The Loan Guarantee Facility (LGF) was launched in January 2025 by Clarmondial and the Marine Stewardship Council (MSC) to unlock loans for fisheries implementing sustainable management practices.
Responsible fishing plays a critical role in protecting marine resources and coastal ecosystems, and progressing toward higher performance standards requires new investments in science, governance, monitoring, and management. However, many fishing companies committed to these efforts struggle to access the necessary capital. The LGF is designed to help close that gap.
Clarmondial has been engaging with fisheries, processors, financial institutions, and NGOs across numerous regions to evaluate their needs. This stakeholder consultation yielded valuable insights and confirmed that guarantees are a practical and effective tool to support fisheries transitioning toward MSC certification. Implementation is ongoing, with additional efforts to scaling the facility planned in 2026.
Field insights: unlocking the potential of fisheries in transition
Direct engagement with fisheries, including a recently concluded transaction in northern Peru, has deepened our appreciation of the operational, market, climate, and regulatory dynamics that shape fishing companies’ access to credit. Marine ecosystems are highly sensitive to climatic and oceanographic conditions. Events such as El Niño influence stock availability and alter catch levels. Some species, like squid or scallops, fluctuate in abundance, creating sudden peaks and declines in activity. Weather-related port closures and temporary fishing bans compound these pressures.
These realities translate into variable and sometimes unpredictable cash flows. Limited collateral availability often further restricts access to credit. At the same time, fisheries implementing sustainable practices take on additional responsibilities, such as data collection and reporting, supporting scientific research, upgrading equipment, coordinating with government agencies, and undergoing independent evaluations. Together, these factors can strain working capital and increase financing needs, even for well-established companies.
LGF helps address these constraints by providing guarantees that unlock additional bank loans. In Peru, the facility enabled a leading local lender to increase the credit limits of a fishing company working toward MSC certification. This additional access to loans will support sustainability-related improvements and strengthen working capital.
Our experience, together with growing interest from fisheries and banks globally, shows that guarantees are a practical way to unlock investment in sustainable fishing. This simple, well-established instrument made it possible to channel more capital through existing bank products to support the transition, without requiring new financial instruments.
Where we aim to go next
Clarmondial is now working to deploy the LGF in additional geographies, supporting fisheries that are advancing sustainability efforts and require improved access to credit. We continue to collaborate with financial institutions to help them unlock capital for fisheries in transition by sharing risk through the LGF.
On-the-ground engagement has also highlighted opportunities to extend the LGF’s scope beyond fisheries to related coastal and marine businesses, such as mariculture enterprises and seafood processors. Their activities influence the viability of fisheries, health marine ecosystems and the livelihoods of costal communities. Supporting these businesses may require complementary financing tools, including mechanisms that enhance working-capital flexibility, targeted risk-sharing arrangements, or technical assistance to help them meet banks’ requirements. While the transaction in Peru showed the value of deploying standard instruments in innovative ways to support fisheries in transition, future opportunities may call for more tailored structures. Our approach won’t change, relying on simple, proven instruments where they are effective and introducing new instruments only where they add value.
We look forward to sharing updates as the LGF evolves and to continuing to work with partners committed to advancing innovative solutions for sustainable oceans.
If you would like to explore collaboration or learn more about the LGF, please contact us at lgf@clarmondial.com
About the Loan Guarantee Facility
The Loan Guarantee Facility (LGF) collaborates with fisheries that implement sustainable management practices by facilitating access to financing. The LGF can de-risk loans from a range of lenders including commercial banks, impact investors, development finance institutions, and philanthropic institutions. The LGF was developed by the Marine Stewardship Council (MSC) and Clarmondial. It supports fisheries at different stages of progress toward the MSC Fisheries Standard, including those in the MSC´s Improvement Program; certified and working on closing conditions; working towards recertification; and undergoing full assessment. Loans facilitated by the LGF may be used to implement improvements in line with the MSC Fisheries Standard as well as for complementary activities or investments that do not have any detrimental impact on the fishery’s environmental performance and preferably help maintain or improve it.
About the Marine Stewardship Council
The Marine Stewardship Council (MSC) is an international non-profit organization that sets a globally recognized standard for sustainable fishing. Through its certification and labelling program, the MSC works with fisheries, supply chain companies, scientists, NGOs, and governments to protect marine ecosystems and ensure seafood supplies for the future. The MSC supports fisheries at different stages on their sustainability journey, including through improvement programs and full assessments, and promotes market-based incentives that reward responsible fishing practices. Millions of consumers around the world can find the MSC blue label on products that meet this standard.
About Clarmondial
Clarmondial is an independent investment advisory firm focused on designing and implementing investment solutions for the sustainable management of natural resources. Through the advisory work and investment funds it has developed, Clarmondial supports the sustainable production of agricultural commodities in emerging markets and collaborates with mission-aligned partners to extend financing solutions to other natural resource sectors, including fisheries. Clarmondial’s activities aim to achieve positive environmental outcomes and contribute to resilient livelihoods in rural and coastal communities.
