Rare raises US$6 million in outcome funding to launch world’s first small-scale fisheries impact bond
September 24, 2024. (New York City) Rare announced today that it has raised US$6 million to launch a first-of-its-kind Small-Scale Fisheries (SSF) Impact Bond (Bond), the world’s first such bond specifically designed to channel private, public, and philanthropic capital to the small-scale fisheries sector. The Bond, first unveiled at COP28 in Dubai, will finance community-led co-management of small-scale fisheries, a proven pathway to meeting the needs of people and nature. The initial investment will fund the Bond’s pilot: the establishment of three new community-based conservation management systems in Southeast Sulawesi, Indonesia called Managed Access with Reserves.
Structured to be implemented over five years, investors including Pershing Square Foundation (PSF) and Minderoo Foundation are providing upfront capital to fund the project. Outcome funders include UK DEFRA through the Ocean Risk and Resilience Action Alliance (ORRAA), Milkywire, PSF, Rumah Group, the Builders Initiative, and the Walton Family Foundation, with final contracts pending approval. Rare worked with Levoca to complete the design and technical feasibility study for the Bond and Levoca will be providing performance management during project implementation. Reed Smith LLP is international counsel.
“We are inspired by the commitment made by our partner funders to support and scale community-led conservation of our ocean,” said Kate Schweigart, VP of Innovative Finance at Rare. “Philanthropy alone is not enough to finance the protection and sustainable management we need for marine biodiversity, as well as the food security, livelihoods, and climate resilience of coastal communities. This first-of-its-kind Impact Bond is attracting the kind of investment we need to achieve 30×30 and the Sustainable Development Goals.”
The Bond leverages an outcome-based financing (OBF) model, where investors are repaid by outcome funders only when specific, measurable results are achieved and independently verified. This innovative approach links funding to real-world impact, driving investment toward protecting both biodiversity and the livelihoods of coastal communities. By focusing on outcomes like establishing sustainable fisheries, increasing fish biomass, and stabilizing marine habitats, the Bond ensures that every dollar contributes to tangible, lasting change.
By drawing on Rare’s decades of successful community-led conservation practices, the Bond brings together private, public, and philanthropic capital to protect coastal ecosystems and enhance community resilience. This model offers a scalable solution for managing fisheries and marine biodiversity, providing countries with a vital pathway to meet their 30×30 goals—protecting 30 percent of land and sea by 2030—while supporting sustainable development and climate resilience. The Bond will harness cutting-edge advancements in biodiversity monitoring, leveraging the pioneering efforts of Minderoo’s OceanOmics program and environmental DNA (eDNA). eDNA technology can deliver scalable and efficient biodiversity monitoring solutions.
“The SSF Impact Bond exemplifies the kind of solution we need for scalable, community-driven conservation,” said Karen Sack, Executive Director at ORRAA. “By focusing on outcomes, we can drive real impact that benefit both people and the planet while setting a precedent for how future conservation efforts are funded.”
As this initial Bond rolls out, the project partners are already laying the groundwork for replicating and scaling the model. The SSF Impact Bond will be scaled to protect, restore, and sustainably manage thousands of hectares of coastal ecosystems. Importantly, this first-of-its-kind SSF Impact Bond will de-risk future investment in small-scale fisheries and the blue economy.
For more information, download the Impact Bond 2-pager or visit Rare’s Innovative Finance program.
###
About Rare
Rare is an international non-profit organization specializing in social change for people and the planet. For nearly 50 years, Rare has partnered with individuals, communities, and local leaders on the frontlines of conservation to promote the adoption of sustainable practices. With a behavior-based approach, Rare empowers individuals and communities to better manage and protect nature, on which all of us depend. Learn more at rare.org.