Slide deck for the IPCC Briefing to Latvian Parliamentarians
OECD presentation - Fiscal incentives to achieve SDG14
1. FISCAL INCENTIVES TO
ACHIEVE SDG14
Katia Karousakis, Biodiversity Team Leader, Environment Directorate
and
Roger Martini, Senior Economist, Fisheries, Trade and Agriculture
Directorate,
OECD
UN SDG 14 Oceans Conference
5 June 2017
Insights, lessons and data from the OECD
2. • SDG 14.1 significantly reduce marine
pollution
• SDG 14.2 sustainably manage and protect
marine and coastal ecosystems to avoid
significant adverse impacts
• SDG 14.5 conserve at least 10 per cent of
coastal and marine areas
• SDG 14.6 reform/prohibit certain forms of
subsidies
Fiscal instruments useful /relevant for
several SDG 14 targets
3. Financing
Domestic govt
budget
Often the main source of finance in many developed countries
External devt
finance
Often a substantial source of finance in many developing countries
Trust funds Several trust funds established e.g., Belize, Mauritania and Mexico
User fees (e.g.,
entrance fees)
Often a substantial source of finance in a number of MPAs. Entrance
fees used in Australia, Mexico, Belize, Thailand and the Galapagos
Islands in Ecuador
Taxes and fines France (1995 Barnier Act). Tax on maritime passenger ships in
protected areas – with revenue earmarked
Subsidies MPAs can enhance fisheries by protecting nursing grounds
PES A few examples in marine context – e.g., sea turtles in Tanzania, grey
whale habitat protection Mexico, blue carbon (seagrass)
Financing marine protected areas and
the role of fiscal incentives
Source: OECD (2017) Marine Protected Areas: Economics, Management and Effective Policy Mixes
4. Funding MPAs via a conservation trust fund
EU Fisheries Partnership Agreement with Mauritania
Political economy insights: Environmental NGOs instrumental ,
credible strong broker (FIBA).
Source: OECD (2017), The Political Economy of Biodiversity Policy Reform
6. • Is the fisheries sector intended to
contribute to overall economic growth, or
is it a tool for something else?
Set out objectives for the sector and
recognise trade-offs
Regional
Development
Economic
Growth
Food
Security
Poverty
alleviation
Export
earnings
7. • They are not
properly designed
for their objectives
• They cause more
problems than
they solve
Most commonly-used fiscal policies
don’t work
OECD: USD 7 billion per year
in support
-38% landings
-44% fishers
-28% vessels
Stocks depleted
Sense of
dependency
8. Policy Effect Beneficiaries
Input support More fishing effort Suppliers of gear,
bait, etc.
Investment aids More capacity Past owners of vessels
or licences
Income aids Higher fisher
household income
Fishers, local region
Infrastructure Higher income and
investment
Current and past
owners of vessels and
licences
Who gets what from fiscal support?
Income aids work pretty well-but are they fair to non-fishers?
Also, such transfers do not provide an overall economic benefit