Key Takeaways:
- Private sector contributions: Companies profiting from genetic data use will allocate a portion of revenues to the Fund.
- Indigenous communities benefit: At least 50% of funds will go to indigenous peoples and local communities.
- Supports global biodiversity goals: The Fund will aid in implementing the Kunming-Montreal Global Biodiversity Framework.
A New Era for Biodiversity Finance
The Cali Fund for the Fair and Equitable Sharing of Benefits from Digital Sequence Information on Genetic Resources (DSI) officially launched at COP16 in Rome. This Fund marks a major milestone in biodiversity financing by securing private sector contributions to support global conservation efforts.
Companies leveraging genetic data in industries such as pharmaceuticals, cosmetics, agriculture, and biotechnology will contribute a portion of their revenue. These contributions will fund biodiversity initiatives under the Convention on Biological Diversity (CBD), with at least 50% allocated to indigenous and local communities.
Strengthening Global Biodiversity Commitments
The Cali Fund will be instrumental in implementing the Kunming-Montreal Global Biodiversity Framework (KMGBF) by:
- Funding National Biodiversity Strategies and Action Plans (NBSAPs) in developing countries.
- Enhancing scientific research on biodiversity and data-sharing efforts.
- Bridging existing gaps in digital sequence information (DSI) access and utilization.
COP16 President H.E. Susana Muhamad emphasized Colombia’s pride in this achievement, stating: “Colombians are proud that this major achievement under the CBD saw the light of day at La COP de la gente in Cali.”
A Historic Collaboration for Nature
The Cali Fund will be hosted by the Multi-Partner Trust Fund Office (MPTFO) in partnership with the United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP), with the CBD Secretariat managing its operations.
Elizabeth Mrema, UNEP Deputy Executive Director, called for business leadership, noting: “Those who pay into the Fund will go down in history as pioneers and will reap the benefits as the public increasingly recognizes the importance of giving back to nature.”
Industry Participation and Expectations
Major industries reliant on DSI—including pharmaceuticals, biotech, and scientific services—are expected to contribute, while academic institutions, public research organizations, and non-DSI-reliant firms are exempt.
Marcos Neto, Director of UNDP’s Sustainable Finance Hub, highlighted the Fund’s potential: “Success of the Cali Fund will be critical for providing finance to people on the ground who are custodians for species and genetic diversity.”
Alain Noudehou, MPTFO Executive Coordinator, framed the Fund as “a new era of collective action in support of biodiversity worldwide.”
A Game-Changer for Global Conservation
Astrid Schomaker, Executive Secretary of the CBD, underscored the Fund’s significance: “For the first time since the inception of the Convention, a global fund under the Conference of the Parties will receive contributions from the private sector in the form of levies from business income generated thanks to the use of digital sequence information on genetic resources.”
The Cali Fund represents a transformative shift in financing biodiversity conservation, creating an unprecedented collaboration between the private sector and global environmental governance.
Related Article: COP16: The Role of Technology in Global Biodiversity
