Investing in unsustainable EU fishing is risky business
For further inquiries and interview requests, please contact:
Nina Thuellen, Greenpeace Common Fisheries Policy Coordinator nina.thuellen@greenpeace.org +43 664 5484553
Dave Walsh, Greenpeace Communications dwalsh@greenpeace.org +32 493 140 966
For further inquiries and interview requests, please contact:
Nina Thuellen, Greenpeace Common Fisheries Policy Coordinator nina.thuellen@greenpeace.org +43 664 5484553
Dave Walsh, Greenpeace Communications dwalsh@greenpeace.org +32 493 140 966
Recent changes to EU fishing and seafood legislation means that the financing of fishing operations reliant on overexploited stocks, or the use of destructive or unselective methods will prove a high risk to investors, Greenpeace warned today.
The newly published Greenpeace briefing "Risky Business - Why Smart Investors Must Avoid Unsustainable Seafood Operations" outlines how a culture of overfishing, combined with sweeping changes in the European Union's Common Fisheries Policy (CFP), the Common Market Regulation and the European Maritime and Fisheries Fund (EMFF) may radically affect both the profitability of fishing companies, and the seafood market in general.
"Thanks to the reformed EU Common Fisheries Policy regime, which encourages Europe's fishing community to shift towards environmentally sustainable methods and to embrace practices that bring positive social impacts, opportunities are narrowing for Europe's industrial fishing operators, for example Sapmer, Inpesca S.A and Albacora S.A., who have spent decades profiting from destructive fishing practices, weak fisheries policies, large subsidies and financial investment", said Greenpeace Common Fisheries Policy Coordinator Nina Thuellen.
"Smart investors should take note of these changes, and start moving their money towards brighter financial prospects, and a better future for oceans and fish stocks", continued Thuellen.
The new CFP requires that fishing opportunities be reduced for overfished stocks, and a 'no-discards' policy will be observed, making unselective fishing operations more costly. In addition, fishing capacity will need to be reduced and higher sustainability standards will also be applied to EU fishing vessels operating outside EU waters.
Alternative opportunities are highlighted in the briefing, such as investment in selective, low-impact fishing operations - like hand line and pole and line fisheries, which should benefit from greater access to fishing opportunities under the new CFP. The new rules foresee that access to fishing opportunities will be reorganised, moving to a system that is performance-based and incentivises low-impact fishing.
"With this new regulatory reality for Europe's fishing industry in place, the finance and banking sector have a real chance to become agents of positive change within the fishing industry. The most clued-in investors will see the common sense in transferring their funding towards low-impact, sustainable fisheries businesses that ensure healthy oceans and healthy fisheries", concluded Thuellen.
Download Risky Business - Why Smart Investors Must Avoid Unsustainable Seafood Operations
Notes for Editors:
Since 2009, Sapmer owner of the monster boat Franche Terre (flagged as Mayotte) has invested in the construction of at least eight new tuna purse seiners for operation in the Indian Ocean. In 2012, French public financier L'Agence Francaise de Développement (AFD) lent Sapmer €13 million for the construction of the tuna purse seiner Belouve .
In 2010, BRED and Banque de la Réunion -- Groupe BPCE loaned €75 million to Sapmer for construction of three tuna purse seiners. The UK's Barclays Bank has loaned a minimum of €4.25 million to Sapmer's subsidiaries for their operations in Mauritius. However the company appears to be in financial difficulties, reporting a loss of €11.9 million in 2014 . A reshuffle of Sapmer's top management took place in December 2014 and operations were shifted to Seychelles for cost-cutting purposes. Due to its poor financial performance, Sapmer has delayed plans for construction of ten new tuna vessels for the Pacific region .
In December 2011, Spain's BBVA (Banco Bilbao Vizcaya Argentaria) provided a short-term loan of €6.4 million to Inpesca S.A., owner of monster boat Txori Argi. In 2012, the vessel was caught fishing without a licence in the EEZ of Mozambique and fined €1.2 million. The Txori Argi was released from custody after the Spanish bank BBVA guaranteed payment of the fine to the Mozambique Ministry of Fisheries. However, when Mozambique's government attempted to cash the guarantee, it was unable, and asked the Indian Ocean Tuna Commission (IOTC) to put Txori Argi on its Illegal, Unreported and Unregulated (IUU) fishing vessel list. The case was settled for $700,000 (€523,581) in 2013. Inpesca owns the Txori Argi, the Txori Udin and the Txori Berri; all vessels were suspected of being involved in fishing with false licences in Liberian waters .
Kutxabank, BBVA, Banco Santander, Caixa Galicia (now merged with other banks and named Abanca) and La Caixa together provided around €15.7 million of bank loans to Albacora S.A. as of December 2012. Albacora S.A. is the owner of monster boats Albacora Uno and Albatun Tres; both vessels have a long history of convicted illegal fishing activities of tuna in the Western Central Pacific, including in the Kiribati EEZ .
In 2010, the Albacora Uno was caught fishing illegally on 67 Fish Aggregation Devices (FADs) over a period of two years in the US Exclusive Economic Zone (EEZ). Albacora S.A., the company that owns the vessel and the USA's National Oceanic and Atmospheric Administration (NOAA) agreed on a settlement of US$5 million .
Albacora Uno was one of three vessels caught by the Marshall Islands Marine Resources Authority (MIMRA) in July 2012 with shark skins, fins and carcasses on board . It was fined US$55,000 by MIMRA. Eighteen shark carcasses were confiscated. In October 2013, the Albacora Uno was fined €1 million for six incidents of illegal fishing in the Nauru EEZ .
L'AFD soutient l'investissement du principal groupe de pêche réunionnais
Sapmer posts €11.9m loss as tuna sales dive
Sapmer puts PNG project on standby during bid to salvage tuna ops
The Spanish flagged vessel Txori Argi has been charged for illegal fishing in Mozambique EEZ - See more here and here.
See Monster Boat report for details and sources of IUU activities:
NOAA Protects U.S. Waters From Illegal, Unreported and Unregulated Fishing. June 2010.
Shark Defenders: Pirates Busted for Poaching Sharks in Marshal l Islands, July 2012.
Radio New Zealand International. Nauru court fines Spanish vessel and crew US$ 1 million, October 2013.