Friday, June 4, 5.43 p.m. GMT
Revolutionizing aquaculture – but salmon won’t take the lead
There is no doubt that aquaculture will be playing a pivotal role in feeding the world to 2050, industry leaders agreed this afternoon.
But future growth won’t be spearheaded by the well-developed and commercialized salmon industry, but by species that are cheaper and faster to produce.
Kristine Gramstad, group communications director at Norwegian salmon giant Marine Harvest, said aquaculture’s revolution will not come from salmon.
High cost and the energy-intensive nature of producing salmon are the biggest hurdles to that.
Jon Hindar, CEO of Mitsubishi-owned salmon farmer Cermaq, picked up the thought during a later discussion.
“The industry I’m working for is never going to resolve poverty and feed the hungry,” he said, after being told by a member of the audience that there is a “disconnect” between the development of the fastest-growing segments of the aquaculture industry, and efforts in reaching the goal of feeding the world.
In response, Hindar suggested that species such as tilapia and pangasius, which can be produced at a much lower cost than salmon, will have to take on this role.
Those segments, he said, will have to use the salmon industry’s expertise and knowledge to ramp up their own production.
This combination, he said, will help feed the world in more than 30 years’ time.
-- Elisabeth Fischer
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Friday, June 5, 3.30 p.m. GMT
Money talks
The money for sustainable fisheries transition projects is out there, according to panelists discussing the move to blue economy.
Mark Tercek, president and chief executive officer of The Nature Conservancy, said industries and potential users of funds simply need to create a plan.
“The problem is not complicated deal structures, what we need are deals that are economically sustainable,” Tercek said.
“We need cashflows. It may sound simple but that means identifying revenues, subtracting revenues.” That basic concept is sometimes lost on foundations and NGOs, he said.
“We will all agree there are lots of opportunities for various interventions, but that stream should have a very high ROI,” Tercek added.
Tercek said that sustainable fisheries projects, for example, can look high risk, and have an unclear return.“If it’s low risk, it will be easy to finance,” he said.
“If it’s high risk it will be expensive and difficult to do. You need better assurance that when the fishery recovers, investors will have revenue.
”The positive impact of the focus on investor return in a sustainability project is that it helps users of capital be “more precise in our work.”
That’s another way of saying that it encourages them to be less wasteful, and more frugal – not necessarily factors that NGOs take into account.
“I’m glad financiers want more rigor – it’s going to make us better at conservation and better at our jobs,” Tercek said.
So can it work? Yes, Tercek said.
He pointed to The Nature Conservancy’s work in California’s Morro Bay, where the group realized both fisheries recovery, and financial return.
-- Drew Cherry
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Friday, June 5, 2.59 p.m. GMT
It’s about people
Justin Mundy, director of The Prince of Wales International Sustainability Unit, cautioned that investing in any fisheries improvement projects simply won’t work without engaging the community – nor should it.
“If you have that long-term investment, you have to ensure a priority that the social issues are put up front,” Mundy said.
“Many communities people would like to work with are extremely vulnerable. You don’t want to upset the social equilibrium of those communities.” While given time fisheries will recover, the big question is what will happen to the communities during that transition span.
“If you have a fishing community which is almost by definition existing on the margin of any economy and they suddenly have to stop fishing to enable stocks to recover or are somehow required to develop other economic activities, where do they go during that period?” Mundy asked.
“You have to find a way to ensure they have an economic source that is sustainable over this gap period.”
-- Drew Cherry
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Friday, June 5, 2.35 p.m. GMT
Sometimes you have to break a few eggs…
While the cultural and community issues should be considered with any investment to transition to sustainable economies, it shouldn’t lead to paralysis, according to John Tobin-de la Puente, managing director and global head of sustainability at Credit Suisse.
“If we worry too much about the community issue, the transition may end up paralyzing innovation,” Tobin-de la Puente said. “That innovation may be critical to the improvement of life of some of these people on the edge of poverty."
“I would argue we should not allow that from preventing us from doing something that is ultimately beneficial."
Magdalena Lamprecht Wallhoff, director of Regal Springs, objected to the notion – saying the sustainable development of any business is completely dependent on the support of the community.
