New Conservation Fund Emerges from Global Biodiversity Conference

In an innovative move, nearly 200 countries at the UN Biodiversity Conference in Cali, Colombia, have agreed to a new fund that incentivizes companies profiting from genetic resources to contribute to global biodiversity conservation efforts, signaling a shift towards corporate responsibility in environmental sustainability.

In a significant moment for international conservation efforts, delegates from almost 200 countries concluded two weeks of negotiations in Cali, Colombia, at the UN-sponsored biodiversity conference known as COP16. The talks culminated in the establishment of a new fund that will compel businesses to financially support global conservation efforts by contributing a portion of profits derived from genetic resources.

This pioneering agreement requires companies utilizing genetic information, referred to as digital sequence information, to pay into a fund, which aims to allocate these funds towards biodiversity preservation. The shift comes as technological advancements have made the sequencing of genetic material more accessible, leading to an increase in the wealth of genetic data available for industries, including pharmaceuticals and biotechnology.

Amber Scholz, leading the science policy department at Germany’s Leibniz Institute DSMZ, emphasized the significance of the arrangement, highlighting that traditional funding for conservation has primarily come from governments and philanthropic sources. “This fund allows businesses that benefit from nature's diversity to contribute positively as well,” she stated.

While the fund is labeled as voluntary in the final declaration, it offers a framework suggesting a contribution of 1 percent of profits or 0.1 percent of revenues. Governments have the option to legislate requirements around these contributions. Research estimates indicate that such a fund could generate up to $1 billion annually for biodiversity conservation.

Importantly, the agreement acknowledges the vital role of Indigenous communities as stewards of biodiversity, allocating half of the fund's resources specifically for their support. However, discussions surrounding certain contentious issues, particularly regarding the mobilization of $200 billion annually by 2030 for environmental initiatives, remain unresolved and are set to continue in future negotiations.

The COP16 conference follows the prior meeting held in Montreal in 2022, which established bold commitments aimed at restoring and conserving nature amidst growing environmental challenges.