012, and USAID’s Coral Triangle Support Partnership (CTSP) stepped up to help the Ministry meet the challenge.

With CTSP support, the Ministry of Fisheries tasked Ben with making an information-gathering plan and hiring and training eight people to work as market surveyors. With CTSP support, Dr. Robert Pomeroy from the University of Connecticut Sea Grant Program and Dr. Kevin Rhodes, a professor of marine biology at the University of Hawaii at Hilo, were brought in with the help of CTSP consortium members WWF and CI to develop surveys to close information gaps, supervise and train market surveyors and assist Buga in managing the program.  Training in how to administer surveys was conducted in the main market at Honiara, the capital of Guadalcanal Island.

survey_photo-2

The Happy Fish survey interface.

Similar surveys have been done in many places, and the weakness of all of them has been the use of paper forms to record the interviews.  Paper can be damaged or lost, and the information from the forms must be transcribed manually to computers, creating the potential for mistakes and posing considerable challenges to timely use of data.  To clear this hurdle, CTSP worked with the NGO Ecotrust to develop a mobile application to enable surveyors to capture and input data on site.  The mobile app, called Happy Fish, will allow accurate recording and instantaneous wireless transmission of survey information to a database programmed to analyze the data and generate useful reports for managers, on demand.  This exciting program is setting an example for other Coral Triangle and Pacific countries to use technology to support local economies and food security for inshore fisheries.

 

 

 

Waterhouse_canoeLast week, our partners at the Yukon River Inter-Tribal Watershed Council (YRITWC) were named one of the top 25 innovations in government by Harvard University’s Ash Center for Democratic Governance and Innovation at the John F. Kennedy School of Government.

These government initiatives represent the dedicated efforts of city, state, federal, and tribal governments and address a host of policy issues including crime prevention, economic development, environmental and community revitalization, employment, education, and health care.  “These Top 25 innovations in government offer real, tangible ways to protect our most disadvantaged citizens, educate the next-generation workforce, and utilize data analytics to enhance government performance,” said Stephen Goldsmith, director of the Innovations in Government program at the Ash Center. “Despite diminishing resources, these government programs have developed model innovations that other struggling agencies should be inspired to replicate and adapt to their own communities.”
The  Yukon River Inter-Tribal Watershed Council (YRITWC)  was recognized for its work towards environmental revitalization and its international governance model to protect the Yukon River and ensure its water is drinkable for generations to come.

Jon Waterhouse (S’Klallam, Chippewa, Cree), Executive Director of Yukon River Inter-Tribal Watershed Council (YRITWC), was honored as a 2012 Ecotrust Indigenous Leadership Award finalist for his tireless dedication to the restoration and preservation of the Yukon River Watershed. Jon’s work serves as a model for indigenous peoples around the world, as they attempt to restore, protect and preserve their watersheds, while using traditional knowledge as a foundation for achieving their goals.

This summer, Ecotrust will be working with Jon and the YRITWC to support the Council’s water policy work in the Yukon as well as in the Copper River Basins.

The Innovations in American Government Awards was created by the Ford Foundation in 1985 to shine a light on effective government programs. Since its inception, over 400 government innovations across all jurisdiction levels have been recognized and have collectively received more than $22 million in grants to support dissemination efforts. Such models of good governance also inform research and academic study. The Center also recently announced 13 programs as Bright Ideas, an initiative of the broader Innovations in American Government Awards program.

 

 

Just days after the public launch of a successful New Markets Tax Credit-supported project, Ecotrust has learned that its subsidiary, Ecotrust CDE, was awarded $45 million of additional New Markets Tax Credit allocation. Ecotrust will put the new federal financing toward innovative initiatives that create economic, social and environmental benefit in rural and disadvantaged communities in the Northwest and beyond.

Ecotrust used past allocations of New Markets Tax Credits to support the Bullitt Center, the world’s leading-edge commercial green building, which opened on April 22, 2013. The 50,000-square-foot building, which continues renewal at the edge of Seattle’s Central and Capitol Hill Districts, will generate all of its own energy and use a rainwater filtering system to meet all of its water needs. Construction created 160 jobs and invested $30 million into the region’s economy.

The Bullitt Center under construction last year. Photo by John Stamets.

The Bullitt Center under construction late last year. Photo by John Stamets.

“The Bullitt Center is the latest example of how Ecotrust uses New Markets Tax Credits and other forms of capital to push environmental and social innovation while creating jobs and successful new business models,” says Spencer Beebe, chairman of Ecotrust.

Ecotrust’s latest allocation is part of $3.5 billion in New Markets Tax Credit awards to 85 organizations nationwide by the Treasury Department. This money is to be invested in creating and protecting jobs in disadvantaged and distressed communities.

This is the fourth allocation of New Markets Tax Credits that Ecotrust CDE has received since 2003.

Senator Jeff Merkley (D-Oregon) celebrated the news. “This is great news for Ecotrust and the entire Northwest,” said Merkley. “Ecotrust has been an incredible partner to Oregon’s rural communities, supporting economic development in environmentally sustainable industries ranging from forest products to clean energy. I look forward to seeing this new funding turn into jobs and economic activity across Oregon.”

Washington Governor Jay Inslee said:  “Wood products is a backbone, legacy industry in the Northwest. This support for innovation in green building will help spur new jobs in distressed rural communities with deep roots in the forestry sector. I applaud this opportunity to leverage public and private funding to support cutting-edge projects and ignite sustainable economic growth.”

