Global Biodiversity Talks Establish Innovative Fund for Conservation Efforts

Nearly 200 countries participating in the COP16 conference have agreed on a groundbreaking fund that will direct a portion of profits from genetic information back into global conservation initiatives, emphasizing the importance of business contributions to protecting biodiversity.

In a significant development for global conservation, diplomats from almost 200 nations concluded two weeks of high-stakes environmental discussions in Cali, Colombia, this past Saturday. The result of these extensive negotiations is a newly established fund aimed at redirecting a percentage of profits generated from nature’s genetic information, known as digital sequence information, back into conservation efforts worldwide.

The funding agreement, part of the 16th Conference of the Parties to the Convention on Biological Diversity (COP16), calls on companies profiting from vast databases of genetic material—compiled through advanced sequencing technologies—to contribute a fee that supports biodiversity preservation. Industries such as pharmaceuticals, cosmetics, and biotechnology leverage this genetic data for the development of innovative products.

Amber Scholz, who leads the science policy department at Germany’s Leibniz Institute DSMZ, highlighted the importance of the agreement, stating, “Conservation is mostly funded by governments and philanthropy. Now, businesses that profit from biodiversity will pay into a new fund.”

Although the fund is currently deemed voluntary, the final report outlines a guideline suggesting companies contribute either 1 percent of their profits or 0.1 percent of their revenue. While governments are “invited” to take measures that could enforce these contributions, projecting potential annual revenues of up to $1 billion, half of the funds would specifically support Indigenous communities known for their stewardship of biodiversity.

The discussions extended past the originally scheduled deadline, ultimately concluding unexpectedly as delegates began to leave, leading to the loss of quorum. Notably, several key agenda items—including strategies for mobilizing and distributing $200 billion annually to conserve nature by 2030—remain unresolved and are set for discussions at a later date.

This year’s COP16 follows the 15th round of biodiversity talks in Montreal in 2022, which marked a pivotal moment in establishing ambitious global targets aimed at conserving and restoring the natural world. As nations continue to grapple with the pressing biodiversity crisis, this new fund represents a significant step forward in integrating economic considerations with environmental stewardship.