A new international biodiversity fund, the Cali Fund, has been launched at the 16th Conference of Parties (COP16) to the United Nations Convention on Biological Diversity (CBD) in Rome, Italy. The fund is a groundbreaking initiative aimed at financing biodiversity conservation by collecting direct contributions from businesses that use genetic resources.
What is the Cali Fund?
The Cali Fund was created following a historic agreement at COP16 in Colombia (2024) that established a global system for sharing benefits from Digital Sequence Information (DSI).
It is a major step toward achieving the Kunming-Montreal Global Biodiversity Framework (KMGBF) goal of halting and reversing biodiversity loss by 2030.
The fund will provide crucial financing to indigenous communities, local custodians of biodiversity, and scientific research projects.
It is the first UN-led global biodiversity fund that will receive direct contributions from private businesses.
How Will the Fund Work?
The fund will collect financial contributions from businesses that rely on DSI, which includes genetic data from plants, animals, and microorganisms.
Industries such as pharmaceuticals, cosmetics, agriculture, and biotechnology use DSI for product development. Under the new system, they will contribute part of their revenue to the fund.
At least 50% of the resources will be allocated to indigenous peoples and local communities, acknowledging their critical role in protecting biodiversity.
Funds will be used for:
- Biodiversity conservation projects
- Implementing biodiversity action plans in developing nations
- Scientific research on genetic data storage and use
Management of the Fund
- The United Nations Development Programme (UNDP) and United Nations Environment Programme (UNEP) will oversee the fund.
- The Multi-Partner Trust Fund Office (MPTFO) will handle administrative tasks.
Significance of Cali Fund
- Ensures industries benefiting from genetic resources contribute financially to biodiversity conservation.
- Establishes a fair system where funds are directed towards local communities and conservation initiatives.
- Strengthens global efforts to halt and reverse biodiversity loss by 2030.
- Represents a historic shift in biodiversity financing by making the private sector accountable for conservation.
- The Cali Fund marks a transformative step in global biodiversity finance, ensuring businesses using genetic resources pay their fair share while supporting conservation efforts worldwide.
Convention on Biological Diversity (CBD)
- Established in 1992, the CBD is an international treaty focused on:
- Biodiversity conservation
- Sustainable use of biological resources
- Equitable sharing of benefits from genetic resources
- It has 196 member countries, making it one of the most widely adopted international treaties.
Protocols Under the CBD
- Cartagena Protocol (2003) – Focuses on safeguarding biodiversity from genetically modified organisms (GMOs). It ensures the safe transport, handling, and use of GMOs to prevent risks to biodiversity and human health.
- Nagoya Protocol (2014) – Provides a legal framework for the fair and equitable sharing of benefits derived from genetic resources.
The Kunming-Montreal Global Biodiversity Framework (KMGBF)
- Adopted at COP15, it outlines a roadmap for achieving the Sustainable Development Goals (SDGs) and global biodiversity targets.
- This Framework supports the achievement of SDGs and builds on the Convention’s previous Strategic Plans and sets out an ambitious pathway to reach the global vision of a world living in harmony with nature by 2050.
- The framework includes:
- 4 major goals for 2050
- 23 specific targets for 2030