Global summit reaches landmark biodiversity fund for conservation

Diplomats from nearly 180 countries recently concluded environmental talks at COP16 with a breakthrough agreement to create a biodiversity fund. This fund aims to channel a portion of profits from companies using genetic resources, such as pharmaceutical and biotech firms, into global conservation efforts. With guidelines suggesting contributions of 1% of profits or 0.1% of revenue, the fund could raise an estimated US$ 1 billion annually, with half earmarked for Indigenous-led conservation initiatives. This landmark decision seeks to involve private industry in financing biodiversity protection, supplementing traditional government and philanthropic funding sources.

Diplomats from around 180 countries concluded two weeks of environmental talks by agreeing on a new biodiversity fund aimed at supporting global conservation efforts. The agreement, reached at COP16, the 16th Conference of the Parties to the Convention on Biological Diversity, calls on companies that derive profits from nature’s genetic resources to contribute to this fund. This payment structure targets companies utilizing genetic information, or “digital sequence information” (DSI), from databases to develop products in fields such as pharmaceuticals, cosmetics, and biotechnology.

Recent advancements in technology have made it easier and more affordable to sequence genetic material, leading to the vast availability of genetic data in databases. This information has become a valuable asset for many industries, and the newly proposed fund introduces a way for businesses to give back to conservation by paying a fee for their use of these genetic resources. The agreement, although voluntary, suggests that companies “should” contribute either 1% of their profits or 0.1% of their revenue as a guideline. Governments are encouraged to establish legislation or other measures to make these contributions mandatory.

Amber Scholz, head of the science policy department at the Leibniz Institute DSMZ in Germany, praised the move, noting that while conservation has traditionally relied on government funding and philanthropy, this initiative will now involve businesses that benefit financially from biodiversity. Experts estimate that this fund could potentially raise about US$ 1 billion annually for biodiversity efforts.

A noteworthy element of the agreement is its recognition of Indigenous communities as vital custodians of biodiversity. Consequently, half of the fund’s proceeds are earmarked to support Indigenous-led conservation efforts, though countries allowed for some flexibility in this allocation.

Despite the progress, the talks, which extended beyond their Friday deadline, concluded abruptly on Saturday as delegates departed for the airport, causing a loss of quorum. Some key issues, including a previously set goal of mobilizing US$200 billion annually for biodiversity by 2030, remain unresolved and will be addressed in future negotiations.

This agreement represents a step forward in the global effort to fund biodiversity conservation by involving businesses that benefit from genetic resources. However, it also highlights ongoing challenges in securing adequate and consistent financial support for large-scale environmental objectives.