Small-scale Fisheries and the New EU Budget: Goodbye EMFAF, Hello NRPF
What’s in a Name? The More Things Change, the More They Stay the Same.
By Brian O’Riordan, LIFE Policy Adviser
What’s in a name? In the recently announced EU budget for the next period – the Multiannual Financial Framework (MFF) for the period 2028 to 2034 – fisheries funding under the EMFAF has been subsumed into the National and Regional Partnership Fund (NRPF) worth an eyewatering Euros 865 billion. Within the NRPF, 2 billion Euros has been “ringfenced (as a minimum) for fisheries”, says Commission President, von der Leyen. In addition to the 2 billion, fisheries interests will be able to apply for sectoral support (including for modernisation, decarbonisation, fleet renewal, fish marketing, fisheries regeneration) under the NRPF.
The more things change, the more they remain the same, and it is still far from clear how this huge readjustment could help small-scale fisheries (SSF). In this piece, we take a preliminary look at these new arrangements, and what needs to be done for them to make the difference needed to bring SSF back from the brink, and to support the sector into the future so that it can realise its full potential in the fight to restore Europe’s declining seas.
As for the Common Fisheries Policy, so for the funding of fisheries: small-scale fisheries are a forgotten fleet, a policy outlier – and have been for the past 4 decades. Will the new policies in the pipeline – the Ocean Act and the National and Regional Partnership Plans (NRPP) for sectoral support – change the status quo? Both the Ocean Pact (the precursor of the Ocean Act) and the EC proposal for sectoral support for the next period, make small-scale fisheries a priority. This is to be welcomed.
For LIFE, bringing small-scale fisheries back to the centre of fisheries policies requires making fishing fair through a differentiated approach. Such an approach must take into account the special and different characteristics of the small-scale fleet – that set it apart socially, economically and environmentally, and which could make it a game changer for Europe’s troubled seas. To achieve this, LIFE is calling on the Commission and European decision takers to “Make Fishing Fair”. In this endeavour, sectorial support is key to making fishing fair, alongside fair access to resources and fair access to markets.
LIFE contends that fair access to sectoral support for all fleet segments should be based on economic, social and environmental considerations (i.e. giving priority those who fish in the most sustainable way and who provide the greatest benefits to society). In a nutshell, fuel subsidies and financial support need to be shifted away from high-polluting, high impacting vessels towards initiatives that support environmentally friendly and socio-economically beneficial fishing.
We await with anticipation some clarity on how the new funding mechanisms included in the new budget for the next 7-year period, 2028-34, will work. In particular, what special mechanisms and safeguards will be included to ensure that the next EU Budget will work for small-scale fisheries, where such issues as generational renewal, fleet decarbonisation, and viability are ever more pressing?
The New EU Budget – the Multiannual Funding Framework (MFF): EMFAF disappears into the National and Regional Partnership Fund (NRPF)
The so-called Multiannual Funding Framework (MFF – the EU’s Budget) has been given a massive shake up by the European Commission, combining many of the existing financial mechanisms – including the European Maritime and Fisheries Fund, the European Agriculture Guarantee Fund, and the fund for Rural Development – into the European Economic, Territorial, Social, Rural and Maritime Sustainable Prosperity and Security Fund.
In her Statement on July 16, Commission President von der Leyen outlined 5 key areas of the new MFF: Firstly, “investing in people, Member States and regions, National and Regional Partnership Plans (NRPPs) worth EUR 865 billion, will be the foundation for investment and reform. At their heart remain cohesion and agriculture”. Von de Leyen stated EUR 300 billion will be safeguarded for farmers’ income support, and “on Fisheries, EUR 2 billion are ringfenced as a minimum”, she said.
For his part, Commissioner for Fisheries and Oceans, Costas Kadis stated that: “fisheries and aquaculture producers will remain the lifeblood of Europe’s coastal communities and economies.”