-- Drew Cherry
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Friday, June 5, 2.20 p.m. GMT
Calysta constructing 80,000-tons plant
US biotech company Calysta, one of the first investments for Dutch fund Aqua-Spark, is currently in the process of constructing an 80,000-metric tons capacity production facility in the United States.
The product will be a "perfect replacement for fishmeal," Aqua-Spark's Mike Velings said.
"The product looks a bit like marmite, and has a 99.4 percent similarity to fishmeal."
He described it as a "really viable alternative" to fishmeal and fish oil going forward. Being reliant on anchoveta for fish feed through fishmeal and fish oil is a "really dangerous game," he said.
Calysta is planning another three plants and is aiming to set up a licensing system on top.
-- Elisabeth Fischer
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Friday, June 5, 2.10 p.m. GMT
Aquaculture's call for attention
This morning’s aquaculture panel, moderated by our own Drew Cherry, saw panelists call for an inclusion of aquaculture in the discussion on the ocean’s blue growth.
“I don’t think we’ve talked enough about aquaculture,” Mike Velings, founder and managing partner at investment fund Aqua-Spark, said. “It’s not getting enough attention.”
He cited FAO figures, which suggest global aquaculture output is now at 70 million metric tons, overtaking fisheries, which produces 65 million metric tons.
But when talking about feeding the future in a sustainable way “nobody thinks about aquaculture,” Velings said – at least not if you’re not in the industry itself.
Magdalena Lamprecht Wallhoff, director at tilapia producer Regal Springs, agreed, saying aquaculture has “hardly been part of the conversation” at WOS.
-- Elisabeth Fischer
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Friday, June 5, 10.40 a.m. GMT
It is scary to be a fish…and even scarier to be a vessel
We’ve all gotten used to Google Maps and Google Street View but the world’s fishing and shipping world might have to get used to the scary thought of being constantly watched upon too – in real-time.
Last year, Google Ocean launched the Global Fishing Watch project, and Brian Sullivan, program manager at Google Ocean, introduced a prototype this year – an interactive heat map of the world’s vessels.
The platform analyzes millions of data points from the Automatic Identification System (AIS) network, a broadcast of vessels' locations by orbiting satellites.
“Last year we started this, this year we’re showing you a prototype and next year we’re hoping to go live,” Sullivan said.
He believes the project, which was launched together with Oceana and Skytruth, will become an important tool to showcase traceability and transparency to consumers, certification bodies and governments.
“People want to see traceability, they want transparency. One way to show you’re a leader is to show that you’re traceable,” he said.
Using the map will be is free.
Along the same lines, Windward has been working on a “vessel stories” project for a few years now, its CEO and Co-Founder Ami Daniel said.
Also using AIS data, Windward is trying to create put together a vessel’s DNA to tackle data manipulation such as vessel identity fraud, obscuring traceability through mid-sea fish transshipments and environmental risks through fuelling operations at sea.
“Visibility is the key to a successful blue ocean economy,” Daniel said, adding Windward is trying to bring some order in the vessel data Wild West.
Google and Windward are not working together, but are “complimentary,” Sullivan said.
“We’re just trying to make as much data available as possible but not in the business of catching people,” he said.
Windward’s technology is going deeper and into more detail, and will be actively used to tackle issues such as IUU. Users have to pay for it.
-- Elisabeth Fischer
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Friday, June 5, 9.55 a.m. GMT
Power to the fish
Tidal Lagoon Power is awaiting regulatory approval for a “unique” hydro-project in Swansea bay, which could generate power for 175,000 homes, its CEO Mark Shorrock said.
The catch: The U-shaped, man-made lagoons, which will see 16 hydro-turbines generate electricity, will also incorporate a finfish, oyster and mussel maritime project.
“We think we’re onto creating something good,” Shorrock said, both in terms of reshaping the United Kingdom’s way of generating power and in terms of creating underlying industries.
-- Elisabeth Fischer
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Thursday, June 4, 4.20 p.m. GMT
Pushing recommendations for implementation
Last year, the Global Ocean Commission launched its ‘Decline to recovery” report, delivering eight recommendations for ocean recovery. Today, Jose Maria Figueres, former president Republic of Costa Rica and the co-chair of Global Ocean Commission, gave an update on the progress made.
“Recommendations are great. But recommendation without implementation is a wishful thought,” he told the audience.“This year the commission is focused on implementation, implementation. Our goal is to push these recommendations over the finish line.”
