Historic Agreement at COP16 on Biodiversity Financing

March 1, 2025

World leaders gathered at the 16th Conference of the Parties (COP16) in Rome have made strides in global biodiversity conservation. The conference resumed on February 25, 2025, after being paused in Cali, Colombia in 2024. A historic agreement was reached to establish a long-term financial mechanism aimed at supporting the Kunming-Montreal Global Biodiversity Framework (KMGBF).

Key Funding Commitments

The agreement aims to close the biodiversity finance gap by establishing long-term financial mechanisms under the Convention on Biological Diversity (CBD). This includes enhancing existing funding sources and exploring new avenues such as private sector contributions and blended finance.
Governments committed to mobilising $200 billion annually by 2030, with an interim goal of $20 billion per year by 2025, increasing to $30 billion by 2030 from international sources.
The Global Environment Facility (GEF) has already allocated over $3 billion to support biodiversity goals, leveraging an additional $22 billion, including $1.9 billion from the private sector.

Implementation of Article 21

The second objective focuses on implementing Article 21 of the CBD. This article aims to establish a permanent financial mechanism under the authority of the COP, ensuring sustained funding for biodiversity protection. Countries from various regions, including Asia-Pacific, Latin America, and small island nations, sought clearer definitions within the agreement. Brazil, representing BRICS nations, proposed changes to clarify funding sources and mechanisms.

Launch of the Cali Fund

A notable achievement at COP16 was the launch of the Cali Fund, which ensures equitable benefit-sharing from the use of digital information on genetic resources.
Industries such as pharmaceuticals and biotechnology will now be required to share profits derived from genetic data, which will support biodiversity conservation.
Importantly, at least 50 per cent of the Cali Fund’s resources will be allocated to Indigenous communities, acknowledging their crucial role in biodiversity preservation.

Strengthened Monitoring and Reporting

Governments have also reinforced regulations for tracking and reporting progress on biodiversity goals. The updated KMGBF plan now includes clear methods for measuring global progress. The first global assessment of biodiversity commitments is scheduled for COP17, where countries will evaluate their progress towards 2030 targets. Reports will now incorporate perspectives from young people, women, Indigenous communities, and private businesses, promoting inclusive participation in conservation efforts.

Upcoming Challenges

With funding commitments secured and a monitoring system established, the focus shifts to translating these decisions into actionable outcomes. The global community will closely observe preparations for COP17, set to take place in Armenia in 2026, where progress on biodiversity finance and conservation goals will be assessed.

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