The United Nations has introduced the Cali Fund, a groundbreaking initiative designed to channel private sector contributions into biodiversity conservation. At least 50% of the funds will directly support indigenous and local communities, reinforcing their role in protecting natural ecosystems.

Key Highlights:

🔹 Private Sector Accountability

• Companies in pharmaceuticals, biotech, and cosmetics that benefit from digital sequence information (DSI) are expected to contribute a share of their profits.

• Public research institutions and non-DSI-reliant industries are exempt.

🔹 Aligning with the Kunming-Montreal Framework

• The fund will help developing nations implement National Biodiversity Strategies and Action Plans (NBSAPs).

• It will bridge research gaps on the use of genetic resources.

A New Model for Biodiversity Financing

The Cali Fund—launched during COP16’s resumed session at FAO headquarters in Rome—marks the first-ever private sector contribution mechanism under the Convention on Biological Diversity (CBD). While no formal commitments have been made yet, it sets the stage for corporate financial responsibility in biodiversity conservation.

Empowering Local Communities

50% of the fund’s proceeds will be allocated to support:

• Self-identified priorities of indigenous peoples and local communities.

• Women and youth-led biodiversity initiatives.

The Bigger Financial Picture at COP16

Countries are currently negotiating a roadmap to mobilize $200 billion annually for biodiversity. Key debates focus on who should contribute and how funds should be allocated.

What’s Next?

• The Multi-Partner Trust Fund Office (MPTFO), hosted by UNDP, will manage the fund to ensure transparency.

• A Memorandum of Understanding (MoU) has been signed between CBD, UNDP, and UNEP to formalize governance.

• Attention now shifts to private sector commitments, which will be crucial for closing the biodiversity financing gap.

The Cali Fund represents a significant step toward sustainable biodiversity financing, ensuring that corporate profits from genetic resources contribute directly to conservation and community resilience.

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