He went on the reassure that fisheries and ocean related policies would be well reflected in the 3 main building blocks of the new MFF – the National and Regional Partnership Fund (NRPF worth EUR 453 billion), the European Competitiveness Fund (EUR 409 billion to support investments in the Blue Economy, including fisheries), Horizon Europe (EUR 175 billion to support ocean observation, research and innovation), and Global Europe (EUR 200 billion to support Ocean Diplomacy and the fight against IUU).
In addition to the Euros 2 billion ringfenced “for supporting the CFP”, Kadis mentioned that an EU facility worth 63 billion would be available to fund data collection, fisheries control and digital solutions.
It may be worth reflecting that compared to the 6 billion of the European Maritime, Fisheries and Aquaculture Fund (EMFAF) for the previous 7 year period, 2 billion is significant belt tightening. President of the European Parliament Pech Committee, Carmen Crespo Díaz, expressed concern about the CFP losing its identity and importance, stating that “Fisheries is a common EU policy. It must not lose its identity. Without a specific fund, there is no specific policy”.
However, Kadis did emphasise that “EU fishers and aquaculture producers can (also) have access to the big pot of EUR 453 bn, through the national plans (the NRPPs) submitted by EU Member States.” Obviously though, this depends on national and regional priorities and the demands from competing sectors.
Further insights are provided in the proposal published by the European Commission for a regulation in support of the Common Fisheries Policy (CFP), the Ocean Pact and the EU’s maritime and aquaculture policy for the next 7-year funding period
The proposal provides a long list of the areas to be covered by the NRPF for the maritime sectors referred to, namely:
“the generational renewal and energy transition of fisheries, sustainable aquaculture activities, and processing and marketing of fishery and aquaculture products, sustainable blue economy in coastal, island and inland areas, marine knowledge, skilling of blue economy related activities, the resilience of coastal communities and in particular of small-scale coastal fishing, the strengthening of international ocean governance and observation and enabling seas and ocean to be safe, secure, clean and sustainably managed”
Perhaps small-scale fishers can take heart that, in Recital 5, the new NRPF proposal for the combined maritime sectors states that: the particular needs of small-scale coastal fishing, and the contribution to environmental, economic and social sustainability of fishing operations, as defined in the CFP Regulation 1380/2013 should be addressed in the National and Regional Partnership (NRP) Plans, as set out in Article 22 of [NRP Regulation]. Also that Article 3.3 states that “for operations related to small-scale coastal fishing, Member States may grant a maximum 100 % aid intensity rate.”
However, whatever the new instrument may be called, whatever the aid intensity rate, and whatever the nice wording used, unless the specificities of small-scale fisheries are taken into account, funding will continue to fall short.
Three key issues, long neglected in previous EU budgets, need particular attention: a) the lack of political will to support small-scale fisheries and the squeezing of the sector on many sides; b) the complexity of the process for applying for funds, and the heavy bureaucratic burdens imposed; and c) the need for projects to be completed before funding becomes available.
Unless these issues are addressed, and a dedicated delivery system for small-scale fisheries with clear priorities established, whatever name is given to sectoral support and whatever fine declarations are made, funds will not reach Europe’s forgotten fleet. The Blue Seeds initiative in partnership with WWF shows how pre-financing can work for delivering successful and sustainable solutions for small-scale fisheries projects. This could be one line to follow in the NRPPs for funding SSF.
Fleet Modernisation, Decarbonisation and Generational Renewal: more questions than answers
In previous EMFF and EMFAF proposals the Commission had set out conditions for fleet modernisation and renewal, with special provisions for small-scale fisheries (through National SSF Action Plans). Although generational renewal and energy transition are the first mentioned priorities of the NRPF, there is no mention of how this is to be achieved through funding of new vessels (for young fishers) or vessel conversions and retrofitting new engines and equipment (for decarbonisation).
An optimistic interpretation of this would be that the Commission has taken simplification to its logical conclusion and placed the entire responsibility on Member States for deciding what priority fleet renewal and decarbonisation should be given (compared to say agriculture and rural development priorities), and deciding the conditions under which new MFF funding can be allocated through the NRPPs to fisheries. This would mean that the Parliament and the Council will no longer have a role to revise the proposals, but that each Member State will be free to decide on its own framework and priorities.