Progress has been made on governance issues, as well as in beginning to deal with IUU, he said.
Much work, however, remains to be done.
“We have two important challenges in humanity: the war against poverty and the war against climate change,” Figueres said. A healthy ocean is pivotal to tackling both of those challenges, he said.
-- Elisabeth Fischer
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Thursday, June 4, 4.09 p.m. GMT
Plastic wars
If plastics pollution continues at current rates, we’ll have 1 metric ton of plastic in the ocean for every 3 metric tons of fish by 2025, Jose Maria Figueres, former president Republic of Costa Rica, and co-chair of Global Ocean Commission, told the WOS audience this afternoon.
“Get ready for the plastic gourmet plate in your restaurants,” he said. Winning the war against plastics begins on land, not at sea, he added.
-- Elisabeth Fischer
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Thursday, June 4, 3.12 p.m. GMT
Driving ocean innovation, together
Torsten Thiele, founder of the Global Ocean Trust, welcomed the events such as the World Ocean Summit, which he described as a rare event where the private sector and the "ocean community" come together to talk about common goals.
When coupled the strengths of both parties together, he believes, there can be a "real switch we can achieve" to create "sustainable innovation" benefiting both.
-- Elisabeth Fischer
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Thursday, June 4, 2.48 p.m GMT
Planning is everything
Four years ago, former European Union Fisheries Commissioner Maria Damanaki said she introduced a term to the bloc: “blue growth.”
“We’re still struggling for a definition of it, though,” she said. “Nevertheless, everybody understands blue growth is there, and there to stay.”
And it isn’t just about the economic benefits of the ocean. It’s about human need.
“Like it or not, we have almost exhausted our resources on land – we have made a lot of mistakes. I can see blue growth is the way to go for sure,” she said.
“The challenge is to make the conservation voice loud and clear in the procedure.”
Damanaki, now global managing director for oceans at The Nature Conservancy, said her organization is advocating for carefully designed blue growth as a key to meet both needs.
“The great opportunity for oceans is human activity when it is designed,” she said.
Mapping, governance and decisions supporting sustainability all need to be taken into account when approaching use of oceans.
“We cannot keep the ocean untouched – this is an illusion,” she said. “I’m not naïve – I don’t want to present a rosy picture, but we have to make some choices.”
-- Drew Cherry
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Thursday, June 4, 2.40 p.m GMT
Give us a little credit
While Mexico’s fisheries are in the middle of significant reform, Mario Aguilar, national fisheries commissioner of the Ministry of Agriculture, Livestock, Rural Development and Food, said lower-income countries need to be more recognized and financially rewarded for their efforts to continue their work.
“If you don’t have a budget, then you are very limited in what you can do,” he said. Many countries don’t have the luxury of strong fisheries and maritime governance agencies, and that can put fisheries issues “at the back of the line.”
“If you don’t have the research, data or biomass information, you can’t implement any fisheries policies that are sound,” he said.
That recognition can come in the form of market access, and that demand should trickle down to artisanal fishermen.
“As simple as it sounds, if you don’t work with fishermen, it’s very limited what you can do,” he said.
Either way, it’s important to recognize ocean usage will happen regardless.
“No matter where you are, its unrealistic to think the ocean will be untouched,” Aguilar said. “The approach we’re taking [at this forum] is the right one. Oceans are a source of development and growth, and should be recognized as such under a sustainable framework.”
-- Drew Cherry
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Thursday, June 4, 2.30 p.m GMT
The right to make money
University of California, Santa Barbara, Professor of Environmental and Resource Economics Christopher Costello offered a slightly more optimistic view of the potential for return in global fisheries; he believes there is indeed a triple bottom line in moving toward sustainable fisheries.
“There are investors standing ready to make significant financial investments to aid that transition,” he said.
Those kind of investments will not be viable and the financial benefits will not be achieved, however, if countries can’t put effective policies in place, he said.
“Ocean health is really a means to an end – its’ not just an end itself,” he said. “We conserve because it’s the best way to make money.”
His research estimated “appropriate reforms” could increase fishers' profits by $75 billion per year.
“That’s a huge percentage increase,” he said.
