Among the agreements approved at the COP16 on biodiversity in Rome – following the one held in Colombia – is the so-called “Cali Fund“.
This is one of the achievements of the conference last year aimed at making the benefits derived from the exploitation of digital genetic data more equitable.
Now, it emerges as a promising fund for the future, according to participants of COP16.
What is the Cali Fund and what does it propose
The main objective is to make the benefits derived from the exploitation of digital genetic data (Digital Sequence Information or DSI) more equitable.
In other words, digital information about the genetic sequences of plants and animals.
The fund aims to derive amounts from genetic research. (Photo: Pixabay).
Although these resources usually come from countries in the Global South, the richest in biodiversity, they are currently mainly exploited by companies from the so-called Global North.
According to this agreement, companies in the pharmaceutical, cosmetics, agri-food, nutraceutical, and technological industries that benefit from this data “should” allocate 1% of their profits, or 0.1% of their revenue, to the Cali Fund.
In other words, mobilizing crucial financial resources from companies that use digitally sequenced genetic data.
The other essential point is that 50% of the revenue will be reserved for direct payments to indigenous peoples and local communities.
Boost for indigenous communities
This initiative represents a boost for indigenous communities. Since 50% of the funds will be allocated to indigenous peoples and local communities, to support actions that allow the implementation of the Global Biodiversity Framework.
The private sector’s involvement in financing biodiversity through this fund marks a milestone, according to conference attendees.
It represents a precedent for corporate contributions responsible for nature.
“With the official opening of the Cali Fund, we take a crucial step to recognize and support the fundamental role of indigenous peoples and local communities as guardians of biodiversity,” stated Ximena Barrera, Director of Government Relations and International Affairs at the NGO Colombia.
“By ensuring that at least 50% of the resources reach them directly, this fund recognizes their invaluable contributions to conservation and strengthens their ability to protect nature for future generations,” she emphasized.
The COP16 on biodiversity resumed in Rome last week. (Photo: @SchomakerAstrid).
“We celebrate this innovative mechanism that will strengthen the implementation of the Global Biodiversity Framework and the UN Convention on Biological Diversity,” Barrera said. “Ensuring, at the same time, direct benefits for those who have protected ecosystems for centuries,” she concluded.
The financial agreement of COP16
Countries agreed to contribute $200 billion annually by 2030. The commitment was established in the previous meeting in Montreal.
Agreements were reached at the COP16 on biodiversity.
This amount includes a Financial Pact to raise $20 billion annually for conservation in developing countries by 2025, increasing to $30 billion annually by 2030.
The Global Biodiversity Framework aims to protect 30% of the planet and restore 30% of degraded ecosystems by 2030.
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