A more pessimistic view would see this as a further marginalisation of fisheries, with a drastically reduced allocation of funding, in a context of spatial squeezing from more economically and politically powerful Blue Economy sectors, and with aquaculture and as yet ill defined “Blue Food” being prioritised as the future for food to be produced from the sea.
Clarity is therefore needed on what overarching conditions will be applied at EU level, other than the need to be WTO compliant, and with any new builds, modernisation and vessel conversions requiring that national capacity ceilings are respected.
All this needs to be placed in the context of a system for measuring and reporting fleet capacity that is not fit for purpose, rife with misreporting and engine certification fraud, with significant undocumented overcapacity exacerbating overfishing. The current system based on GT and kW is long overdue for reform.
We need a new fit-for-purpose system that can differentiate between fishing capacity that causes overfishing, and capacity that is needed to provide decent working conditions. Such a system also needs to enable the EU vessel fleet to modernise and to incorporate technical solutions for decarbonisation without penalties.
The New European Finding Landscape under the MFF
Any Questions?
The EC has just published a “Q&A” on the new 2028-2034 budget proposal for fisheries, aquaculture and ocean-related activities.
It explains that the goal of the redesign of the MFF for fisheries, aquaculture, maritime and ocean related policies is to reduce fragmentation, better align funding with national and regional priorities, and enable faster budget reallocation in response to crises and exceptional events. At the same time, the proposal aims to grant more flexibility to Member States to better address their needs and priorities.
It highlights that the NRPF can be used to make investments in rural and coastal areas, community-led local development (CLLD), smart specialisation strategies, and support for generational renewal in the fishery and aquaculture sector.
It explains that NRPPs can allocate resources to energy transition measures, and clarifies that: the Competitiveness Fund is explicitly designed to back decarbonisation and innovation – for example modernising vessels, port electrification, green shipbuilding, and blue tech.
It highlights that any fleet support must comply with WTO fisheries subsidies rules and CFP objectives.
What makes small scale fisheries a potential game changer?
- High socio-economic significance:70% of the EU fleet by number, 50% of the seagoing jobs, 19% by value of all EU catches; providing high quality, catch of the day fresh fish; representing an invaluable repository of local traditional and experiential knowledge of marine ecosystems, oceanography and meteorology;
- Low environmental impact: 5% of EU catches by volume, 10% of the fishing capacity, measured by GT.
- Low carbon food production, low carbon livelihood generation; declining use of fossil fuels, 35 litres per day/ 38 Euros per day; fossil fuel consumption of SSF a drop in the ocean compared to other sectors (like maritime transport).
What are the specificities of small-scale fisheries that require a differentiated approach?
- Small-scale fishing is a traditional way of life for many coastal dwellers, who are willing to sacrifice economic gain in order to live and work next to and on the sea, and to practice the profession of their forebears. Such activity may be part-time, seasonal and combined with other activities, providing enough income to get by on.
- SSF is based on micro or nano family based enterprises, the majority with business turnovers of 100.000 Euros or less, many engaged in seasonal or part-time employment, often reliant on unpaid or underpaid labour to make businesses viable, and with little capacity to absorb economic shocks;
- Small scale operations, with single operator or small crew on board, long hours, incurring significant opportunity costs by taking time out to attend external meetings, and with little surplus to invest in hiring representatives to act on the fishers’ behalf;
- Important source of revenue and socio-economic benefits in remote communities with few alternatives, with important links to tourism. A vibrant harbour full of small boats is an invaluable attraction for tourism, without which tourism would decline.
- Low volume, high value production, making producers highly vulnerable to market fluctuations and competition from high volume production and low cost imported products; and
- Limited geographical range and limited fishing opportunities makes the fishing activities especially vulnerable to overfishing and competition from larger scale fishing, climate change impacts, to invasive species (like marine algae) and to displacement from traditional fishing grounds through spatial squeezing.