But the right mechanisms have to be in place to aid the transition. What might those mechanisms be? Most critically, rights-based fisheries management – which has been extremely effective in New Zealand, Canada, Chile and Australia – has shown success.
“Because rights create investable assets, we think that this is the platform for investors to help make this transition to recovery,” Costello said.
“The tools and approaches exist for rebuilding global fisheries.”
-- Drew Cherry
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Thursday, June 4, 12:15 p.m GMT
Leaving billions on the table
Paula Caballero, senior director, global practice for environment and natural resources at the World Bank Group, announced that the group, together with the UN Food and Agriculture Organization (FAO), had updated its landmark "Sunken Billions" report from 2009.
The original report, Caballero said, was "motivated by the observation that state of global marine fisheries was deteriorating very rapidly."
The response, she said, was favorable from governments, the conservation community and industry alike.
"It really sparked a rethink from investing in fishing capacity to looking at fisheries and oceans government far more strategically," she said.
The original report found some additional $50 billion would be added to the global economy with more sustainable fisheries management, and that would come with an additional benefit of double the world's fish biomass, and a 13 percent higher harvest by 2020.
Caballero said there has been "modest" improvements in the global environment, "but it's way too little."
With current changes in fisheries management, it would take an estimated 67 years for current overexploited species to recover.
The challenge, Caballero said, is to focus on how to make the transition to more sustainably managed fisheries viable.
"Particularly in a way that does not leave someone behind," she said. "Unless this transition pathway focuses on small-scale fisheries in low-income countries, we will be leaving communities behind."
--Drew Cherry
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Thursday, June 4, 11.40 a.m. GMT
Is global ocean policy a possibility?
Some of the world’s political maritime leaders called for more global cooperation on oceans regulation and protection this Thursday morning. The European Commission launched a public consultation on international ocean governance.
Karmenu Vella, commissioner for environment, maritime affairs and fisheries at the European Commission, said oceans are global so “we need to have global governance and global implementation ... There are doubts whether the existing governance framework is effective in doing that."
It’s not only important to have a legal framework but to have a coherent legal framework with a global span, he said.
“I think we need to come up with a strategic roadmap, not on our own but collectively,” he told the audience. "Since the oceans are shared amongst all of us we cannot limit ourselves to our own courtyard."
The subject will be on the agenda Friday, Assuncao Cristas, minister of agriculture and sea of Portugal, when ministers from 70 countries will meet in Lisbon to discuss blue growth linked to the world’s oceans.
The two questions the commission is asking its stakeholders are, 1) Is the current ocean governance framework effective? 2) If not, what needs to be done to make it more effective?
“The goal is to see how we should develop this [blue growth] together,” she said. It is a global issue and it has to be discussed on a global platform.
The questions and issues surrounding blue growth “are very broad but I believe there is a strong consensus that there is the need to boost blue growth,” she said.
Kathryn Sullivan, under-secretary for oceans and atmosphere at the US Department and Commerce, and administrator at the National Oceanic and Atmospheric Administration (NOAA), agreed but curbed the excitement, saying it might be a bit naive to believe it’s possible to find one legal framework that can be applied on a global basis.
The dimensions of the blue economy are simply too wide and varied, she said.
“But we do need coherence,” Sullivan added.
Building a globally used database, share information and knowledge globally would be one way to reach coherence, she said.
However, Nkosazana Dlamini Zuma, chairperson at the African Union Commission, got the panel, which also included Norway’s Fisheries Minister Elisabeth Aspaker, on the defensive, suggesting “rich countries are talking to rich countries about ocean management. How will we involve poor countries?”
--Elisabeth Fischer
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Thursday, June 4, 11.30 a.m. GMT
Norway’s first industry
Norway’s fisheries and aquaculture sector has co-existed with the country’s petroleum industry for a while, but “when the oil and gas period comes to an end it should be fisheries and aquaculture that replace the petroleum sector as the main industry in Norway,” Norway’s Fisheries Minister Elisabeth Aspaker said.
--Elisabeth Fischer
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Thursday, June 4, 11.20 a.m. GMT
EU launches public consultation on oceans
The EU initiated a six-month public consultation Thursday – dubbed ocean governance listening – to find out what global opportunities and responsibilities of ocean governance there are.
The initiative was revealed by Karmenu Vella, commissioner for environment, maritime affairs and fisheries at the European Commission, during a panel discussion at the World Ocean Summit.
