A new global fund for conservation called the Cali Fund is stepping up to address conservation financing gaps by requiring companies to share profits derived from the use of genetic data sourced from nature. Launched during the United Nations Convention on Biological Diversity summit (COP16) held recently in Cali, Colombia, this innovative financial mechanism aims to raise as much as $1 billion yearly for the protection of biodiversity. More than half of the funds raised are designated to be allocated directly to Indigenous peoples and local communities, either through governments or designated institutions.
Mongabay contributor Justin Catanoso reported from COP16, sharing insights from the discussions surrounding the fund. A key point of agreement among participating countries was the notion of imposing contributions from companies benefiting from biodiverse resources. For sectors such as pharmaceuticals and cosmetics, the proposed contribution is set at about 1% of profits or 0.1% of revenue linked to their usage of digital sequence information (DSI). This term refers to genetic data utilized from plants, animals, and microorganisms found in nature.
Major players like Moderna, the U.S. pharmaceutical corporation behind the COVID-19 vaccine, have been implicated. They acknowledged their willingness to compensate under the fund, albeit under voluntary terms, which have raised eyebrows among COP16 attendees. Experts caution against the use of the term “should” within the agreement, arguing it implies contributions remain optional, as highlighted by Carbon Brief.
Georgina Chandler, head of policy for the Zoological Society of London, voiced concerns, stating, "If you acknowledge the biodiversity crisis as a user of DSI, [and] you acknowledge your dependence on biodiversity for your operations, then you should also agree to cover the costs of protecting it." The emphasis on financial accountability is not merely theoretical; for example, had the Cali Fund been active during the pandemic, Moderna would have needed to pay approximately $30 million based on the $30 billion revenue from vaccine sales.
There's also worry about industries seeking exemptions from the Cali Fund, especially from the agricultural sector. The fund's establishment positions it to support the implementation of the Kunming-Montreal Global Biodiversity Framework, which aims to confront and ideally reverse biodiversity loss.
Neville Ash, who leads the U.N. Environment Programme’s World Conservation Monitoring Centre, discussed the potential impacts of the fund, indicating it could motivate national legislation to facilitate payments from large corporations. This will be pivotal moving forward as nations gear up for future biodiversity summits where finer details about the fund’s operations are to be hashed out.
Simultaneously, the climate crisis continues to deepen, with urgent action required to counter its economic fallout. Simon Stiell, the executive secretary of the United Nations Convention on Climate Change, highlighted this at the opening of COP29, emphasizing the severe economic impacts climate change exacerbates. He warned nations of the danger posed by neglecting climate action, urging them to address it at both national and international levels.
Stiell underscored how the repercussions of climate change have transitioned from future risks to pressing threats. He went on to frame the climate crisis as simultaneously being a cost-of-living crisis, linking increasing natural disasters to rising business and household costs.
He urged for bold climate policies, emphasizing the necessity for developed countries to step up significantly, highlighting the likelihood of inflationary pressures dubbed as “putting inflation on steroids” if decisive action is not taken. With current trends, Stiell conveyed worrying signals surrounding the peaking of global emissions and the looming reality of surpassing the agreed-upon thresholds outlined during the 2015 Paris Agreement era. It remains evident sharp reductions are pivotal to keeping global temperatures from exceeding 1.5 degrees Celsius, averting the worst odds of climate change impacts.
Despite the establishment of climate measures, variations persist across nations, particularly between industrialized and developing ones. Stiell proposed viewing climate finance as not merely optional but as invaluable, as varied nations face diverging challenges impacted by climate events.
At COP29, the discord around responsibility for steering global transition from fossil fuels also erupted, with Azerbaijan's President highlighting the hypocrisy perceived from more affluent nations who lecture developing countries, often heavily reliant on fossil fuels themselves.
Emerging economies, like India, are witnessing increased emissions tied to heightened energy demands driven by economic growth, reflecting the stark contrasts in energy use patterns across the globe.
The latest report from the Global Carbon Budget predicts the possibility of emissions hitting record highs amid the climate discussions, where stakeholders grapple with both the moral obligations and economic realities posed by climate change at this pivotal juncture.
The complex interplay between corporate responsibility, governmental action, and international cooperation will be tested as world leaders navigate these discussions, making the coming months increasingly pivotal.
