At the United Nations’ COP16 nature summit, hosted in Cali, Colombia, nearly 200 countries reached a landmark agreement on a framework for payments by companies in industries like pharmaceuticals, biotechnology, and cosmetics for their usage of genetic data derived from biodiversity.
This decision, achieved after prolonged negotiations, aligns with the ambitious 2022 Kunming-Montreal Global Biodiversity Framework, which aims to reverse environmental degradation by 2030.
The financial contributions from these industries are expected to flow into the newly established "Cali Fund," intended to support nature conservation efforts globally.
Notably, the fund pledges to distribute half of its proceeds to Indigenous and local communities who have a deep-rooted connection to, and play a significant role in, biodiversity conservation.
Genetic data sourced from nature finds wide-ranging applications across various sectors. It is integral to the development of products like nutrient-enhanced food crops, textiles with unique qualities, and enzymes used in producing consumer goods.
For instance, innovations such as nutrient-enriched rice and denim jeans distressed through enzymes derived from microbes highlight the commercial relevance of biodiversity. This agreement signifies an effort to ensure industries compensate for these natural resources.
An additional milestone at COP16 is the establishment of a permanent consultative body for Indigenous and local communities, ensuring they are actively involved in shaping UN biodiversity policies. This decision also marks a formal acknowledgment of the contributions of Afro-descendant communities in conservation efforts worldwide. The agreement solidifies the role of these groups in guiding biodiversity strategies that impact their lands and cultural heritage.
The newly formed Cali Fund is set to operate as the financial backbone for these initiatives, with specific payment requirements for participating businesses. According to the adopted text, qualifying companies will be required to contribute either 0.1% of their revenue or 1% of their profits. This setup is expected to generate billions of dollars, a portion of which will directly support Indigenous communities and local environmental projects.
Industries directly benefiting from biodiversity have expressed their readiness to support this initiative. "Businesses are committed to supporting biodiversity goals and have been engaging throughout the process," noted Daphne Yong-D’Herve of the International Chamber of Commerce. Her statement underscores the commitment of global corporations to balance commercial interests with environmental stewardship.
The agreement faced challenges, particularly between nations with diverging views on the financial commitments required. A significant divide between India and Switzerland prolonged the discussions, which extended through the night and into early morning hours. However, the eventual adoption of the measure signals a unified acknowledgment of the urgency of environmental and biodiversity issues.
The COP16 agreement is seen as a pivotal step toward protecting biodiversity. Glenn Walker, head of the nature program at Greenpeace Australia Pacific, highlighted the agreement’s importance, stating, “The clear signal sent by COP16 today is that large corporations must pay back their dues for nature protection.” His words echo the sentiment that industries using genetic resources should actively contribute to conservation efforts, creating a sustainable model for future economic and ecological prosperity.
This landmark agreement at COP16 sets a new global standard for compensating Indigenous and local communities for their contributions to conservation while ensuring that industries benefiting from genetic resources support biodiversity. With the establishment of the Cali Fund, the UN nature summit has fostered a collaborative effort to protect our planet’s natural resources.
The framework not only prioritizes environmental protection but also reinforces the role of traditional knowledge and community stewardship in global conservation efforts.