Environmentally harmful subsidies – a real threat to biodiversity Policy Dialogue Brussels, 11 th January 2010 Fisheries Subsidies Where are the benefits?

1 Effects of fisheries subsidies Subsidies Overcapacity Catch limits too high Illegal (IUU) fishing

2 Some indication of overcapacity “It becomes a bit awkward if vessels can catch their annual quota in maybe 20 days, which is the case with the low quotas we have at the moment.” Permanent Representative to the EU The European fishing fleets can in many cases exert a fishing pressure on the stocks which is two to three times the sustainable level. Subsidies have contributed to this. EC non Paper on the CFP 2008

3 State of EU Fisheries 88% 30%

4 Where Has All the Fish Gone?

5 A “Simplified Food Web for the Northwest Atlantic” Little knowledge about the effects of over-fishing; High levels of by-catch and discards; Impacts on marine habitat.

6 Selected Fisheries Subsidies Per Year SourceMillion European Fisheries Fund€850 Fuel tax exemption (assessment)€200 Fisheries Partnership Agreements€150 State aid? De-minimis (maximum)€240 Total€1.440 EC contribution to control and enforcement is limited to € 46 million

7 Amount of Fisheries Subsidies In some Member States management costs are higher than the value of landing. 80% of the wealth generated in France, 70% in Italy, 75% in Denmark 60% in Spain.

8 Annual Total FIFG income per fisheries sector employee Source: Poseidon 2010

9 Exacerbating overcapacity Tuna Purse Seiner Fleet in the Mediterranean FIFG : > € 9 Mill. of aid for modernisation > € 8 Mill. for construction ~ € to scrap one single vessel Bluefin Tuna is on the brink of collapse due to over-fishing.

10 FIFG Spending on Key Fleets Source: Poseidon 2010

11 Restructuring the Fleet? Spanish FIFG LengthMeasurePctTotal < 12 meterScrapping7,3%11,3% Reassignment/Transfer 3 rd country0,2% Construction of new vessel2,7% Modernisation1,0% meter Scrapping19,4%36,0% Reassignment/Transfer 3 rd country0,8% Joint enterprises0,2% Construction of new vessel9,6% Modernisation6,0% > 24 meter Scrapping18,2%52,4% Reassignment/Transfer 3 rd country1,3% Joint enterprises3,3% Construction of new vessel21,7% Modernisation7,9% Total 100,0%

12 “Just” spending? FIFG spending for vessels 1994 – % of aid to 20% of the ports 78% of aid to 20% of the vessels 7-30% of vessels have received aid, the majority received no aid Top recipients got up to €5 Million Vessels get repeat funding (up to 17 times) Vessels engaged in illegal fishing activities received aid

13 The way forward: Disclosing subsidies

14 The way forward: Analyzing subsidies CriteriaSupport should:Support should not: Environment  Reduce environmental impact;  Incorporate long term considerations;  Increase fishing capacity or effort; Economics  Promote market transparency;  Pursue synergy with existing market incentives;  Benefit all producers proportionately;  Create conditions for efficient entrepreneurship;  Be directed at individual producers;  Benefit specific groups over others, providing them competitive advantage, on national or international level;  Should not affect profitability; Policy consistency  Be consistent with and strengthen the CFP;  Exploit synergies and be consistent with market incentives;  Create incentives which are inconsistent with other parts of CFP (or other policies) in terms of policy options and pursued impacts;  Attempt to overrule market forces; Policy efficiency  Consider whether alternative policies, with similar affects, but at lower costs can be identified;  Be limited in scope and time.  Be based on short term environmental, economic or political considerations;

15 The way forward: Phasing out harmful subsidies Elimination  Modernisation measures  Fishing ports and shelters;  Development of new markets;  Modification of vessels for other activities;  Fuel tax exemption;  Support to access in 3 rd countries;  Gear selectivity;  Quality and food safety;  Working conditions;  Collection of lost gear. Positive incentives  Control and enforcement;  Management of resources, incl., science, stock assessments, and Natura2000;  Cooperation between science and sector in areas of technology and management;  Development of new technologies to reduce discards, environmental impact or improve energy efficiency, but not supporting their introductions;  Certification and labeling. Transferral to other structural funds  Socio-economic measures, such as sustainable development of fisheries areas.

16 No one said it is easy Discussion dominated by loud, vested interests Crisis is under the surface Fish is just not a polar bear Lack of transparency Lack of public scrutiny Lack of political will and courage Lack of champions and opportunities for political profiling Stop over-fishing or fishing will be over

17 Thank you for your attention