Past Ecotrust allocations, totaling $122 million, have supported clean energy projects, a new model of timberland management, and forest products innovation, including:

  • Ochoco Lumber Company, which refinanced and stabilized the last remaining mill in John Day, Oregon and included the construction of a new pellet fuel facility.
  • Chobani, Inc, formerly Agro-Farma, Inc, to renovate and upgrade its yogurt manufacturing facility located in an economically distressed county of New York, and to finance the installation of a biogas plant to convert wastes from the yogurt production process into energy.
  • Ecotrust Forest Management<http://www.ecotrustforests.com/>, to support the purchase of 12,500 acres of timberland in Washington and Oregon and the conversion of the land to Forest Stewardship Council-certified  management, for multiple outcomes of timber, jobs, carbon sequestration, clean water and wildlife habitat.

Ecotrust CDE plans to use some of the latest NMTC allocations to support innovative new projects across the Northwest, including Northwest tribal governments’ re-acquisition of traditional lands.

“This allocation will provide critical financing for businesses and organizations in rural communities across the Pacific Northwest,” says Bettina von Hagen, Managing Director of Investments and Community Engagement of Ecotrust CDE. “We have a very exciting pipeline of projects, which includes the conversion of an abandoned retail space into a state-of-the-art manufacturing facility, and the rejuvenation of shuttered facilities, including a paper mill, a sawmill and a biomass plant that will generate hundreds of family-wage jobs in highly distressed communities. We are particularly excited about the opportunity to work with tribes on land repatriation and the launch of related tribal forest processing businesses.”

Through Ecotrust CDE, Ecotrust uses New Markets Tax Credits as one tool in a wider strategy of impact investing to improve social, environmental and economic conditions up and down the West Coast. Over the last twenty years, Ecotrust has turned $30 million in grants and program- and mission-related investments into $800 million in assets at work throughout the region. Learn more about Ecotrust’s impact investing approach and history here.

The New Markets Tax Credit program, established by Congress in December 2000, permits corporate taxpayers to receive a credit against federal income taxes for making equity investments in vehicles known as Community Development Entities, or CDEs. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. For every dollar invested by the federal government, the NMTC Program generates over eight dollars in private investment. President Obama’s FY14 budget included an expansion and permanent extension of the New Markets Tax Credit.

In the latest funding cycle, 282 CDEs applied for allocations, requesting a total of approximately $21.9 billion in allocations.

  • Allocation awards totaled $3.5 billion, or about 16 percent of the total amount requested by applicants.
  • Thirty percent of the total applicant pool – 85 CDEs – were awarded allocations.
  • Allocation awards range in size from $15 million to $80 million. The median allocation amount was $40 million and the average allocation amount was about $41.2 million.

More on this year’s awards and the New Markets Tax Credits program is here

 

Ecotrust Forest Management has been named one of the top 67 companies in the world for overall social and environmental impact by the nonprofit group B Lab. B Lab chose this “Best for the World” list from over 700 Certified B Corporations  worldwide. With the release of the second annual “Best for the World” list, B Lab honors businesses that earned an overall score in the top 10% of all Certified B Corporations on the B Impact Assessment, a comprehensive assessment of a company’s impact on its workers, community, and the environment.

Ecotrust Forest Management manages 13,000 acres of forestland in Oregon and Washington. Photo by Sam Beebe.

Ecotrust Forest Management operates on 13,000 acres of forestland in Oregon and Washington. Photo by Sam Beebe.

The new list was featured by Businessweek and Fast Company today.

Ecotrust Forest Management, an Ecotrust subsidiary,  manages 13,000 acres of Northwest forestland on behalf of investors and forestland owners to enhance forest health and productivity, and to produce a diverse array of forest products and services including timber, biomass, carbon, and improved habitat and water quality.

Bettina

Bettina von Hagen is CEO of Ecotrust Forest Management.

EFM seeks to capture a wide array of funding sources — New Markets Tax Credits, carbon credits, conservation easements, and restoration funding — to supplement private capital resources in the acquisition and management of forestland. The company also strives to create reliable jobs for local residents and opportunities for local communities.

“EFM is honored to be named among the top B Corps in the world. We are committed to demonstrating an alternative approach to managing forests in the region — one that can be financially competitive, while at the same time beneficial to the health and resilience of ecosystems and rural communities,” says Bettina von Hagen, CEO of Ecotrust Forest Management.

“We chose to become a B Corp because we believe that long-term stewardship of forestland is fundamental to our business model and that having strong social and environmental governance is critical to achieving our objectives,” von Hagen continues. “We share these common values with B Lab and appreciate their legitimacy as an independent third party in assessing environmental and social claims. We are also seeking investor and stakeholder communities that share our values, and the B Corp community meets that standard.”

Other highlighted companies include Roshan, Afghanistan’s leading telecommunications provider, One PacificCoast Bank, a pioneer triple-bottom-line community development bank, and Cooperative Home Care Associates, the nation’s largest worker-owned cooperative, providing high-quality home care services to elders and individuals living with disabilities. The “Best for the World” companies come from over 25 different industries and 20 countries. Thirty percent of honorees are based outside the United States, with 13 companies operating in emerging markets.

“A company’s revenue only tells half the story. Today’s most successful businesses must also create a positive social and environmental impact,” said Jay Coen Gilbert, co-founder of B Lab, the nonprofit organization that certifies B Corporations and governs the independent third party standard used to generate the comparable assessment of corporate impact. “These companies are competing to be not only the best in the world, but the best for the world.”

Each honored company is a Certified B Corporation, a new type of company using the power of business to solve social and environmental problems. They have met rigorous standards of social and environmental performance, accountability, and transparency. Today there are over 700 certified B Corporations, across 60 industries and 25 countries, unified by the common goal to redefine success in business.

B Lab will release separate lists recognizing those companies that are  “Best for the Environment,” “Best for the Community,” and “Best for Workers” throughout the coming year.

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