Diplomats representing nearly 200 nations wrapped up two weeks of discussions at the United Nations Biodiversity Conference held in Cali, Colombia, on Saturday, unveiling a significant agreement that is poised to reshape the financing of conservation initiatives. The newly established fund will compel companies profiting from the usage of genetic data, referred to as digital sequence information, to contribute financially toward global biodiversity preservation efforts.
As advancements in science have made genetic sequencing more accessible, databases now contain vast amounts of genetic information that pharmaceutical, biotechnology, and cosmetics industries mine for product development. Delegates at COP16, the 16th Conference of the Parties to the Convention on Biological Diversity, hailed the agreement as a substantial achievement for environmental funding.
"Traditionally, conservation efforts have relied heavily on government and philanthropic funding. Now, businesses profiting from biodiversity are being called upon to actively contribute to a new funding mechanism," stated Amber Scholz, the head of the science policy department at the Leibniz Institute DSMZ in Germany.
The fund's establishment is voluntary, urging companies to allocate 1 percent of their profits or 0.1 percent of their total revenue to these conservation efforts. Governments are invited to consider measures that may impose a mandatory contribution requirement on companies. This fund holds the potential to generate approximately $1 billion annually for biodiversity conservation, according to analyses commissioned by the treaty's governing secretariat.
In a progressive step towards recognizing Indigenous peoples' integral role in biodiversity stewardship, half of the fund's allocations are designated for Indigenous communities, although certain flexibility remains for the participating nations. Despite a deadlock over some key agenda items—including a proposal to mobilize and disburse $200 billion annually by 2030—the negotiations aim to reconvene at a later date.
COP16 followed the pivotal decisions made at last year's 15th biodiversity conference in Montreal, where ambitious goals for conservation and ecological restoration were set forth.
