Devising Modern Fintech Solutions to Combat Global IUU Fishing and Protect Marine Ecosystems

Abstract

Illegal, unreported, and unregulated (IUU) fishing extracts 180 million tons of fish annually, an unsustainable rate that, if continued, could threaten marine ecosystems and the livelihoods of 600 million people globally.  Overfishing methods destroy critical habitats, including coral reefs and seagrass beds, and unbalances marine food chains.  These consequences have already affected our ecosystem, driving many species such as Chinese Paddlefish to extinction.  This paper proposes fintech-driven solutions to combat IUU fishing and promote sustainable marine practices.  For example, taking advantage of blockchain, a secure and immutable ledger, fishing activities can be transparently tracked, ensuring compliance with environmental, social, and governance (ESG) standards.  To incentivize fishermen and companies to comply with these sustainable practices, fintech platforms can reward compliant fishers with enhanced banking access and public funding.  The impacts can provide greater impact in economically challenged coastal communities, where overfishing is frequent. Case studies, such as The Nature Conservancy’s Blue Bonds program, demonstrate how financial applications can offer the key in restoring fish stocks and protecting marine biodiversity.