Climate Change Impact and Structural Reforms in Kiribati
KIRIBATI
4.
The establishment of the PIPA in 2008 was another key policy decision in Kiribati's
fisheries management. Established in 2008 through a regulation, the Phoenix Islands, accounting
for 11 percent of Kiribati's EEZ, became a protected area, aimed at protecting marine life, and
enhancing fish stocks and biodiversity. In 2010, the site became a UNESCO World Heritage site, as
an essentially pristine environment, free from human activities, and is one of the largest designated
MPA in the world. In 2015, the government decided to fully close the PIPA to commercial fishing
(previously, fishing was banned in only 3 percent of the reserve, between the 8 uninhabited islands),
especially to protect bigeye tuna, a species prized for sushi that had been significantly overfished
(Pala, 2014). Through an arrangement with international partners, the PIPA Trust Fund was set up to
provide long-term sustainable financing for the conservation of terrestrial and marine biodiversity in
the PIPA. The arrangement would also explore compensatory income from foregone fisheries
revenues and possibly develop alternative income sources, including from high-end and low-volume
tourism and scientific expeditions.
5. The Kiribati Cabinet announced in November 2021 the reopening of the PIPA to
commercial fishing, reversing the 2015 commercial fishing ban. In doing so, it cited large
uncompensated fishery revenue losses and substantial development financing needs. Specifically,
the government claimed that between 2015 and 2021, the demand for the Kiribati fishing permits
declined by 8 percent and would have a negative impact on future VDS allocations. It estimated the
total revenue loss between US$60 and US$140 million over 2015-2021 for purse-seine and around
US$5.9 million for longline fisheries, translating into a loss of 720 days of fishing effort under the
VDS. The reopening of the PIPA is aimed at attracting some fishing companies to return, which left
when the PIPA was closed. It would also allow Kiribati to sell more fishing days at a higher price
under the VDS. The reopening is expected to take several years and involves designating areas for
fishing, tourism, and conservation.
6.
More broadly, the question is whether sustainable fishing and greater revenue
mobilization can co-exist in the medium to long term, once the PIPA is reopened. To answer
this question, the paper analyzes fisheries income developments in Kiribati and the wider WCP area,
using data back to the 1960s to gauge longer-term trends that affect fish stocks. Next, it examines
the literature on the MPAs to see how the alternative fishery management arrangements may affect
fishery revenues and fish stock sustainability. Based on this, it draws tentative policies for managing
the reopening of the PIPA.
B. Developments in Catch Volumes and Sustainability
7.
Like elsewhere in the WCP, Kiribati's tuna sector, with a focus on skipjack, has grown
exponentially over the past 20-30 years, both in terms of catch volume and value. Since the
1980s, as the purse seine fishing developed,³ Kiribati's annual total catch volumes increased sharply
3 Purse seine accounts for the majority of catch, but longline catch has a relatively higher value as it is destined more
for the sashimi market, while purse seine fishing goes to canneries.
INTERNATIONAL MONETARY FUND
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