In a major step towards biodiversity conservation, the United Nations and private sector stakeholders have launched the Cali Fund for the Fair and Equitable Sharing of Benefits from the Use of Digital Sequence Information (DSI) on Genetic Resources.
The fund, which was officially inaugurated in Rome at the Headquarters of the Food and Agriculture Organization (FAO) on the sidelines of the resumed session of the 16th Conference of Parties (COP 16) of the Convention on Biological Diversity (CBD), aims to mobilize new funding streams for biodiversity action worldwide.
The Cali Fund will receive contributions from private sector entities that commercially utilize DSI, particularly in industries such as pharmaceuticals, cosmetics, agricultural biotechnology, and scientific research. However, academic institutions, public research bodies, and companies that do not rely on DSI are exempt from contributing.
A significant aspect of the initiative is the allocation of 50 percent of the fund’s resources to indigenous peoples and local communities, including women and youth, in recognition of their role as custodians of biodiversity.
Speaking at the launch, COP 16 President, H.E. Susana Muhamad, commended the CBD Secretariat for the swift operationalization of the fund, which was established following a decision adopted on November 2, 2024, in Cali, Colombia.
“Colombians are proud that this major achievement under the CBD saw the light of day at La COP de la gente in Cali,” she stated.
Also speaking, Elizabeth Mrema, UNEP Deputy Executive Director, urged businesses to support the fund, stressing that companies contributing to the initiative will be recognized as pioneers in global biodiversity conservation.
The fund will be hosted by the UN Multi-Partner Trust Fund Office (MPTFO), with the United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP) as partners, while the CBD Secretariat will oversee its implementation.
The initiative will support the implementation of the Kunming-Montreal Global Biodiversity Framework (KMGBF) by helping developing countries execute their National Biodiversity Strategies and Action Plans (NBSAPs). Additionally, it aims to bridge scientific research gaps and enhance DSI access, analysis, and storage for biodiversity conservation efforts.
According to Marcos Neto, Director of UNDP’s Sustainable Finance Hub, the fund’s success is crucial for financing biodiversity efforts at the grassroots level.
Similarly, Alain Noudehou, Executive Coordinator of MPTFO, emphasized that the launch of the fund signals a new era of collective action in biodiversity conservation.
CBD Executive Secretary, Astrid Schomaker, hailed the Cali Fund as a landmark initiative under the Convention, being the first global fund to receive private-sector levies from DSI-generated income.
“This is an eloquent and concrete expression of business commitment to give back to nature and a major win under the CBD,” she stated.
The Cali Fund is expected to drive substantial investments in biodiversity conservation, benefiting both local communities and global ecosystems, while reinforcing the principle of fair and equitable sharing of genetic resources.
By Dare Akogun
