COP16 in Cali, Colombia, saw mixed reactions from the 3,000 delegates, but there were some notable victories. One key achievement was the establishment of a new subsidiary body that will give Indigenous peoples, who protect 80% of the world’s biodiversity, a voice in future biodiversity COPs.
Another win was the creation of the Cali Fund, a global mechanism that will require companies using digital sequence information from genetic resources—such as pharmaceutical, biotech, and agricultural sectors—to share a portion of their revenues with developing countries, Indigenous peoples, and local communities. This mechanism could generate up to $1 billion annually for conservation, although it will rely on mandatory contributions from governments to be truly effective.
Despite these wins, challenges remain. There was deadlock on the creation of a new nature fund, and developed countries have yet to meet their target of mobilizing $20 billion per year by 2025 to bridge the $700 billion biodiversity funding gap. In 2022, only $12.1 billion was pledged, with just $3.8 billion allocated to biodiversity.
While 3,000 companies and financial institutions attended COP16, triple the number from COP15, progress is slow. Only 5% of companies assess their environmental impact, and fewer than 1% understand their dependency on nature. However, some companies, like Kering, GSK, and Holcim, are setting science-based targets for nature.
Governments must act to align financial flows and address harmful subsidies that negatively impact nature. The European Union’s Deforestation Regulation is a step forward, but its delayed implementation could disadvantage companies already investing in sustainable supply chains.
The Cali talks highlighted the need for integrated climate and nature agendas. With concerns about future U.S. climate policies, other nations will need to lead the way in financing biodiversity efforts.
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