Its goal is to find answers to crucial questions surrounding the current legal framework, if it’s enough, and if not what can be done to improve it.
--Elisabeth Fischer
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Thursday, June 4, 11.00 a.m GMT
Measuring stick for coastal management
How well are coastlines being managed? Now we can find out.
Leo Abruzzese, global director of public policy at The Economist Intelligence Unit, unveiled the publication's Coastal Governance Index, a new measure for assessing countries' regulatory schemes for balancing environmental protection with economic development.
"There really are no global standards for looking at governance on coastlines," Abruzzese said, which is a major gap for such a critical portion of the world's economy.
"Consider this," Abruzzese said. "Fourty-four percent of all people on the planet live on the coastline. Right there alone that gives you a sense of the impact."
Some estimates have put the value of the ocean economy at $2.5 trillion – a conservative figure.
"If you include that figures should be at least 10 or 15 times higher," Abruzzese said.
The Coastal Governance Index rated 20 countries based on a set of indicators including water quality, minerals, land use and living resources
The countries were scored on a scale of 1 to 100, and some key findings emerged, one of which was this: in general the richer the country per capita, the better the management.
The US, for example, received a score of 85. At the top of the list was New Zealand with 86 points.
"If you're a rich country, you generally have a fairly sophisticated system in place," Abruzzese said.
There are exceptions: Chile and Peru, for example.
Norway, though not one of the countries rated, also would score high on the indicators, Abruzzese added.
Policy and institutional capacity, business environment, water quality, minerals and energy, land and living resources will be further ranked in future studies, he said.
--Drew Cherry
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Thursday, June 4, 10.38 a.m. GMT
The net protein producer
Nutreco’s Knut Nesse also highlighted that today’s farmed salmon is a net protein producer, for one kilogram of salmon, one kilogram of fish proteins are used in its feed.
“Fish today is only 15 percent of the salmon’s diet, it used to be 75 percent,” he said. “We brought it down significantly.“
--Elisabeth Fischer
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Thursday, June 4, 10.32 a.m. GMT
Blue growth – not without aquaculture
Sustainable food production will not be achieved without aquaculture, Knut Nesse, CEO of Nutreco, told the audience at this morning’s panel discussion on new ocean industries, and new ocean opportunities.
Hence, aquaculture will play a pivotal role in driving blue economic development, he said.
"The role of aquaculture is very, very important," he said. "My view is that farmed fish and shrimp production is a very effective food production as such, with low emissions and improving food conversion rations."
In 2014, aquaculture overtook fisheries production for the first time in history – with a production of 70 million metric tons – and it’s only set to grow.
On the way, some “unresolved issues” will have to be solved with strong regulation and strong enforcement of these regulations, Nesse said.
--Elisabeth Fischer
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Thursday, June 4, 9.50 a.m GMT
What do you mean by that?
Perhaps one of the biggest challenges facing management of the world's oceans is agreeing on definitions of what, exactly, everyone means when they talk about the blue economy.
Two new reports from The Economist Intelligence Unit hopes to shed some light, according to Editorial Director Charles Goddard.
"I think this research is going to navigate some of the confusing blue terminology around the blue economy, and how we should define that a little more consistently and clearly," Goddard said.
What is clear, Goddard said, is that the ocean will become an economic force in this century.
Exactly how big a force is the question. Only a few economies measure their GDP from ocean industries. The US, for example, gets 1.8 percent of its GDP from the oceans; China gets 10 percent.
But it's likely that governments are under-reporting the significance of the ocean economy, and leaving out sectors such as oil and gas.
"A whole range of other goods and services and natural capital are not included in economic valuation as well," Goddard said.
"There's a question over how much really needs to be done, but it seems to me there is a lot of work to do in terms of measuring the ocean economy.
"There is a general view that we are heading toward a wave of industrialization in the oceans."
Governments currently under appreciate both the importance of the ocean economy, and the importance of growing it sustainably.
"At the moment, the ocean health side of the blue economy is not a primary goal," Goddard said. "It's really just a byproduct of this discussion of the growth of the blue economy."
--Drew Cherry
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Thursday, June 4, 9.45 a.m. GMT
Africa’s big ocean strategy
The African Union Commission recently launched its Decade of African Seas and Oceans strategy, which aims to address the continent’s maritime challenges for sustainable development and competitiveness.
