Negotiations at the UN Biodiversity Conference in Cali, Colombia, led to a crucial agreement aimed at bolstering biodiversity conservation funding.
New Fund Established to Fund Biodiversity Conservation through Genetic Resource Use

New Fund Established to Fund Biodiversity Conservation through Genetic Resource Use
Global discussions culminate in a voluntary compensation measure for using genetic information from nature.
In a landmark development, diplomats from close to 200 nations concluded their two-week discussions in Cali, Colombia, this past Saturday, reaching an agreement to create a new fund aimed at enhancing global conservation efforts through the financial compensation of genetic resources. This collaboration arose during the United Nations-sponsored COP16, or the 16th Conference of the Parties to the Convention on Biological Diversity.
The newly established fund is oriented toward companies that profit from genetic data, also known as digital sequence information, which has become increasingly accessible due to advancements in technology. Pharmaceutical, cosmetic, and biotechnology industries utilize these vast genetic databases to spearhead the development of innovative products. Under the terms of the agreement, businesses would contribute a fee related to their use of biodiversity, marking a significant shift in conservation funding dynamics.
Amber Scholz, who leads the science policy department at the Leibniz Institute DSMZ in Germany, noted the pivotal nature of this arrangement, stating that “Conservation is mostly funded by governments and philanthropy. Now, businesses that profit from biodiversity will pay into a new fund.”
While the fund is characterized as voluntary, with companies “encouraged” to contribute, it includes proposal guidelines, suggesting that they contribute 1 percent of their profits or 0.1 percent of their total revenue. Moreover, governments are encouraged to consider regulations or measures to enforce those contributions.
By leveraging this new fiscal mechanism, it’s anticipated that the fund could potentially generate up to $1 billion annually for biodiversity initiatives, as evidenced in past research commissioned by the treaty's governing body.
In a significant nod to Indigenous communities, half of the funds collected will be allocated directly to them, recognizing their role as stewards of biodiversity. However, the conference also faced challenges, with unresolved discussions about mobilizing and distributing $200 billion a year by 2030, necessitating further negotiations at a later date.
This conference followed the COP15 held in Montreal in 2022, which established pivotal targets aimed at the conservation and restoration of global ecosystems. As the urgency to address biodiversity loss escalates, the establishment of this fund signals a progressive step toward fostering a sustainable balance between commercial interests and environmental conservation.
The newly established fund is oriented toward companies that profit from genetic data, also known as digital sequence information, which has become increasingly accessible due to advancements in technology. Pharmaceutical, cosmetic, and biotechnology industries utilize these vast genetic databases to spearhead the development of innovative products. Under the terms of the agreement, businesses would contribute a fee related to their use of biodiversity, marking a significant shift in conservation funding dynamics.
Amber Scholz, who leads the science policy department at the Leibniz Institute DSMZ in Germany, noted the pivotal nature of this arrangement, stating that “Conservation is mostly funded by governments and philanthropy. Now, businesses that profit from biodiversity will pay into a new fund.”
While the fund is characterized as voluntary, with companies “encouraged” to contribute, it includes proposal guidelines, suggesting that they contribute 1 percent of their profits or 0.1 percent of their total revenue. Moreover, governments are encouraged to consider regulations or measures to enforce those contributions.
By leveraging this new fiscal mechanism, it’s anticipated that the fund could potentially generate up to $1 billion annually for biodiversity initiatives, as evidenced in past research commissioned by the treaty's governing body.
In a significant nod to Indigenous communities, half of the funds collected will be allocated directly to them, recognizing their role as stewards of biodiversity. However, the conference also faced challenges, with unresolved discussions about mobilizing and distributing $200 billion a year by 2030, necessitating further negotiations at a later date.
This conference followed the COP15 held in Montreal in 2022, which established pivotal targets aimed at the conservation and restoration of global ecosystems. As the urgency to address biodiversity loss escalates, the establishment of this fund signals a progressive step toward fostering a sustainable balance between commercial interests and environmental conservation.