{"id":1441,"date":"2010-06-03T07:50:32","date_gmt":"2010-06-03T14:50:32","guid":{"rendered":"http:\/\/blogs.edf.org\/edfish\/?p=1441"},"modified":"2010-06-03T07:50:32","modified_gmt":"2010-06-03T14:50:32","slug":"icelands-itq-fisheries-management-demonstrates-the-benefits-of-well-designed-catch-shares","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/edfish\/2010\/06\/03\/icelands-itq-fisheries-management-demonstrates-the-benefits-of-well-designed-catch-shares\/","title":{"rendered":"Iceland’s ITQ Fisheries Management Demonstrates the Benefits of Well Designed Catch Shares"},"content":{"rendered":"
\"Icelandic<\/a>
Icelandic Fishing Boat - Source: FutureAtlas.com<\/figcaption><\/figure>\n

While the world has been recently transfixed with the awe, beauty and power of Iceland\u2019s Eyjafjallajokull<\/a><\/strong>, we at EDFish have been thinking about the other wonders of Iceland, namely what occurs under the vast ocean surrounding the island nation.\u00a0 Located on some of the most historically productive fishing banks in the world, Iceland has long been a nation based on fishing, and this is reflected in their aim \u201cto ensure the sustainability of the fisheries<\/a><\/strong> while emphasizing the economic benefits of the fisheries sector.\u201d\u00a0\u00a0<\/p>\n

In fact, Iceland\u2019s annual marine catch<\/a><\/strong> has average 1.1 million metric tons; almost 2% of the global marine harvest.\u00a0\u00a0This catch is directly responsible for 8% of Iceland\u2019s gross domestic product. Up to 1\/5 of the nation\u2019s GDP is directly and indirectly attributable to the fishing industry!\u00a0 At the same time the industry has been very profitable in recent years. Clearly the entire nation benefits from the fishing sector. But, this hasn\u2019t always been the case.\u00a0<\/p>\n

Profitability of the Icelandic fishing industry was poor and declining until the implementation<\/a><\/strong> of Individual Transferable Quota systems, a form of catch shares<\/strong><\/a>.\u00a0 Iceland first implemented ITQs in the herring fishing in 1976.\u00a0 The program was expanded to demersal fisheries in 1984, to nearly all fisheries in 1991, and in 2004 to incorporate all commercial vessels into the system.\u00a0 The catch share system is \u201cthe cornerstone<\/a><\/strong> of the fisheries management system.\u201d\u00a0\u00a0 The value of the ITQs has increased greatly since 1984 (from about US $25 million to around US$4 billion) due to introduction of more species and sectors into the system and higher unit value of ITQs.<\/p>\n

The ITQs haven\u2019t just improved the value of the fisheries; they have been a key ingredient for successful resource management.\u00a0 In fact, Iceland stands out as a global example: while fisheries around the world are declining, no stocks have collapsed in Iceland since the implementation of ITQs decades ago, and several have substantially improved including herring and haddock.<\/p>\n

Effective management has made the difference. Dr. Ragnar Arnason, Professor of fisheries economics at University of Iceland, reports<\/a><\/strong>:\u00a0<\/p>\n

“There is evidence of substantially improved resource stewardship under the ITQ system.\u00a0 First, TACs are now generally adhered to.\u00a0 Second, and more importantly, there are pretty clear indications that the fishing industry, i.e. the holders of ITQs, are much more willing now than before to accept and even support radical reduction in TACs in order to rebuild fish stocks.\u201d\u00a0\u00a0<\/p><\/blockquote>\n

For a nation largely dependent on fishing, this is critical to their prosperity.<\/p>\n

\"Icelandic<\/a>
Icelandic Fishing Boats - Source: FreeFoto.com<\/figcaption><\/figure>\n

In 2008, Iceland came under international scrutiny as the financial system crumbled on the world\u2019s stage. The collapse of the three biggest banks in Iceland left the country with a crippling national debt.\u00a0\u00a0Despite the difficulty from the financial meltdown fisheries have continued to provide stability and strength to the Icelandic economy.\u00a0<\/p>\n

