Small Scale Fisheries Impact Bond in Indonesia
Rare
(
Non-governmental organization (NGO)
)
#OceanAction57798
Description
Rare has launched the worlds first Small-Scale Fisheries Impact Bond, a pioneering financial mechanism designed to channel private and philanthropic investment into revitalising coastal communities and ecosystems. This first of its kind initiative brings together private, public, and philanthropic capital to scale Rare’s decades of successful community-led conservation work revitalizing coastal ecosystems and building community resilience. By directly linking financial returns to independently verified conservation outcomes, the SSF Impact Bond establishes a results-driven funding model that enhances both environmental and economic sustainability.
The bond supports the establishment of Managed Access with Reserves (MA+Rs) areas, a system for artisanal fishers that balances sustainable use and protection through reserves, within Marine Protected Areas (MPAs) or as Other Effective Conservation Measures (OECMs) in Southeast Sulawesi, Indonesia. These sustainably managed MA+R sites, help strengthen coastal marine habitats including coral reefs, mangroves, and seagrasses and build capacity and formalization of micro and small businesses, bringing artisanal fisher microbusinesses into the formal economy.
Rare is now focused on scaling this model to drive even greater impact, developing an expanded $70 million Impact Bond in Indonesia and a separate $65 million initiative in the Philippines - both designed to channel private and public capital into ocean conservation at an unprecedented scale. These models will unlock a powerful, outcome-based approach, allowing governments to invest risk-free in the long-term sustainability of their fisheries. By linking funding directly to measurable results, these impact bonds ensure that every dollar contributes to restoring marine biodiversity, increasing fish biomass, and strengthening the resilience of coastal communities. This model provides countries with a vital pathway to meet global goals while safeguarding marine biodiversity, supporting sustainable development, and climate resilience for coastal communities.
Lead Entity; Rare (Non Governmental)
Investors; Pershing Square Foundation (Philanthropic Organization) and Minderoo Foundation (Philanthropic Organization), providing upfront capital
Outcome funders; UK DEFRA (Government) through the Ocean Risk and Resilience Action Alliance (ORRAA), Milkywire (Philanthropic Organization), Rumah Group (Philanthropic Organization), the Builders Initiative (Philanthropic Organization), and the Walton Family Foundation (Philanthropic Organization)
Design and Technical Feasibility Partner; Levoca (Private Sector)
SDGS & Targets
Goal 14
Conserve and sustainably use the oceans, seas and marine resources for sustainable development
14.1
By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution
14.1.1
(a) Index of coastal eutrophication; and (b) plastic debris density
14.2
By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans
14.2.1
Number of countries using ecosystem-based approaches to managing marine areas
14.3
Minimize and address the impacts of ocean acidification, including through enhanced scientific cooperation at all levels
14.3.1
14.4
By 2020, effectively regulate harvesting and end overfishing, illegal, unreported and unregulated fishing and destructive fishing practices and implement science-based management plans, in order to restore fish stocks in the shortest time feasible, at least to levels that can produce maximum sustainable yield as determined by their biological characteristics
14.4.1
14.5
By 2020, conserve at least 10 per cent of coastal and marine areas, consistent with national and international law and based on the best available scientific information
14.5.1
14.6
By 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that contribute to illegal, unreported and unregulated fishing and refrain from introducing new such subsidies, recognizing that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the World Trade Organization fisheries subsidies negotiation
14.6.1
Degree of implementation of international instruments aiming to combat illegal, unreported and unregulated fishing
14.7
By 2030, increase the economic benefits to Small Island developing States and least developed countries from the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture and tourism
14.7.1
Sustainable fisheries as a proportion of GDP in small island developing States, least developed countries and all countries
14.a
Increase scientific knowledge, develop research capacity and transfer marine technology, taking into account the Intergovernmental Oceanographic Commission Criteria and Guidelines on the Transfer of Marine Technology, in order to improve ocean health and to enhance the contribution of marine biodiversity to the development of developing countries, in particular small island developing States and least developed countries
14.a.1
14.b
Provide access for small-scale artisanal fishers to marine resources and markets
14.b.1
Degree of application of a legal/regulatory/policy/institutional framework which recognizes and protects access rights for small‐scale fisheries
14.c
Enhance the conservation and sustainable use of oceans and their resources by implementing international law as reflected in United Nations Convention on the Law of the Sea, which provides the legal framework for the conservation and sustainable use of oceans and their resources, as recalled in paragraph 158 of "The future we want"
14.c.1
Number of countries making progress in ratifying, accepting and implementing through legal, policy and institutional frameworks, ocean-related instruments that implement international law, as reflected in the United Nations Convention on the Law of the Sea, for the conservation and sustainable use of the oceans and their resources
SDG 14 targets covered
| Name | Description |
|---|---|
| 14.2 | By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans |
| 14.5 | By 2020, conserve at least 10 per cent of coastal and marine areas, consistent with national and international law and based on the best available scientific information |
| 14.7 | By 2030, increase the economic benefits to Small Island developing States and least developed countries from the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture and tourism |
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Kate, Vice President, Innovative Finance