"It’s a new porridge we’re cooking for ourselves," commented Nkosazana Dlamini Zuma, chairperson at the African Union Commission, during the keynote interview.
The program is set to be launched next month, and could potentially involve 38 African states.
"Up to now Africa has not paid a lot of attention to the potential of the oceans or even the health of our oceans,” Zuma said.
Only about 2 percent of the vessels fishing in African waters belong to the continent, Zuma said, adding commercial fishing is still not an industrial “column” for Africa.
As a result, illegal fishing, dumping toxic wastes, pollution and other issues are still rife, Zuma said, but that is set to change, she hopes.
The project is about basic initiatives such as getting young people trained in maritime jobs, something she called “skilled evolution.” But most of all it’s about “bringing out the recognition of the importance of the sea.
During the next decade, the African Union Commission is aiming to address a number of these issues, and to develop its maritime sectors.
Zuma knows that it’s a long road ahead when discussions start in July but first of all, she said, it’s about starting “a conversation amongst ourselves.”
--Elisabeth Fischer
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Thursday, June 4, 9.20 a.m GMT
Right hand, meet left hand
Alex David Rogers, of Oxford University, had 10 minutes to give an overview of the science of the blue economy – a daunting task.
With 1.3 billion kilometers of mass, the ocean is by far the biggest ecosystem on the planet, but when it comes to maintaining it, "our record so far is not so great."
"We're aware of obvious ecosystem services," Rogers said, noting that the fisheries sector is worth $240 billion, and makes up 20 percent of the protein for 2.6 billion people.
Aquaculture, renewable energy such as deep-water turbines and deep-sea hydrothermal vents, tourism and deep-sea mining are all important elements of exploiting the ocean economy.
The trouble?
"Management of the oceans is still very much a sectoral activity," Rogers said. "We manage fisheries very separately from shipping, for example.
"In many cases these sectors are simply not talking to each other."
--Drew Cherry
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Thursday, June 4, 9.00 a.m GMT
Time to talk
Daniel Franklin, executive editor of The Economist opened the third World Ocean Summit Wednesday morning by giving an overview of the state of the blue economy.
The first World Ocean Summit, held in Singapore in 2012, was sparked by a 2008 Economist feature. That event, Franklin said, was a hit, and prompted the group to host another one.
"We were struck by the feedback we got," he said. "We were extremely encouraged."
The Economist's convening power is one of the key factors in fostering dialogue among the diverse set of attendees.
"We question, we probe – I hope we don't take any assumptions for granted and really bring rigor and research to bear," Franklin said.
"It fits very well into our mission and what we hope to do."
The whole question of the blue economy has come onto the agenda more and more on the global stage, Franklin noted, pointing to US policies and G-7 meetings.
"It's definitely not enough to put it onto the agenda," he said.
--Drew Cherry
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Thursday, June 4, 7.20 a.m. GMT
Blue economy
The Economist’s World Ocean Summit kicked off in the scenic town of Cascais in Portugal Wednesday, opening its doors to hundreds of delegates from across the globe.
The conference got underway with a welcome cocktail reception at the stunning Citadela Palace (check out the pictures on Twitter here!).
Charles Goddard, editorial director Asia-Pacific at The Economist Intelligence Unit and editorial director at World Ocean Summit, and Portugal's President Anibal Cavaco Silva welcomed the guests, which range from high-profile policy-makers, maritime industry heavyweights, investors and representatives from green groups.
This year's event runs under the tag-line "blue economy."
Though not yet clearly identified, it offers a vision of the ocean and coasts as a new source of economic growth, job creation and investment, The Economist writes in the conference program.
The summit will explore the opportunity that blue growth presents to reconcile economic growth with environmental sustainability, and will try to offer insights and ideas for action.
The biggest question on the agenda is: How can we make the transition from a conventional ocean economy to a new "blue" economy?
Let's see if we can find some answers.
IntraFish, which again joined forces with The Economist as a supporter of the summit, will keep you up to date, both through this blog and on Twitter. Follow @intrafish, @drewcherry and EF_intrafish to get all the news and join the dialog using the hashtag #oceansummit.
--Elisabeth Fischer
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