International Delegations Set financial Target for Biodiversity Protection: $200 Billion Annually at COP16 2.0
In the spirit of sustainable development and biodiversity conservation, nations gathered at COP16 (resumed in early 2025) with a renewed commitment to protect our planet. One of the key outcomes was the agreement to mobilize $200 billion annually by 2030 to support biodiversity conservation globally, with a focus on developing countries.
This funding target, a global commitment to aid biodiversity efforts, is currently in the process of implementation, involving both public and private sources. The goal is to meet this substantial uplift in finance by 2030.
Another significant agreement was the establishment of the Cali Fund, a new financial mechanism intended to generate revenue from companies using genetic resources, such as pharmaceutical and cosmetic firms, by sharing benefits from digital sequence information (DSI). However, the fund remains largely uncapitalized as of mid-2025, with contributions currently voluntary.
The ambitious 30x30 target was also reinforced at COP16. This target aims to conserve and manage 30% of land, waters, and seas, and restore 30% of degraded ecosystems worldwide. Other goals include halving pesticide risks, nutrient pollution, and pollution harmful to biodiversity, minimizing climate change impacts via nature-based solutions, and reducing invasive species.
The Global Biodiversity Framework, which outlines these goals, also includes establishing a permanent financial arrangement under the Global Environment Facility and multilateral mechanisms for benefit-sharing from digital sequence information. These are designed to complement the Cali Fund and help mobilize resources for biodiversity.
While the $200bn funding goal and the 30x30 conservation targets have been formally adopted and integrated into a global framework, the financial mechanisms like the Cali Fund face significant challenges, especially in mobilizing voluntary contributions from private sector companies using genetic data.
The agreement has received applause from sustainability leaders such as Lorenzo Saa, chief sustainability officer at Clarity AI, who praised the "resilience of multilateralism" in the negotiations. However, Greenpeace has welcomed the deal but stressed the need for actions to follow the agreement.
For financial institutions, opportunities stem from investments in activities that contribute to restoring and protecting nature. Institutions such as Aviva and West Yorkshire Pension Fund, who attended COP16, believe that biodiversity considerations will bring investment risks and opportunities.
Well-positioned companies can reap significant reputational benefits, leading to increased revenues. For instance, Darran Ward of West Yorkshire Pension Fund highlighted a growing recognition among institutional investors that natural capital is a critical component of a sustainable and resilient global economy. The fund aims to enhance resilience, mitigate climate risks, and generate long-term financial returns through direct, active investments in natural assets.
However, concerns remain about the voluntary nature of key mechanisms, including the Cali Fund, and the absence of the US in the agreement. Despite these challenges, efforts continue to operationalize and scale up these funding streams to meet the ambitious conservation objectives set at COP16.
[1] UN Biodiversity Conference: Nations Agree to $200 Billion Annual Goal for Biodiversity [2] Cali Fund: A New Financial Mechanism for Benefit-Sharing from Digital Sequence Information [3] COP16: The Global Biodiversity Framework [4] Aviva and West Yorkshire Pension Fund at COP16 [5] Cali Fund: Current Status and Challenges
- The Global Biodiversity Framework, adopted at COP16, includes the establishment of the Cali Fund, which aims to generate revenue from companies in industries like pharmaceuticals and cosmetics, by sharing benefits from digital sequence information (DSI).
- In order to meet the $200 billion annual financing target for biodiversity conservation by 2030, the agreement seeks to involve both public and private sources, with financial institutions such as Aviva and West Yorkshire Pension Fund identifying opportunities in investments that contribute to the restoration and protection of nature.
