Cali Fund Launched at CBD COP16 to Boost Biodiversity Finance
A groundbreaking initiative in global biodiversity conservation was announced on February 25, 2025, with the launch of the Cali Fund at the 16th Conference of Parties (COP16) to the United Nations Convention on Biological Diversity (CBD) in Rome, Italy. This international fund aims to secure financial contributions from private companies that benefit from genetic data in their industries, ensuring they actively participate in biodiversity conservation efforts.
The Cali Fund represents a major step towards sustainable biodiversity financing, aligning with the goals of the Kunming-Montreal Global Biodiversity Framework (KMGBF) to halt and reverse biodiversity loss by 2030.
The Cali Fund is a newly established global biodiversity finance mechanism that will collect funds from businesses utilizing genetic data in their operations. These contributions will be directed toward conservation projects, scientific research, and the protection of indigenous communities that safeguard natural ecosystems.
The fund was developed following a historic agreement at COP16 in Colombia in 2024, which set up a global system for sharing benefits from Digital Sequence Information (DSI).
The fund introduces a mandatory financial contribution system for companies that depend on Digital Sequence Information (DSI)—a term that refers to genetic data derived from plants, animals, and microorganisms. This includes industries such as:
Under this system, businesses that extract economic value from genetic resources must now pay a portion of their revenue toward biodiversity conservation.
Digital Sequence Information (DSI) refers to genetic sequences stored in digital formats. Companies and researchers use DSI for a variety of purposes, including drug development, genetic engineering, and agricultural innovations.
The use of genetic data extracted from natural sources has led to significant commercial benefits. However, the communities and ecosystems that provide this genetic wealth often receive little to no compensation. The Cali Fund seeks to correct this imbalance by ensuring financial resources flow back to conservation efforts.
The Cali Fund will be strategically allocated to enhance biodiversity conservation through the following means:
Funding for protected areas and conservation initiatives worldwide.
Assisting developing nations in implementing biodiversity action plans to meet international conservation goals.
Funding advanced research to improve how genetic data is stored, analyzed, and shared for sustainable use.
At least 50% of the fund’s resources will go directly to indigenous peoples and local communities, acknowledging their critical role in environmental stewardship.
The United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP) will manage the fund, ensuring transparency and effective resource distribution. Additionally, the Multi-Partner Trust Fund Office (MPTFO) will oversee administrative operations.
The Cali Fund is the first-ever UN biodiversity fund that will receive direct contributions from private businesses. This marks a significant shift in how corporations participate in conservation financing.
The fund is a key step towards achieving the KMGBF target of halting and reversing biodiversity loss by 2030. It ensures that companies benefiting from biodiversity also invest in its protection, creating a sustainable financing model.
By establishing a global system of fair benefit-sharing, the Cali Fund ensures that the economic benefits of biodiversity are distributed equitably, supporting both conservation efforts and local communities.
| Category | Details |
|---|---|
| Why in News? | The Cali Fund was launched on February 25, 2025, at COP16 in Rome to ensure private companies benefiting from biodiversity contribute financially to conservation efforts. |
| What is the Cali Fund? | A global biodiversity finance mechanism collecting funds from businesses that use Digital Sequence Information (DSI) for conservation, research, and community support. |
| Who Will Contribute? | Industries relying on DSI, including pharmaceuticals, cosmetics, agriculture, and biotechnology, must contribute a portion of their revenue. |
| Why is DSI Important? | DSI (Digital Sequence Information) refers to genetic data from plants, animals, and microorganisms, used in research and product development. |
| Fund Allocation | – Biodiversity Conservation Projects (protected areas, species protection) – Developing Countries (support biodiversity action plans) – Scientific Research (improving genetic data management) – Indigenous & Local Communities (at least 50% of funds allocated) |
| Managing Organizations | – United Nations Development Programme (UNDP) – United Nations Environment Programme (UNEP) – Multi-Partner Trust Fund Office (MPTFO) (Administrative tasks) |
| Key Figures & Statements | – Susana Muhamad (COP16 President): “Colombia is proud to finalize the Cali Fund at ‘La COP de la Gente’ in Cali.” – Astrid Schomaker (Executive Secretary, CBD): “This marks a new era of collective action for biodiversity.” – Marcos Neto (Director, UNDP Sustainable Finance Hub): “The fund will be crucial for financing biodiversity conservation efforts.” |
| Why is it Historic? | – First UN biodiversity fund to receive direct business contributions – Supports Kunming-Montreal Global Biodiversity Framework (KMGBF) goal of reversing biodiversity loss by 2030 – Ensures fair benefit-sharing of genetic resources |
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