• Global biodiversity funding boost: The newly launched Cali Fund will channel private sector contributions into biodiversity protection, with at least 50% allocated to indigenous and local communities.
• Business accountability: Companies benefiting from digital sequence information (DSI) in sectors like pharmaceuticals and biotech are expected to contribute a portion of their profits to the fund.
• Kunming-Montreal Framework alignment: The fund will support developing nations in implementing biodiversity strategies and bridge research gaps on genetic resource use.

A New Financial Model for Biodiversity

The United Nations launched the Cali Fund for the Fair and Equitable Sharing of Benefits from Digital Sequence Information (DSI) during the resumed session of COP16 at the Food and Agriculture Organization (FAO) headquarters in Rome. The fund will collect contributions from businesses that profit from genetic data, ensuring financial returns benefit biodiversity conservation and local communities.

“The launch of the Cali Fund today goes beyond the establishment of a financial instrument; it signals a new era of collective action in support of biodiversity worldwide,” said Alain Noudehou, Executive Coordinator of the UN Multi-Partner Trust Fund Office (MPTFO).

Private Sector’s Role in Conservation

The fund is the first mechanism under the Convention on Biological Diversity (CBD) requiring private sector financial contributions. Large corporations in pharmaceuticals, cosmetics, biotech, and other DSI-dependent industries are expected to contribute, though no firm commitments have been made yet.

“The ball is now in the court of businesses around the world. 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,” said Elizabeth Mrema, UNEP Deputy Executive Director.

Companies in non-DSI-reliant industries, public research institutions, and academic organizations are exempt from contributions.

Direct Support for Local Communities

Half of the fund’s proceeds will be directed toward the self-identified needs of indigenous peoples and local communities, including women and youth, recognizing their role in biodiversity conservation.

“Success of the Cali Fund will be critical for providing finance to people on the ground who are custodians for species and genetic diversity,” said Marcos Neto, Director of UNDP’s Sustainable Finance Hub.

The fund will also support developing nations in delivering National Biodiversity Strategies and Action Plans (NBSAPs) under the Kunming-Montreal Global Biodiversity Framework (KMGBF).

Biodiversity Financing at COP16

The launch comes as countries negotiate a financial roadmap to mobilize $200 billion annually for biodiversity protection. While progress has been made, key disputes remain over who should pay and how funds should be distributed.

COP16 President Susana Muhamad emphasized the importance of business engagement:

“The willingness of U.S. businesses to get involved, despite the United States not being a party to the agreement, signals that companies recognize nature is a global public good.“

As negotiations continue, the European Union reaffirmed its commitment to biodiversity funding, with Commissioner Jessika Roswall stating:

“We need to maintain momentum to implement the Global Biodiversity Framework. It matters more than ever in the current geopolitical climate. The EU will work hard to find solutions and continue implementing this historic agreement until 2030 and beyond.“

Looking Ahead

The Multi-Partner Trust Fund Office (MPTFO), hosted by UNDP, will manage the fund, ensuring transparency and efficiency. A Memorandum of Understanding has been signed to formalize partnerships between CBD, UNDP, and UNEP.

With the Cali Fund now operational, attention shifts to private sector commitments—a crucial step in bridging the biodiversity financing gap.

Related Article: UK Appoints Ruth Davis as First Special Representative for Nature Ahead of COP16

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