Countries at COP16 in Colombia reach agreement on biodiversity payments
Nearly 200 countries convened at the U.N. COP16 nature talks in Cali this Saturday, reaching a landmark agreement requiring companies in the pharmaceuticals, cosmetics, and biotechnology sectors to financially compensate for their use of genetic information derived from biodiversity in their research and development efforts.
This agreement is part of the broader implementation of the 2022 Kunming-Montreal Global Biodiversity Framework, aimed at halting the rapid decline of nature by 2030. The payments generated from this initiative are expected to yield billions of dollars for nature conservation, with half of the proceeds designated for Indigenous peoples and local communities.
Genetic data drawn from nature plays a crucial role in a variety of products, from nutrient-enriched rice to denim jeans treated with enzymes sourced from microbes. The deal, which initially faced significant contention—especially between India and Switzerland—was finalized after intense negotiations that extended through the night.
In a related development, COP16 delegates agreed late Friday to establish a permanent body for Indigenous and local communities to consult on U.N. nature decisions, while also acknowledging the vital role of Afro-descendant communities in conservation efforts.
Daphne Yong-D’Herve, an expert with the International Chamber of Commerce, emphasized the commitment of businesses to biodiversity goals, stating, “Businesses are committed to supporting biodiversity goals and have been engaging throughout the process.”
The newly created fund, named the Cali Fund after the host city, will require qualifying companies to contribute either 0.1% of their revenue or 1% of their profits.
Glenn Walker, head of the nature program at Greenpeace Australia Pacific, hailed the agreement, stating, “The clear signal sent by COP16 today is that large corporations must pay back their dues for nature protection.”
As the COP16 talks continue, the momentum towards global biodiversity protection appears stronger than ever, with significant implications for industries reliant on genetic resources.
