A hot topic of discussion in the responsible investment world, biodiversity – described as the variety and variability of life on Earth – is a theme that has slowly been taking its place on the policy makers’ agenda. The vast array of living organisms, and the intricate ecosystems they inhabit, are essential for the health of our planet and the well-being of humanity. From providing clean air and water, to facilitating crop pollination, regulating climate, advancing medical research and ensuring food security, biodiversity underpins the very fabric of our existence.
Since its inception in 1992, the Convention on Biological Diversity (CBD) – more commonly known as the UN Biodiversity Conference, or COP16 – has been held biannually to discuss global targets for nature conservation.
This year’s conference, held over two weeks in October in Cali, Colombia, was the biggest to date, and saw a gathering of 23,000 registered delegates from across 196 countries, representing world governments, big corporations, academia, as well as Indigenous communities. With that in mind, there were high expectations for what the conference could achieve, specifically in facilitating agreement between world nations on the most tangible ways to monitor impact of economic activities on nature, as well as tracking progress on goals agreed at the 2022 conference in Montreal.
Indeed, the Kunming Montreal Global Biodiversity Framework (KMGBF) was established at the 2022 CBD, outlining long-term goals to be achieved in the coming years, as well as introducing the idea of a global fund to support the attainment of said goals. This fund aims to mobilise $200bn annually by 2030, through contributions from governments, philanthropy and the private sector.
On the agenda for COP16 were discussions around the financing mechanisms required to achieve the KMGBF goals, as well as the monitoring of global economic activity on nature, and how to fairly and equitably share benefits of genetic resources.
Funding was certainly the main challenge, with only $163m pledged during the conference. This brings the fund’s total resources to $400m – still a long way from the overall annual goal of $200bn. The European Union, Canada, New Zealand, Australia, Norway and Japan all opposed the proposal to set up a new fund to contribute to nature restoration in developing countries.
They argued that the creation of a new initiative would complicate the existing funding mechanisms and potentially divert resources from other important initiatives, as well as imposing unnecessary bureaucratic hurdles and delays. Further discussions on funding are expected in the coming months, but this key element of the conference was clearly a disappointment to most developing nations.
On a more optimistic note, there was some positive progress achieved in the last two weeks – firstly, in the creation of a new subsidiary body to allow for the engagement and participation of Indigenous peoples and communities in future discussions on nature conservation. The modus operandi of this organisation will be further developed over the next two years and will also allow for the participation of Afro-descendent communities.
Secondly, and achieving a key goal for the conference in the area of genetic information, an agreement was reached regarding the use of digital sequence information (DSI) on genetic resources. As a result, large corporations that commercially benefit from DSI taken from animals and plants can now voluntarily contribute to a fund that aims to reinvest in nature and support the needs of Indigenous peoples and local communities. The non-binding agreement will be based on a percentage of companies’ earnings or revenues, and targets producers of pharmaceuticals, food, health supplements, cosmetics, biotechnology, as well as agribusiness. Academia and public research institutions are exempt.
A third positive highlight of the conference was the recognition of Petro and Lula – the presidents of Colombia and Brazil respectively – for their leadership in taking integrated action to tackle issues relating to climate, nature and food systems. The two nations are currently working on formalising a joint action plan, which is likely to be presented at the COP30 – the 30th annual UN Climate conference to be held in Brazil in November 2025.
Looking ahead, the commitments made at recent conferences are expected to be considered priorities by governments and large institutions alike. Funding continues to be the main challenge, and environmental leaders will need to hone their narrative and expand their ideas in order to convince nations of the Global North to contribute more significantly to achieving biodiversity targets. The development of specific monitoring measures to track the progress of these targets will also be key in helping to identify where improvements are being made and where further action is required.
All things considered, while the conference has demonstrated some positive progress, we nonetheless continue to face unaddressed issues. It is up to us, therefore, to decide whether to look at COP16 as a glass half-empty, or half-full.