In an atmosphere where the national stock market lost 97% of its value and more than 780 companies have been bankrupted, Iceland fishing companies have remained stable<\/a><\/strong>.\u00a0In fact, the largest fishing company in Iceland, HB Grandi hf<\/a><\/strong>, kept all 650 employees on the payroll during the financial crisis and some even received a raise.\u00a0<\/p>\n

In 2009, Iceland\u2019s export production of marine products increased by 10.9%<\/a><\/strong>, in addition to a 21.4% increase in product value.\u00a0 Under the catch share program, fishing fleets increased in size by 53 vessels, compared to 2008, while staying within the catch limit.\u00a0 Every year since 2001 profits in the fishing industry has exceeded 5% of revenues<\/a><\/strong>.\u00a0 Clearly in a time of significant economic upheaval, Iceland\u2019s sustainable management of fisheries has bolstered the nation.<\/p>\n

The wealth of Iceland\u2019s fishing grounds is one of the main sources of debate in the Iceland\u2019s application to become a full member of the EU.\u00a0 The country is concerned about the potential impact to their fisheries. As a member of the EU, fishing resources would be managed under Europe\u2019s Common Fisheries Policy and foreign fleets could potentially have access to Iceland\u2019s fish stocks. Fishermen and fishing companies<\/a><\/strong> are not keen to open their well managed fisheries to exploitation by other countries.\u00a0 Icelandic fishing companies are required by law to be controlled by Icelandic entities and not to exceed 25% ownership<\/a><\/strong> by foreign entities.<\/p>\n

Design is critical to all catch share systems and Iceland has designed their system to meet their goal of responsible fisheries, specifically focusing on resource sustainability and economic benefits.\u00a0 Iceland uses an individual-based approach with certain stipulations on limiting concentration and, to a certain extent, trading to meet specific goals.\u00a0 For example, no fishing entity (individual, company or group of companies) can hold more than 12% of the value of ITQ fisheries and a there is a separate small boat quota system for boats less than 15 gross tons in which the quota can only be transferred with other small boats in the system.\u00a0<\/p>\n

The ITQ system in Iceland\u2019s fisheries provides a window into the environmental, economic, and other broader public benefits that well-designed catch shares can provide.<\/p>\n","protected":false},"excerpt":{"rendered":"

<\/p>\n

While the world has been recently transfixed with the awe, beauty and power of Iceland\u2019s Eyjafjallajokull, we at EDFish have been thinking about the other wonders of Iceland, namely what occurs under the vast ocean surrounding the island nation. Located on some of the most historically productive fishing banks in the world, Iceland has long been a nation based on fishing, and this is reflected in their aim \u201cto ensure the sustainability of the fisheries while emphasizing the economic benefits of the fisheries sector.\u201d<\/p>\n

<\/p>\n","protected":false},"author":1991,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[472,597,1054,1056,1055],"coauthors":[5148],"class_list":["post-1441","post","type-post","status-publish","format-standard","hentry","tag-catch-shares","tag-fisheries-management","tag-iceland-fishery","tag-indiviual-transferable-quota","tag-itq"],"acf":[],"yoast_head":"\nIceland's ITQ Fisheries Management Demonstrates the Benefits of Well Designed Catch Shares - EDFish<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/edfish\/2010\/06\/03\/icelands-itq-fisheries-management-demonstrates-the-benefits-of-well-designed-catch-shares\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Iceland's ITQ Fisheries Management Demonstrates the Benefits of Well Designed Catch Shares - EDFish\" \/>\n<meta property=\"og:description\" content=\"While the world has been recently transfixed with the awe, beauty and power of Iceland\u2019s Eyjafjallajokull, we at EDFish have been thinking about the other wonders of Iceland, namely what occurs under the vast ocean surrounding the island nation. 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