en sustainable markets

sustainable markets
and innovative finance
fishermen carrying seaweed

accelerating behavior change

through economic incentives

For fishers and farmers alike, there are long-term benefits that come from transitioning to sustainable practices. In the short term, however, a transition from unsustainable to sustainable methods of fishing or farming can result in economic costs as well as reduced or unstable incomes from, for example, a reduction in catch quantity. Financial incentives help bridge such financial gaps and accelerate the adoption of sustainable behaviors.

To address this need, the Sustainable Markets Group at Rare is developing a range of private and public sector partnerships and investment vehicles. These create value for communities and generate conservation impacts as well as financial returns for investors.

By combining these financial strategies with our community engagement expertise, we are uniquely positioned to scale conservation solutions in the key areas of coastal fisheries, clean water and sustainable agriculture and thus contribute to our long-term goals of improving ecosystem health, climate resilience, food security and the incomes of the poorest communities in the developing tropics.

impact investing for conservation

Rare has identified a rapidly emerging opportunity to develop a portfolio of investments that will offer significant conservation impacts while generating financial returns. These investments make a critical contribution to help transition fisher and farmer behaviors to be more sustainable in our programmatic focal areas of sustainable coastal fisheries, water and agriculture.

A first investment product, launched in 2017, is the Meloy Fund: a first-of-its-kind impact fund that invests in fishing-related enterprises that support sustainable coastal fisheries in the Philippines and Indonesia. 

blending finance for long-term sustainability

Scaling Rare’s grassroots, multi-local solutions will require more than philanthropy. Rare’s Blended Finance initiative employs a strategy that catalyzes investment from both the public and private sectors in order to, over the long run, sustainably finance the management of natural resources. The case for deploying capital from these sectors, which will total many billions of dollars, depends upon achieving blended values — both financial and non-financial — that are meaningful to the contributors of capital. By understanding the costs and benefits of scaling Rare’s work in coastal fisheries, clean water and sustainable agriculture, Rare can calculate the benefits to people and nature and facilitate the provision of blended capital to finance scale and long-term management of these natural resources.

Rare’s Blended Finance initiative has kicked off in the Philippines, working on a bottom-up cost-benefit analysis of investing in coastal fisheries resource management. This research will help inform both the design and implementation of combining public and private money in order to incentivize national adoption of sustainable fisheries management.

Rare’s initial assessment of the blended costs and sources of funding for scaling sustainable fisheries management in the Philippines requires $700M of investment from various sources over time:

increasing the value of natural resources

Rare is working with private sector partners and local organizations to design, test and scale multi-local interventions in the agriculture and fisheries sectors that help increase the value of natural resources and ensure that a portion of that accrues to local communities. By reducing waste, increasing efficiencies, adding value to commodities and improving supply chains, fishers and farmers can achieve more value per unit and therefore make better decisions about long-term commitments to sustainable resource management. In the Philippines, for example, fishers received a 20% premium from top hotels and restaurants for harvesting their catch responsibly. In Indonesia, Rare helped seaweed farmers improve quality and yields, leading to a doubling of incomes in less than a year. These projects and others help bridge the gap in the adoption of sustainable behaviors and can lead to greater incomes for communities, in addition to the benefits of climate resilience and the protection of biodiverse ecosystems over time.

Rare has moved quickly to build a compelling approach for investment in conservation and JPMorgan Chase is proud to support its innovative efforts."

Matt Arnold, Global Head of Sustainable Finance for JPMorgan Chase

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